New Financing Model Unlocks Millions to Build Affordable Homes

Press Release from The San Diego Foundation

May 16, 2019 – San Diego, CA – Today, Mission Driven Finance announces that investors have contributed more than $1 million to a new impact investing fund that will support the construction of affordable homes for low-income families. Investors concerned about the region’s housing crisis contributed to Mission Driven Finance’s Homebuilding Investment Fund in order to accelerate San Diego Habitat for Humanity’s construction in Logan Heights, El Cajon, National City and Encinitas. The Fund is targeted to close at $2 million in June 2019.

In 2018, Mission Driven Finance launched the Homebuilding Investment Fund to connect socially conscious investors with a meaningful way to address the region’s housing crisis. Unlike traditional investment firms, Mission Driven Finance develops opportunities for enterprises doing good to access the capital they need to create positive impact in their communities. Investors with the firm measure return in both financial gain and community benefit — such as this much-needed housing for families struggling to make ends meet.

The Homebuilding Investment Fund functions much like a line of credit for San Diego Habitat, allowing the organization to bid competitively for land, develop housing and jump start construction. This means San Diego Habitat can acquire and build new home sites more quickly, while still empowering families earning less than the Area Median Income to build equity as they purchase the homes through affordable 30-year mortgages.

Investors in this fund are a mix of direct private investors, foundations, and donor-advised fund holders at Jewish Community Foundation of San Diego and The San Diego Foundation.

Potential accredited or charitable investors can learn more about the Homebuilding Investment Fund at www.missiondrivenfinance.com or through partners at Jewish Community Foundation and The San Diego Foundation.

Quotes:         

  • “When we launched the Homebuilding Investment Fund, we knew this would be an exciting way to engage the local community to advance affordable homeownership for families,” says Heather Marie Burke, director of investor relations at Mission Driven Finance. “Investors jumped at this opportunity to support their neighbors through investments. The best payoff is seeing community partners from every walk of life come together to create change on a pressing issue in our region.”
  • “Mission Driven Finance’s Homebuilding Investment Fund provides our donors a way to make a tangible impact on the affordable housing crisis in San Diego,” says Beth Sirull, president and CEO of Jewish Community Foundation. “And Jewish Community Foundation donors are making this impact in a relatively new way – by investing, rather than through charity. Capital will return to donors’ funds at Jewish Community Foundation and they can choose to reinvest it for more good or to grant it to a charity of their choice at that time. To offer our donors a way to effectively invest in their community and support Habitat for Humanity’s proven model brings us great satisfaction.”
  • “Impact investing with Mission Driven Finance provides donors at The San Diego Foundation with an innovative opportunity to address major community needs with social investment that is recoverable and re-invested for even greater community benefit,” says Brian Zumbano, vice president of development of The San Diego Foundation.
  • “My great grandparents had a home on Island Avenue and lost it in the Depression,” says Olympia, a new Habitat for Humanity homeowner. “For us to plant roots again in this community means a lot. Now I have a home to raise my children, which closes a circle that was broken so many years ago because of a broken economy.”
  • “For over 30 years we’ve been building and selling homes to help families thrive,” says Lori Holt Pfeiler, president and CEO of San Diego Habitat for Humanity. “Working with Mission Driven Finance was the first time someone reimagined a financial structure to make sweeping local impact with us. Their support not only meets our current needs but positions us for future growth.”

How to get involved: Interested current or prospective donors can learn more by contacting Foundation Vice President Brian Zumbano at BrianZ@SDFoundation.org or 619-235-2300.


About Mission Driven Finance

Mission Driven Finance is a private impact investment firm and Certified B Corporation dedicated to building a financial system that ensures good businesses have access to sufficient, affordable capital. Built from the ground up with a single purpose—to make it easy to invest in your community—we actively develop impact investment products to close financial gaps that close opportunity gaps. Discover how easy it is to invest in your community at missiondrivenfinance.com.

About The San Diego Foundation

The San Diego Foundation maximizes the impact of your charitable giving. We mobilize philanthropic resources to advance quality of life, increase social impact and champion civic engagement. For more than 40 years, The Foundation and our donors have granted more than $1.1 billion to grow a vibrant San Diego region. Learn more on our website, and consider a donation to the Fund for the Future Endowment which supports San Diego community needs for good, forever.

About San Diego Habitat for Humanity

People in our community partner with San Diego Habitat for Humanity to build or improve a place they can call home. Habitat homeowners build their homes alongside volunteers and pay an affordable mortgage.  With our help, Habitat homeowners achieve the strength, stability, and independence they need to build a better life for themselves and their families. Habitat for Humanity exists through volunteer labor and contributions of money, land and materials, including purchases and donations to the ReStore, Habitat’s discount home improvement retail center. For more information, visit http://www.sandiegohabitat.org/ or call 619-283-HOME (4663).

Contact:

Shannon Sneade, Mixte, 702-540-8108, shannon@gomixte.com,

Justin Nunez, The San Diego Foundation, 336-254-7056, justin@sdfoundation.org