BRIDGE Housing has raised $92 million to accelerate its efforts to acquire and develop affordable housing on the West Coast.
The nonprofit announced the first close of its BRIDGE Housing Impact Fund I, which was launched last year and is on course to raise $350 million of equity, unlocking approximately $1 billion in investment capital.
The investment will focus on acquiring properties in California, Oregon, and Washington with expiring affordability restrictions, as well as market-rate units for conversion to regulated affordable housing, serving those earning up to 80% of the area median income (AMI), and workforce housing, serving those earning between 80% and 120% of the AMI. In select cases, the Impact Fund may consider new-construction projects.
“This first close is a testament to the leadership and commitment of our founding investors who embrace BRIDGE’s mission and have confidence in our ability to deliver meaningful impact at scale,” said president and CEO Ken Lombard. “By pairing institutional capital with BRIDGE’s own balance sheet, we are working alongside our partners to preserve long-term affordability and expand housing opportunities in some of the nation’s most challenging markets.”
The first close marks the beginning of the fund’s acquisition phase, with BRIDGE Housing anticipating the purchase of approximately 20 properties totaling an estimated 3,500 units. Many of the acquisitions will enable BRIDGE to protect affordable units in West Coast cities that are at risk of losing income restrictions and becoming eligible for market-rate rents in coming years.
A number of institutional and mission-aligned investors are involved in the initial close, including KeyBank, BMO, Capital One, U.S. Bank, Century Housing, and PGIM, along with an investment from BRIDGE Housing itself, funded in part by proceeds from a recent unrestricted donation from Yield Giving, MacKenzie Scott’s philanthropic organization.
Founded in 1983, BRIDGE Housing has participated in the creation of more than 23,000 affordable homes in California, Oregon, and Washington, with a total development cost of $6.8 billion. Its $5 billion portfolio totals more than 15,500 apartments that are home to nearly 34,000 residents, with more than 8,000 additional units in the development and acquisition pipelines.