How San Franciscans secured $9.4 million in affordable housing 🌁
V.1, N.17
Something big is brewing in California, in a good way. Our lead story is about the San Francisco Community Land Trust acquiring a 40-unit apartment building in the Tenderloin District of the City for $9.4 million. That money came from the Self-Help Credit Union, the Local Initiatives Support Corporation (LISC), and lots of private donors in the area concerned about affordable housing. The $1.37 million in contributions, small and large, served as the critical down payment for the deal.
Too many people assume donations and investments live in separate universes. But as Jed Emerson, a thought leader on impact investing, counseled decades ago, both are types of capital. More importantly, they can and should be blended whenever necessary. Another example of this comes from our newest partner, Slow Money. Its Beetcoin program uses donations to create local investment funds, which then issue 0% interest loans to small farmers and local food businesses. The model obviates the need for expensive securities filings and lawyers. Creative community developers should take note: You can have a significant local investment fund tomorrow with this kind of structure.
We also have a story about how The Change Company, a unique CDFI in California borrowed a play from mainstream financial institutions by closing the first ever securitization of residential home loans originated entirely by a CDFI. Investors in the $297 million offering included socially responsible asset managers and banks seeking to finance home loans to credit-worthy Black, Latino, and low- and moderate-income borrowers and communities. (What needs to happen next, of course, is that someone needs to reissue these securities in small enough denominations so that grassroots investors can participate.) Another story makes a compelling case that if San Diego wants to really accelerate adoption of solar energy, it should make its local utility city-owned.
As always, if you want to do more than read, if you want to act and change your community, please sign up to become a “Main Street Champion” or find a Champion in your community.
– Michael Shuman, Publisher, The Main Street Journal
NEWS
With Donations As Small As $20, Land Trust Makes $9.4M Affordable Housing Buy In San Francisco, Next City (February 1)
A First Ever Residential Mortgage Backed Securitization Comprised Entirely of CDFI Originated Loans, Business Wire (February 1)
San Diego Utilities Will Continue To Skyrocket If Investor-Owned, The San Diego Union Tribune (February 10)
PARTNER VOICES
Why Cutting Edge Capital Partnered With SVX To Launch An Impact Platform, Cutting Edge Capital (February 3)
The Growth of Main Street Capital with Jason Wiener, Capital Insight Podcast (January 24)
NC3 Releases First Annual Report for 2021, National Coalition for Community Capital (January 25)
EVENTS
Equitable Home Ownership: Reducing The Wealth Gap Through Shared Ownership Models — Webinar. Wednesday, February 23, 5-6:15pm ET. In partnership with Purpose, Trust Neighborhoods, Folks Capital, The Guild, and Mission Driven Finance.
Financing the Future of Vera Brown Farm – Webinar. Thursday, February 24, 7-8pm ET OR Friday, February 25, 1-2pm ET. Slow Money is hosting two invitation-only virtual convenings to explore how Down East ROAD can coordinate one of the first reparative land loans from Foodshed Capital's Black Farmer Equity Fund.
Remaking the Economy: Redefining Risk – Webinar. Thursday, March 10, 2pm ET. Speakers challenge traditional “risk” assumptions and discusses strategies that they implement to shift risk to those who can afford to bear it and facilitate the building of wealth in low-income communities and communities of color.
The ABCs Of Local Investing With Michael Shuman – Webinar. Wednesday, March 23, 4pm ET.
Shifting Power Through Place-Based, Community-Governed Investments – Webinar. Wednesday, March 23, 1:55-2:40pm ET. Several presenters, including Executive Director of Transform Finance Andrea Armeni, will showcase community engaged approaches to create social change.
ICYMI
A Starter Guide On Self-Directed IRAs, MSN (February 2)
What Is A Worker Cooperative?, NNY360 (February 1)
Local Government American Rescue Plan Act (ARPA) Investment Tracker, Brookings (February 3)
JOBS BOARD
Project Equity is seeking: a Program Specialist, Public Sector Engagement. Apply by March 28, 2022.
Candide Group is seeking: a Managing Director of their Climate Justice Fund. Location: Bay Area preferred; open to other geographies with prior approval.
Fair Food Network is seeking: a Director of Institutional Funding, a Business Operations Manager, a Senior Director of Impact Investing, and a Program Ambassador.
Mission Driven Finance is seeking: a full-time Client Operations Associate, Real Estate Director, Senior Associate of Knowledge Systems, and Staff Accountant (all positions can be fully remote).
BECOME A MAIN STREET CHAMPION
Have you always wanted to start a local investment club? A website of local investment offerings in your community? A local investment study group? Whatever your interest or ambition, we invite you to “go public” to help others in your region find you, scheme with you, and start a local investment movement in your community. Our goal is to identify dozens, then hundreds, then thousands of Main Street Champions like you across America. We already have Main Street Champions across the U.S., from San Luis Obispo, CA to Providence, RI, and even Australia! Together, we can move our hard-earned savings from Wall Street back into our communities. Fill out the intake survey below to join this first cohort!
SOME OF The MSJ’s VINTAGE ISSUES
About The Main Street Journal
The Main Street Journal aims to catalyze the movement of $50 trillion from Wall Street to Main Street to facilitate economic development and economic justice. It’s sponsored by the National Coalition for Community Capital, with a grant from the Heron Foundation. We welcome feedback about everything, from our design to content. And we welcome suggestions of other groups to involve as partners, and other information to include. Please send ideas to Sophia Leswing at sophia@main-street-journal.com.
PARTNERS
We welcome any nonprofit or for-profit committed to local investment as a partner. If your organization is interested, please contact Sophia Leswing at sophia@main-street-journal.com.