ImpactAlpha, January 6 – The average cost of a home in the San Diego area is $600,000, making homeownership unaffordable for more than half of the city’s population. Mission Driven Finance’s Homebuilding Investment Fund will help San Diego Habitat for Humanity develop 37 new homes affordable for purchase by lower-income households.
The $2 million will serve as a low-interest line of credit to free up Habitat’s balance sheet and expand its building capacity, Mission Driven Finance’s David Lynn told ImpactAlpha.
Habitat’s 2.25% interest rate can be considered “philanthropy plus,” Lynn says. “As a first pilot fund to test whether this works with Habitat, we wanted to keep it as affordable as possible.”
The fund’s investors, including donor-advised funds and local community foundations, stand to make a 2% return.