Ethical Investment for New Development

1
Ethical Investment for New Development

• Tessa Hebb
• Carleton Centre for Community Innovation
• Carleton University
• Ontario Non-Profit Housing Association
• Annual Conference,
• Ottawa, October 17th 2008

2
Presentation Overview

• New investors in affordable housing
• The Blended Value Continuum
• US models of affordable housing investment
• Barriers to investment in affordable housing in
  Canada
• New Canadian models

3
The Growth of Targeted investment

• Institutional investors responsible investment
  practices.
• Growing use of targeted or pro- active investment
  policies by pension funds.
• Ancillary benefits double and even triple
  bottom line investing.
• Based on market rates of return.

4
Blended Value Investment

• Financial, social and environmental returns.
• Of interest to foundations, faith-based
  organizations, charities, and individuals.
• Prepared to take below market returns.
• Called Program Related Investment.

5
Blended Value Continuum
Source F.B. Heron Foundation
6
US Models of Investment in Affordable Housing

• US CDFIs - Financed the construction or
  rehabilitation of nearly 27,000 affordable
  housing units.
• TIAA-CREF SRI investment in Shorebank
• CalPERS CURE investment in Bridges Affordable
  Housing
• NYCERS ETI affordable housing
• Calvert Foundation Community Investment Notes

7
New Instruments for Affordable Housing Investment

• Community Reinvestment Fund
• Common Ground NY
• Calvert Foundation
• Shorebank

8
Opportunities to Build Financial Tools for
Affordable Housing

• Need for investment intermediaries and vehicles
• Government-backed bonds such as Collateralized
  Mortgage Obligation Bonds
• Government guarentees
• Long term patient capital funds

9
New Canadian Models

• VanCity Credit Savings Shared Growth Term Deposit
• AFL-CIO Housing Investment Trust
• Alterna Community Alliance Housing Fund

10
Conclusion

• There is a continuum of capital sources for
  investment in affordable housing .
• Government will continue to play an important
  role in affordable housing financing.
• New models can help leverage new sources of
  institutional investment in affordable housing.

11
Conclusion

• For more information Please contact
• Tessa Hebb
• Carleton Centre for Community Innovation
• thebb_at_attglobal
• or see our web site
• http//www.carleton.ca/3ci/