LCF urges developers of affordable housing to respond to London’s growing housing crisis

LCF urges developers of affordable housing to respond to London’s growing housing crisis

Up to $20 million in financing available through LCF’s Affordable Housing Fund

The second Residenza Affordable Housing building, Residenza Ortona, currently under construction at 1090 Hamilton road.

June 4, 2020

London’s affordable housing crisis is only expected to get worse with COVID-19’s impact on the economy. That’s why London Community Foundation (LCF) is proactively reaching out to potential developers of affordable housing who may need access to financing to get started.

“We know that there are organizations including church groups, non-profits as well as private developers who are interested in creating good, affordable housing for individuals and families in our community. They just don’t have the finances to begin the process,” says John Nicholson, Chair of LCF’s Housing Action Committee. “That’s where LCF can help.”

In January of this year, LCF launched a $20 million Affordable Housing Fund to assist organizations and developers creating affordable housing by providing flexible, low-interest financing.

“The pandemic has created a lot of hardship for our community’s most vulnerable. Missed paychecks and inability to pay rent have become a reality for many,” says Nicholson. “This has increased the urgency of the situation which is why LCF has decided to be more proactive in its approach.”

The need for affordable housing is also being felt in Middlesex County. A report by the municipality of Strathroy-Caradoc administration found that community needs higher density with more housing options, including apartments and town houses.

“Part of what makes smaller communities so attractive is that they are places where people of different incomes and housing needs live as neighbours,” says Joanne Vanderheyden, Mayor of Strathroy-Caradoc. “Affordable housing helps foster that small-town spirit.”

The challenge is many groups and organizations entering the affordable housing market often face a catch-22 situation, where money 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.

LCF can provide individual loans of up to $5 million. The financing can support organization costs, incorporation, project planning, re-zoning, land acquisition, site development, and interim construction. The Foundation is encouraging faith groups, ethnic groups, service clubs, existing non-profit and co-op housing providers, as well as private developers in London and Middlesex County who are interested in creating affordable housing to apply.

A proven leader in the affordable housing space for the past six years, LCF has provided financing to organizations such as Youth Opportunities Unlimited, Indwell, Homes Unlimited, Zerin Place, Gateway Church, and Residenza Affordable Housing, to name a few. What’s unique about working with LCF is their collaborative approach and ability to be ‘first in’ investors.

“If you go to a bank asking to borrow money to buy some land that won’t be generating income for a couple of years, they’ll look at it as a bad investment,” says Claudio De Vincenzo, Residenza Affordable Housing board member and past loan recipient. “We pitched our idea to LCF and they saw our vision, and believed in it. We’re really happy with the partnership we’ve made with them.”

The call for expressions of interest is open until Wednesday, July 15.

To submit an expression of interest or find more information, visit www.lcf.on.ca/affordable-housing or contact Vijay Venkatsean, VP Finance & Operations.