Impact fund manager SDS Capital has launched a financing strategy to provide debt to developers of US affordable housing.
SDS Impact Debt (SDSID), which is expected to finance over $1bn (€922m) in new housing units within 18 months, offers below-market permanent and construction financing, the manager said.
Los Angeles-based SDS Capital said SDSID, an asset-backed financing business line, is currently working on finalising six financings for 1,427 multifamily housing units.
Deborah La Franchi, SDS founder, said: “This exciting new expansion will enable SDS to have an amplified impact on our country’s lowest-income communities.”
Jason Riffe, managing director of SDSID, said: “We are launching a whole new one-stop programme in which affordable-housing developers can obtain both their debt and equity under one roof in states in which SDS is active. This eliminates the traditional and time-consuming process of applying for grants and other public funding that can take years to obtain.
“By offering a single source of financing with equity options and competitively priced debt, SDS is supplying the two key components of the capital stack, helping to dramatically reduce time and cost to bring an affordable housing project to market.”
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