LCF Invests Over $17 Million to Tackle London’s Affordable Housing Crisis

LCF Invests $17 Million to Tackle London’s Affordable Housing Crisis

Martha Powell

In response to London’s growing housing crisis, the London Community Foundation announced today the doubling of its financial assistance to $17 million to support the creation of affordable housing.

London currently has a housing shortage of 3,000 units and LCF President & CEO, Martha Powell said the Foundation believes housing is a basic human right. “Adequate, safe, and affordable housing should not be out of reach. The shortage of affordable housing in our community is at a crisis point. Solving this is a critical challenge that will require a collaborative effort.”

For the past six years, LCF has quietly demonstrated its leadership in this space through its Social Impact Fund – a $10 million revolving loan fund that has enabled the creation of 341 units of affordable housing to date. With the support of LCF donors and community partners, LCF is deepening its commitment to addressing the affordable housing crisis with a dedicated affordable housing fund of $17 million.

The affordable housing fund will support the growth of affordable housing in our community through donor contributions. This fund will offer flexible financing for community organizations interested in creating affordable housing as they often struggle to obtain financing from traditional financial institutions.

One of the primary barriers encountered when entering the affordable housing market is the often prohibitively expensive start-up costs. Before a project can begin construction and access traditional financing, capital is needed to fund assessments, land acquisition, and to cover planning and zoning expenses. This can result in a catch-22 situation, where money (bridge financing) is needed to begin the process but is normally only accessible after the first phase is completed. LCF is uniquely positioned to fill this niche. By providing low-interest, early-stage, flexible financing, LCF is able to help groups creating affordable housing get shovels in the ground faster.

Some of the organizations that have received assistance through LCF’s Affordable Housing Fund include Indwell, the Italian Seniors Project, Homes Unlimited, and Youth Opportunities Unlimited.

The Foundation also announced the establishment of a Housing Action Committee, chaired by London architect John Nicholson. The role of the committee will be to identify organizations, both community and for-profit, which have an interest and capacity to help create affordable housing but need more information and financial assistance to develop and deliver on their plans.

“We hope to help those already providing housing solutions, and those who may be able to help,” says Nicholson. “We are also interested in timely, accelerated solutions, and therefore interested in working with others to find ways to expedite the front end of the housing delivery. There is very good work being done in this sector locally, and interesting recent announcements. The Foundation is seen by others across the country as a leader in facilitating delivery. We look forward to working on this further.”

“We believe affordable housing is part of a deep socioeconomic investment in the health and well-being of our community,” says Powell. “Our Vital Signs report has identified this as an urgent community need and we are responding.”