Affordable Housing Initiative
What is it?
The Affordable Housing Initiative (AHI) is raising $300 million over three phases to fund the acquisition, pre-development, and construction of affordable housing. Using private financing, we’re able to bypass the lengthy, unpredictable application processes and stringent development standards which often make publicly funded affordable housing difficult and expensive to produce.
In partnership with developers owned or led entirely by women, people of color, and LGBTQ+ Angelenos, we’re building affordable housing in neighborhoods across L.A., making it easier for low-income residents to find safe, stable homes in their communities of choice.
What's the impact?
- Over $50M raised in Phase 1 for affordable housing
- Average development cost reduced by 40% and construction time reduced by 50-75%
- All AHI Phase I rents maintained at $1,000 or less
AHI Investor Report
Over the past 27 months, AHI has moved $175M of private and philanthropic capital to finance the creation of more than 1,000 units of affordable housing. Check out our latest investor report to learn how we did it alongside key partners like U.S. Bank, Apple, Conrad N. Hilton Foundation, Kaiser Permanente, Spiegel Family Fund, and Susannah Blinkoff & Jordan Corngold.
What's the impact?
- AHI has successfully moved $175M of private philanthropic capital into affordable housing to finance 1,011 units across L.A. County.
- AHI reduces the average total development cost from over $650,000 to under $300,000 per unit and the average construction timeline by over one year.
- Over the next three years, AHI will invest in over 60 rent-restricted developments, providing housing for more than 2,000 low-income L.A. County residents.
Affordable Housing Initiative Fund: An Analysis of Investors’ Needs and Priorities
United Way of Greater Los Angeles contracted Abt Associates to develop a tool to help potential investors decide whether the Affordable Housing Initiative (AHI) aligns with their impact investment priorities. To understand investor needs, Abt conducted an environmental scan to understand current practices in impact investing and interviewed investors identified by United Way. This report summarizes the findings and highlights investors’ priorities and preferences.
The Affordable Housing Initiative (AHI) Fund is an impact investment fund that utilizes private capital to develop small-scale, rent restricted housing for low-income L.A. County residents. By streamlining financing and offering flexible, below-market capital, AHI creates solutions for affordable housing development while directly contributing to the health, welfare, and quality of life of the residents in L.A. County. AHI reflects lessons learned from other housing efforts, and is in line with our strategic approach to testing new ideas with private capital and working to scale those ideas with public capital.
By partnering with development firms owned or led entirely by women, people of color, and LGBTQ+ individuals, AHI ensures that we are expanding the capacity of the housing development community and increasing access to affordable capital, all with the ultimate goal of making it easier for low-income residents to find safe, stable homes in their communities of choice.
Over the next three years, AHI’s investment in affordable housing solutions will invest in over 60 rent-restricted developments, providing housing for more than 2,000 low-income L.A. County residents. AHI’s commitment to mixed-income developments also helps to avoid the concentration of poverty within a specific geography and building. Over half of AHI’s buildings will provide access to social services for tenants to build stakeholder capacity and promote UWGLA’s mission to promote economic mobility throughout the community.
How can I get involved?
To find out how you or your organization can help fund AHI’s work, contact us.
