Investor Alignment Tool

Overview: The Investor Alignment Tool is an instrument for potential AHI investors to use to understand how closely their investment priorities align with AHI Fund priorities. The tool compares an investor’s priorities with characteristics of the AHI Fund by generating a match score.

Using the Investor Alignment Tool

This instrument focuses on nine dimensions of impact. They are:

Location
Environmental Sustainability
Target Group Served
Innovative Solutions
Reputation
Organizational/Investment Values
Fund Performance
Investment Period
Fund Management

Across the nine dimensions, allocate a percentage (0 – 100 percent) for how important each dimension is for your investment strategy. The total across all dimensions should equal 100 percent.

Investment Entity / Person

Name

Job Title

Dimensions of Impact

Dimension	Investor Weight for Dimension
Location	%
Environmental Sustainability	%
Target Group Served	%
Innovative Solutions	%
Reputation	%
Organizational/Investment Values	%
Fund Performance	%
Investment Period	%
Fund Management	%
Total	100%

Each dimension has several variables that ask for your priority rating: Rate each dimension of impact on a scale from 1-5 based scale. 1 is not important at all, 5 is very important (see scale). Some dimensions ask for you to select the most important factor to you and rate that factor while some ask you to rate several factors.

Investor Priority Rating	Scale
Very important	5
Important	4
Neutral	3
Somewhat important	2
Not important at all	1
Characteristic not selected	0

	Investor Priority Rating
Location Select most important item
Housing investments are in a high-priority location (e.g., Los Angeles County, Southern California, California).	most important
The investment serves a low-moderate income census tract.	most important
Environmental Sustainability Rate each item
Includes environmentally friendly construction practices and materials (e.g. solar panels and/or LEED certification).
Prioritizes housing investments in walkable areas with easy access to transit.
Target Group Served Select most important item
Housing primarily serves people with extremely low income - 0-30% AMI (Area Median Income).	most important
Housing is primarily mixed-income, providing affordable housing to a range of incomes (30% AMI-120% AMI).	most important
Housing is primarily workforce (80-100% AMI).	most important
Investments must have a requirement that ensures long-term affordability.	most important
Innovative Solutions Rate each item
The fund invests in innovative development and/or construction approaches.
The fund uses financing approaches that do not rely on government funding to build affordable housing.
Lessons from implementing funding model have the potential to inform broader policy change.
The investment model can be replicated and scaled.
Reputation Rate each item
The fund sponsor has a solid reputation for project execution and partnerships in the community.
The fund sponsor has a long-standing commitment to responding to housing insecurity and homelessness in the community.
Organizational/Investment Values Rate each item
All subcontractors are paid a living wage
Developers are minority owned or led. Note: AHI defines, 1) Minority-led developer firms as firms with at least 51% of workers identifying as minority individuals. 2) Minority developers are defined as Black, indigenous and people of color (BIPOC), Asian, women and LGBTQ+ individuals.
Fund Performance Select most important item
Annual fund return can be significantly lower than market rate returns (anything > 0%).	most important
Annual fund returns can be 25%-75% of market rate returns.	most important
Annual fund returns need to match market rate returns.	most important
Investment Period Select most important item
Capital will be returned to investors within 1-3 years.	most important
Capital will be returned to investors within 3-5 years.	most important
Capital will be returned to investors within 5-7 years.	most important
Capital will be returned to investors within 7-12 years.	most important
Fund Management Select most important item
Investments mitigate risk by diversifying locations.	most important
Investments mitigate risk by diversifying developers.	most important
Investments have a clear exit strategy for repayment.	most important
Investments are targeting acquisition/predevelopment financing.	most important
Investments are targeting construction financing.	most important
Investments are targeting permanent financing.	most important
Financial feasibility of the proposed projects.	most important

You may leave this window open and come back to it, and you may calculate your score multiple times. If you close the window and then come back, the form will be blank again.