Investing in Social Impact
In these times of shifting economic sands, clever people who want to improve the housing picture are coming up with new ways to get the resources needed to make change happen. One of these ways is known as social impact investing, and it is described in this article from the MacArthur Foundation’s How Housing Matters site.
Social investing uses private resources for public good, with a caveat–that the investors get their payoff only if the project has a demonstrable social payoff. This approach supports organizations that, like Piedmont Housing, use performance metrics in their projects, generating a track record of success. We’re not sure if this kind of financing will ever play a role in our local housing sector, but we are looking at creative financing to get more affordable housing built.