Housing Impact Fund Raises More Than One Hundred Million to Preserve Fifteen Hundred Affordable Apartments in Charlotte

Housing Impact Fund raises more than $100M to preserve 1,500 affordable apartments in Charlotte

Housing Impact Fund (HIF) announced the close of its third fund, raising more than $100 million in private sector capital to acquire, renovate and preserve 1,500 apartment units that serve roughly 5,000 low- and moderate-income residents in the Charlotte market. The fund focuses on Naturally Occurring Affordable Housing, or NOAH, preserving existing communities near jobs, transit and services that might otherwise be redeveloped into higher-cost housing.

Since 2020 HIF has acquired nearly 2,000 apartments across 11 communities. Each acquisition is paired with renovations and a 20-year deed restriction that keeps units affordable. The restrictions designate 30 percent of units for households earning less than 30 percent of area median income (AMI), 50 percent for households under 60 percent AMI, and 20 percent for households under 80 percent AMI. HIF reports that this allocation places a larger share of units at the lowest income levels than most local housing efforts, and that its 11 acquisitions used less than half of the average local government funding historically provided for housing support.

The new fund follows prior closings of $58 million in social impact equity in 2020 and $67 million in 2023. HIF says its $225 million in equity to date represents approximately $750 million in purchasing power when combined with low-interest governmental loans, philanthropic support, and below-market mortgage financing, enabling acquisitions that serve some 10,000 residents across the region.

"The completion of our third round of fundraising is testimony that Housing Impact Fund's unique model is benefiting everyone involved, including residents, investors and the broader Charlotte community," said Erskine Bowles, co-founder of the fund.

HIF’s financing model targets affordability through multiple mechanisms. Rents are income-based and average about 40 percent below prevailing market rates, with rents as low as $300 per month for households earning under 30 percent AMI. A partnership with Mecklenburg County and the City of Charlotte allows 100 percent of property taxes for HIF communities to be reinvested as rental subsidies for households at 30 percent AMI and below. To date 560 apartments have been set aside under this approach; HIF reports an average tenant rent of $336 from an average monthly household income of $1,157.

"The vision of our Fund III investors and the continued commitment of our civic and community partners will allow us to provide even more access and opportunity to people who are often left behind by the growth and prosperity Charlotte is enjoying," said Nelson Schwab, co-founder.

HIF also emphasizes resident services and local contracting. The fund invested $26 million to renovate its 11 properties, more than 90 percent of which was contracted with minority-led companies. HIF partners with foundations, non-profits and organizations such as Atrium Health, which places Community Impact Workers onsite to connect residents with workforce, health and education resources.

"Housing Impact Fund has been a powerful vehicle for social-impact investors to make headway in solving one of Charlotte's greatest challenges, safe, affordable, quality housing that allows everyone to participate in the region's economic success," said Mark Ethridge, managing principal of Ascent Housing, HIF's operating partner.

HIF named three additional fund managers to oversee Fund III: Ed Weisiger, Dr. Betsy Fleming, and Jamie McLawhorn. Managers serve pro bono to limit operating costs and maximize capital directed to preservation and resident support.

Key contributors to Fund III include Truist Bank, PNC Bank, First Horizon Bank, Bank of America, Atrium Health, First Citizens Bank, Regions Bank, Honeywell, Leon Levine Foundation, Huntington National Bank and The Duke Endowment.

Context for the initiative includes rising rents in Charlotte, where average one-bedroom rents rose roughly 35 percent over five years. Studies indicate more than 108,500 households in Mecklenburg County spend over 30 percent of income on housing, with the most severe burdens among households at 30 percent AMI and below. HIF’s blended capital and preservation-focused strategy offers a model for stabilizing existing affordable stock while aligning private investment with civic resources.