The Arizona Community Foundation recognized a growing social crisis where housing options, both owned and leased, had become far too few for those with lower and moderate incomes.
An innovative solution
In partnership with the Phoenix office of the Local Initiatives Support Corporation, ACF created the Affordable Housing Fund in 2007 as an innovative way to address the issue.
Unlike traditional charitable funds, this Fund provides zero-interest loans to nonprofit housing developers for the pre-development phase of affordable housing projects, for which financing is not typically available. Once the project receives long-term lender financing, loans are repaid to the Fund—making those dollars available for new projects.
- 31 zero-interest loans made, totaling $2.4 million
- Leveraged approximately $300 million in housing (1,500 units)
- Created 2,728 jobs
- Loans range from $25,000 to $75,000 per project.
The Fund is flexible in light of changing housing market conditions, and funds supportive housing, rehabilitation of foreclosed and abandoned properties, and conversion of existing inventory for affordable uses.