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.
- A total of $4.9 million loaned for 29 housing projects across Arizona
- Leveraged approximately $512.8 million in housing (2,937 units)
- Created over 3,000 jobs
- Offers loans of up 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.