Impact with a Social Return on Investment

NPHS’ Community Investment Trust was established in 2015 to strategically attract and deploy community investments to advance affordable housing, community lending, and economic development in the Inland Empire. The Trust serves as the NPHS’ CDFI Fund which leverages both public and private sector investments to finance the organization’s Affordable Housing Fund to support housing acquisition and development, capitalize its Community Lending Fund to provide financial products aimed to serve low–to-moderate income families, and expand the Social Innovation Fund to support NPHS’ social enterprise efforts.

Expansion of the Trust will allow NPHS to address key housing and community economic development issues in the Inland Empire, including the preservation of quality, affordable rental housing, sustainable homeownership opportunities for first-time homebuyers, and the creation of innovative financial products.

Affordable Housing Fund

The Community Investment Trust finances NPHS’ Affordable Housing Fund which supports the creation of single-family homes for purchase, and the preservation of multi-family rental housing through the Neighborhood Revitalization & Affordable Rental Housing Programs.

Through NPHS’ Neighborhood Revitalization Program, REO foreclosed properties are converted into safe and healthy homes for first-time homebuyers. These homes are sold exclusively to low-to-moderate income homebuyers in order to increase the rate of homeownership in neighborhoods that were hard-hit by foreclosures. Over the last 3 years, NPHS has acquired, renovated and sold 51 homes to low-and-moderate income first-time homebuyers.

NPHS anticipates renovating and selling 75 homes by 2020 as part of the Neighborhood Revitalization Program.

The Affordable Housing Fund supports the acquisition and preservation of quality multi-family housing as part of NPHS’ Affordable Rental Housing Program. To address the rising cost of rental housing in the Inland Empire, the program makes available single-family and multi-family homes for rent to low-income families who are not yet ready for homeownership. Recently, the Trust financed the acquisition of two four-unit multi-family properties in the City of San Jacinto.

NPHS’ goal is to acquire and rehabilitate a total of 150 rental units by 2020.

Community Lending Fund

As a Community Development Financial Institution (CDFI), NPHS provides consumer lending products that are capitalized by the Community Investment Trust through the Community Lending Fund. The Community Lending Fund supports NPHS’ Homeownership Finance Program which includes the Opportunity Down Payment Assistance loan to help LMI first-time homeowners afford the cost of homeownership. Additionally, the fund supports NPHS’ Home Improvement Financing Program that provides qualified homeowners access to the new Sojourner Solar Loan and Renaissance Home Improvement programs.

Social Innovation Fund

Driven by the needs of their customers and supported through the innovative leadership of their board and executive team, NPHS has methodically transformed into an entrepreneurial organization through the adoption of revenue generating social enterprise models. NPHS’ leadership understands the changing economic environment with limited sources of grant funding, and has therefore committed to integrating a sustainable business model in order to lower the cost of doing business while increasing their sources of revenue and making a greater impact in the community.

Recently, NPHS launched two new revenue generating programs – the Sojourner Solar Panel Financing Program, and the Commercial Realty Program.  Both programs are based on for-profit models offering fee-based services for purchasing and installing solar panels, and providing commercial realty representation including space planning services to small business owners.  Profit revenues generated from these social enterprises are reinvested back into the Social Enterprise Fund to ensure the financial health of the organization, provide a return on investment to investors, and seed the launch of additional viable social enterprises in the future.

Investment Opportunities

NPHS is seeking to raise $10 million in equity investments over the next three years to capitalize and expand the Community Investment Trust to improve affordable housing, community lending, and economic development in the Inland Empire.

Financial institutions, foundations, social impact investors, and the public sector interested in investing in the Community Investment Trust may contact Victor Ramirez, NPHS Vice President of Strategic Advancement, via email at victor@nphsinc.org or call (909) 218-8483.