Increasing Investment in Affordable Housing, Climate Resilience, and Small Business in Underserved Communities
Brief Jan-01-2022 | 2-min read
About This Guarantee
In an attempt to increase investment to address the social determinants of health in low-income communities and communities of color, and give a new tool for the community development finance system, the Robert Wood Johnson Foundation (RWJF) provided a guarantee of up to $10 million to the Community Investment Guarantee Pool (CIGP).
Created by the Kresge Foundation, CIGP, a first-of-its-kind vehicle within community finance, pools more than $42 million in investments from 14 investors including 12 philanthropies, one health system (Common Spirit), and LOCUS’ parent company—VCC. Through the aggregation of unfunded guarantee commitments from philanthropic organizations, CIGP utilizes the strengths of their balance sheets to unlock capital for affordable housing, small business, and climate. More guarantor commitments are
expected in the next year, with the intention of increasing the pool to over $50 million.
Why It Is Needed
At RWJF, we envision a future where everyone—no matter who they are, where they live, or how much money they make—has safe housing that is affordable; equitable access to parks, recreation, and clean water and air; and good jobs with fair pay.
Yet more than one in five U.S. residents live in a low-income community, which are more likely to have barriers to good health and opportunity.
Through these guarantees, we hope to support initiatives that improve economic and environmental factors that shape our health and empower communities. Specifically, this guarantee aims to:
Progress to Date
In its first full year of operation in 2020, CIGP made some significant loan guarantees:
RWJF uses grantmaking, policy change, and impact investing to address barriers to health and wellbeing.
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