National CORE creates opportunity for accelerating development of critically needed affordable housing.
National Community Renaissance of California (National CORE), one of the leading developers and providers of affordable housing in the country, closed yesterday on its issuance of $100 million in Taxable Bonds, Series 2022 (Social Bonds). The closing marks only the second time bonds have been made available by a nonprofit affordable housing developer in the United States.
National CORE will use the proceeds of the bonds to finance the acquisition, development, and preservation of high-quality affordable multifamily housing, in alignment with National CORE’s mission of breaking the cycle of poverty by providing affordable housing options and industry-leading social services to the underserved communities that need them most.
In 2021, National CORE became the only affordable housing developer in Southern California and only the second in the nation to receive an A+ rating from Standard & Poor’s (S&P) Global Ratings, one of the foremost U.S. providers of credit ratings. That achievement provided National CORE with access to new, non-traditional financial resources, reinforcing and accelerating the non-profit’s effort to address the chronic housing affordability crisis facing cities across the country.
“This is a game-changer for the affordable housing industry and, more importantly, those who struggle with housing instability. By accessing capital markets, we can dramatically accelerate the development and preservation of critically-needed affordable housing across the country,” said National CORE CEO/President Steve PonTell. “Stable housing strengthens community health, educational attainment, economic mobility, and quality of life. Our hope is that other affordable housing developers will follow National CORE’s lead by embracing this ground-breaking financing model.”
National CORE’s goals mirror the Social Bond Principles as promulgated by the International Capital Market Association of supporting affordable housing, socioeconomic advancement and empowerment, and access to essential services as a means of ending poverty, reducing inequalities and promoting sustainable cities and communities.
The U.S. continues to struggle with an affordable housing shortage, lacking 6.8 million rental homes for households with incomes at or below the poverty guideline (0-30% of area median income), according to a 2021 report by the National Low Income Housing Coalition. That shortage has nearly doubled from a 3.6-million-unit shortfall in 2019.
As one of the nation’s leading affordable housing developers, the award-winning National CORE owns and manages more than 7,500 affordable, senior, market rate, and special needs units in California, serving nearly 30,000 residents.
Importantly, National CORE’s innovative and holistic model provides families and seniors with safe, stable and high-quality affordable housing communities that offer industry-leading wraparound social services including preschool and afterschool programs, family financial training, and senior wellness resources.
“In the 30 years since we launched our operations, our mission has always been about serving others, and yesterday’s bond closing will allow us to serve so many more,” said National CORE co-founder and Board Chairman Jeffrey Burum. “This is a seminal moment for our industry and our organization in advancing that mission by helping to end the affordable housing crisis in our country.”
Underwritten by Morgan Stanley, the bonds are expected to mature in 2032.
National CORE’s bond closing comes two years after BRIDGE Housing issued $100 million in Series 2020 Sustainability Bonds, marking the first-ever taxable bond offering by a nonprofit affordable housing developer in U.S.
For more information about National CORE, please visit www.nationalcore.org.