National Community Renaissance (National CORE), a leading developer and provider of affordable housing in the country, has closed on the issuance of $100 million in taxable 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 bond proceeds to finance the acquisition, development, and preservation of high-quality affordable multifamily housing.
In 2021, it received an A+ rating from Standard & Poor’s Global Ratings, an achievement that provided the organization with access to new, nontraditional financial resources, reinforcing and accelerating its effort to address the 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 and 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.”
Based in a Rancho Cucamonga, California, the nonprofit 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 after-school 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.
The bond closing comes two years after San Francisco-based BRIDGE Housing issued $100 million in Series 2020 Sustainability Bonds, marking the first-ever taxable bond offering by a nonprofit affordable housing developer in the U.S.