What Makes a Good Social Impact Fund Application?
What Makes a Good Social Impact Fund Application?
“London Community Foundation’s Social Impact Fund has proven to be an excellent source of both financial and social returns. It uniquely positions us to support affordable housing initiatives like Homes Unlimited, just one of the projects LCF has invested in to tackle London’s housing crisis,” said Vijay Venkatesan, Vice President of Finance and Operations at London Community Foundation in 2019, just after a $1.62M loan to Homes Unlimited for an affordable housing development on Pond Mills Road was approved from our Social Impact Fund.
The Pond Mills development opened in May 2023, and we’re taking a look back at five aspects of the project that made it such an attractive investment for London Community Foundation’s Social Impact Fund.
It Identified a Problem
With vacancy rates remaining low and rents continuously increasing, Homes Unlimited approached London Community Foundation in 2019 requesting a loan for their development on Pond Mills Road, which would increase London’s housing supply and offer a mix of market rate, affordable, and accessible units.
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|---|
| Average 1-Bed Unit Rent | $811 | $852 | $889 | $928 | $1,012 | $1,052 | $1,139 |
| Average 2-Bed Unit Rent | $978 | $1,018 | $1,059 | $1,105 | $1,124 | $1,226 | $1,412 |
| Vacancy Rate | 2% | 1.6% | 2% | 1.7% | 3.2% | 1.7% | 1.6% |
Data from Statistics Canada
The development is now open and tenants are living in the units - over half of which are affordable (80% of market rent or lower) and 44 of the 110 units are accessible.
Speaking to the benefits of the affordable and accessible units when applying for the loan, Jim Foote, vice-president of Homes Unlimited, told us: “Those who will benefit are families and households of modest means, persons with disabilities and limited mobility, and women and children coming from shelter housing.”
It Provided a Solution
The Pond Mills site presented an excellent location for this development. Not only was it in a mature neighbourhood with access to schools, shops, health care, and public transit that could support the incoming tenants, but it also already had the zoning for the construction of 110 units already in place.
Homes Unlimited also proposed an energy-efficient building with fewer greenhouse gas emissions than the 2015 National Energy Code of Canada for Buildings or National Building Code standards, and up to 41% less energy consumption, which further helps the units' affordably for the tenants.
It Benefited from Partnerships
“To ensure all residents will experience an enhanced quality of life in a safe and affordable community, Homes Unlimited has partnered with service agencies to also provide special needs housing,” Jim told us.
These include Dale Brain Injury, who offer flexible 24/7 services to adults with acquired brain injuries with the aim of improving quality of life, and Participation House, who support individuals with developmental disabilities and/or complex physical needs to live in their own homes.
Further to this, some units in the development have been provided for Anova, a provider of safe places, shelter, support, counselling, and resources for abused women and their children, and Community Living, who supports over 1,000 people with developmental disabilities every year.
It Aligned with Our Work
Seeing that the project covered so many of the UN Social Development Goals (SDGs), and our Vital Signs issue areas that localize the SDGs, the project was in a strong position to receive a loan.
Given that the loan was to help with the land purchase and the upfront costs of obtaining site plan approval and the preparation of building permit drawing, the loan also fell in line with the Social Impact Fund’s focus on seeding projects and encouraging innovation.
It Ensured a Legacy
London Community Foundation values sustainable philanthropy, and our approach to impact investing is no different. Seeing that plans are in place to ensure that an affordable or supportive housing development can maintain its wrap-around services long-term, or understanding what future doors the loan would open to a social enterprise is important to the Social Finance Committee members who assess the loan applications.
In the instance of the Pond Mills development, the mixed-income model meant that profits from the market rent units could support the services provided to tenants who need them in the affordable units. Some services are also being provided for free by partners who are also benefiting from being involved in the project, which speaks to the power of partnership work when trying to make a positive impact.
“This is important to the city. We’re short of rental properties and this offers two legs to the stool — increased supply with more units and affordable units,” Jim told the London Free Press after the development opened in 2023.
Learn more about other loans granted by our Social Impact Fund, and how to apply.