The Home Funders (HF) collaborative was formed in 2003 to address the unprecedented crisis in affordable housing for very low income families in Massachusetts. Several of the area’s private funders came together based on the belief that without adequate housing, all other social investments are at risk.
Home Funders developed an innovative product to address this growing problem – pooling private dollars to make low-interest loans and grants to build very affordable housing. The founding members pooled significant capital in the form of Program Related Investments (PRI) and grants for an initial total of $16 million. That loan capital grew to over $21 million with additional contributions. The funds are loaned to affordable housing projects through two experienced housing finance intermediaries – Community Economic Development Assistance Corporation (CEDAC) and Massachusetts Housing Partnership (MHP) at very low interest rates for a range of predevelopment and development uses. In return for the below-market rates, developers commit to set aside at least 20% of the project’s units for extremely low income families.
The substantial and targeted pool of Home Funders capital leverages existing housing resources to increase the supply of housing available to the lowest income families in Massachusetts. The Fund is a unique resource for the development community because it provides financing at a low interest rate for an extended period of time, making the funding easy to use and compatible with the existing network of resources.