Fund raises over $5 million; The Arthur M. Blank Family Foundation an early investor

The Atlanta Affordable Housing Fund, LP (AAHF), a social impact fund designed to provide low interest rate financing for affordable housing projects, has announced its initial close after raising $5.1 million from high-net-worth individuals, foundations and corporations.

The mission of the fund, which is targeted to ultimately raise $25 million, is to deploy low-cost capital to qualified developers and sponsors who are either creating or preserving affordable housing in Atlanta. AAHF is led by some of Atlanta’s most seasoned real estate professionals, including board members Marc Pollack, David Allman and Egbert Perry.

The initial closing signals that the fund is ready to begin investing in affordable housing projects in Atlanta.

“The current complexities of COVID-19 and the ongoing fight against racial inequities underscore the need to make safe, quality housing affordable for all,” said AAHF Executive Director Ashani O’Mard. “If a family is anchored in a safe and stable home, stronger paths to economic and educational opportunity and overall well-being are created.”

Amid the pandemic, the City of Atlanta is facing budget shortfalls, making it impossible to move forward on a $200 million proposed Housing Opportunity Bond to support affordable housing. “The needs for affordable housing are greater than ever, as are the challenges around creating it,” said board chair David Allman. “We want to be a conduit to help the City of Atlanta and other organizations execute their plans for affordable housing. Our fund can be the last piece of the puzzle, and help deals get done. We are entrepreneurial and flexible, and we look forward to deploying private capital to help developers and sponsors to create and preserve affordable housing.”

The fund provides a mechanism for individuals, corporations and foundations to invest in affordable housing in metro Atlanta. Investors will receive a return, though lower than what they would receive in a market-rate real estate investment fund. The Arthur M. Blank Family Foundation was an early investor. Fund-raising efforts were launched in January.

“As the Blank Family Foundation continues our long-standing efforts for racial equity, affordable housing in Atlanta is a huge challenge that requires both public and private partners working closely together,” said Penelope McPhee, President of The Arthur M. Blank Family Foundation. “Support of AAHF is a critical step in creating a path forward on this issue, and we are grateful for the many partners investing in the vision, providing expertise, and committing to solutions alongside us.”

AAHF is aligned with HouseATL, an initiative driven by civic leaders to address the City of Atlanta’s affordable housing shortage.AAHF is also supported by the Atlanta Real Estate Collaborative (AREC), a nonprofit and the creator of Open Doors, which has housed thousands of homeless persons in metro Atlanta.

For more information about AAHF, visit www.aahfund.com.