Investing in Affordable Housing: A Strong Asset Class

Conclusion This study was just the beginning of a larger conversation about investment in affordable housing. Given the continuing confusion between workforce housing, affordable housing and NOAH, the industry must become better informed about the differences in investing in each. Those in the affordable housing equation must also seize the opportunity to work with housing advocacy and governmental bodies to push for eased entry into tax benefit and other stimulus programs to fund the creation and preservation of future affordable housing. The study shows that investors with institutional capital are familiar with meeting guidelines for sustainable practices or ESG criteria. However, meeting ESG goals or set-aside requirements are never the only benefit of building and preserving America’s affordable housing. To help generate more interest, it will be important for those that have experienced success to share their stories through data, case studies, events, hands-on experiences and other forms of storytelling to help educate investors and bring them into the fold. “It is hard to argue that housing is not a fundamental human need. Decent, affordable housing should be a basic right for everybody in this country. The reason is simple: without stable shelter, everything else falls apart.” —MATTHEW DESMOND, AUTHOR OF EVICTED: POVERTY AND PROFIT IN THE AMERICAN CITY

Perceptions of Affordable Housing Investment Presentation by Kingsley Associates

Does your company have an impact investment policy?

Goals • Gauge investor perceptions of a ff ordable housing: Current or future investment Factors in fl uencing investment decisions How to generate more interest • Broaden the conversation about a ff ordable housing Project Overview Methodology • Phone interviews: 31 respondents. • Respondents are primarily institutional investment management fi rms. • All responses anonymized for con fi dentiality reasons.

“Yes, we de nitely have policies and directives based upon developing communities within urban settings and making positive changes to those communities.” “From my understanding, no, but obviously we are big on ESG (Environmental, Social, and Governance) in all aspects of our business.”


Yes No




Perceptions of A ff ordable Housing Investment 2

What are your clients’ primary motivations for investing in this sector?

Do you advise clients to invest in a ff ordable housing?

Yes. Types of Investment: • Required as a Set Aside: 59% • Subsidized Low-income: 36% • Naturally Occurring A ff ordable: 32%



“De fi nitely to fi ll ESG requirements, as well as to fi nd favorable returns. If we see that there is a need for a ff ordable housing and we can fi nd a way to make it accretive as well as promote ESG, that’s what we're trying to do.”


No, but plan to in future


No, and no plans in future



(continued on back page)

Perceptions of A ff ordable Housing Investment 4

Perceptions of A ff ordable Housing Investment 6


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