$30 Million Raised – 951 New Homes – And More to Come
Housing Trust Silicon Valley, a nonprofit community loan fund based in San Jose, is announcing the one-year mark for TECH Fund, its investment vehicle for affordable housing. In the span of one year the fund has raised $30 million which has been used or committed toward nine separate housing developments in the greater Bay Area totaling 951 affordable homes.
TECH Fund was introduced at Housing Trust’s annual event, Investor Briefing, in March 2017 with a $10 million investments from Cisco Foundation which was matched by $5 million each from the David & Lucile Packard Foundation and the Sobrato Family Foundation. Before the close of the year LinkedIn invested $10 million, becoming the first private sector entity to invest in the fund, which is well on its way to creating 10,000 homes in ten years.
Investments in the TECH Fund is backed by Housing Trust, a AA- Standard & Poor’s rated organization. Corporations, foundations and accredited investors can make a social investment through Housing Trust’s community impact note – choosing between a 5-year note at 1.5% interest or a 10-year note at 2% interest, with a minimum investments of $1 million.
“TECH Fund is solving both problems it was created to address,” said Kevin Zwick, CEO of Housing Trust Silicon Valley. “It not only gives Bay Area firms a proven impact investing vehicle to create affordable homes, but it also gives developers the ability to compete in this hyper-competitive market and secure housing sites quickly.”
LinkedIn’s investment of $10 million is one example of the speed funds can make a difference. A short 45 days after announcing the $10 million investment the entire amount had been lent out to two developers: Eden Housing and Palo Alto Housing Corporation–who were able to close on two different pieces of land in Mountain View to create more than 160 new affordable homes. A portion went to part of an $8.1 million loan to Palo Alto Housing to purchase a site at 950 W. El Camino Real in Mountain View to develop and operate a 100% affordable housing complex. Twenty of the 70 units will be reserved for permanent supportive housing – which align with Santa Clara County’s Measure A Funding priorities. Eden Housing was able to use the TECH Fund for a $9.7 million acquisition loan for an affordable housing project on 1100 La Avenida Ave. All 93 units are for residents who make 60% or below area median income.
Across all nine separate housing developments, nearly all of the 951 homes are aimed at low income residents (earning 80% or less of area median income) with nearly half reserved for very low income households (50% or less AMI).
“The first year of TECH Fund has been profoundly encouraging – especially since the Bay Area is realizing the creation of affordable homes is in everyone’s best interest,” said Zwick. “We’re excited to work with current and future partners to secure more investment in more affordable homes. Our theme for 2018 is ‘more is more’ and we are putting that theme into full effect.”
For more information about TECH Fund click here.
ABOUT HOUSING TRUST SILICON VALLEY
Housing Trust Silicon Valley (Housing Trust) is a nonprofit community loan fund based in San Jose that works to improve quality of life low-income people in the Greater Bay Area by increasing affordable housing opportunities. Since 2000, Housing Trust has invested $171 million in programs that help everyone from the homeless to renters to first-time homebuyers – creating more than 16,000 affordable housing opportunities serving over 29,000 of our neighbors. It is the first nonprofit Community Development Financial Institution (CDFI) to receive a Standard & Poor’s rating, AA- because of its strong capacity to meet financial commitments. For more information visit www.housingtrustsv.org
ABOUT TECH FUND
TECH Fund (Tech + Equity + Community + Housing) is an initiative created by Housing Trust Silicon Valley to create opportunities for philanthropists and large Bay Area employers to provide resources to be part of the affordable housing solution. The fund began in March 2017 with an initial investment from the Cisco Foundation that has since been followed by investments from the Sobrato Family Foundation and the David and Lucile Packard Foundation. The Housing Trust goal created 10,000 affordable homes in ten years. For more information visit www.housingtrustsv.org/tech-fund/
Contact: Julie Quinn, Dir. Of Resource Development, Housing Trust Silicon Valley email@example.com 408-436-3450 x 223
Contact: Michael Norris, Communications Manager, Housing Trust Silicon Valley firstname.lastname@example.org 408-4363450 x 241