ImpactAlpha, February 13 — SHIFT Catalyst Fund has secured a $5 million equity investment from Community Preservation Corp. to invest in real estate developers committed to the creation and preservation of affordable housing in Pennsylvania, New York, California, New Jersey and Washington, D.C.
SHIFT Capital started in Philadelphia to invest in real estate projects with potential for job creation and community revitalization via women and minority-led small businesses. The investment “will enable us to create positive generational change for communities, for minority real estate entrepreneurs, and for the entire industry,” said SHIFT Capital’s Nancy Gephart.
SHIFT Catalyst Fund is aiming to break down barriers for minority real estate developers that are delivering community-based impact in underserved neighborhoods (see, “How a collective of Black developers is raising equity for inclusive real estate in Philadelphia”). In many Black neighborhoods, decades of failed policies and extractive investments have left undervalued housing, underfunded services and a lack of access to financing.
A certified B Corp., SHIFT Catalyst Fund secured $1 million from Woodforest National Bank in September last year.
Impact real estate
Community Preservation, a nonprofit housing finance company created in 1974, has invested more than $14 billion to finance more than 225,000 affordable and green housing units in the U.S. The community development financial institution is financing ESG-linked loans for sustainable buildings through a $100 million partnership with Valley National Bank.
Two years ago, Community Preservation raised $150 million for affordable housing via sustainability bonds.