Dealflow | December 8, 2020

SoLa Impact’s billion-dollar impact fund targets Black and Latinx communities

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, December 8 — SoLa Impact, a family of social impact-focused affordable housing funds, launched a billion-dollar fund to build affordable housing in Black and Latinx communities in South Los Angeles and beyond.

The Black Impact Fund is structured as two $500 million funds, one of them an Opportunity Zone fund to capture tax incentives. SoLa Impact will commit 13% of the fund’s appreciation and fees earnings to its affiliated nonprofit The Black Impact Community Fund, SoLa’s Martin Muoto told ImpactAlpha (see, Agent of Impact: Martin Muoto)

SoLa Impact manages more than 1,500 apartments in southern L.A. Approximately 85% of its tenants come from disadvantaged backgrounds. More than half are formerly homeless, 60% live below the poverty line. The Black Impact Community Fund provides job training, college scholarships and financial education classes. 

SoLa Impact hopes to have a first close for the Black Impact Fund early next year. “The response has been uncanny. I’m somewhat overwhelmed by it,” says Muoto. The fund will initially invest in southern L.A., Oakland, Portland, Seattle and other cities with an “acute housing shortage.”