Community Foundation for a greater Richmond Makes First $1M Impact Investment in VCC’s Affordable Housing Loan Fund

August 26, 2022 | In the News

Virginia Community Capital (VCC) was recently chosen to receive a one‐million‐dollar impact investment toward its new Affordable Housing Loan Fund by the Community Foundation for a greater Richmond. The revolving loan fund will provide access to low‐cost capital for mission‐driven developers working to meet the growing need for affordable housing in the Richmond area.

According to a recent report, Virginia has a shortfall of more than 200,000 affordable homes; nearly 20% of which are in the Richmond area. The Foundation identified this issue as a high impact priority and focus for a pilot impact investment in a like‐minded organization capable of deploying resources effectively. VCC is a certified community development financial institution experienced in leveraging private and public resources for social purpose projects and has financed over 11,000 affordable housing units across the Commonwealth of Virginia since 2006.

Amir Kirkwood, President and CEO of VCC’s parent organization VCC Social Enterprises, said, “This partnership is a significant step in the movement to address housing affordability in Richmond communities. We’re always excited to join forces with mission‐driven organizations like the Foundation to make real impact possible in neighborhoods where potential is so great.” Sherrie Armstrong, President and CEO of the Community Foundation, said, “The motivation behind our involvement is to, first, look at all the ways the Foundation can use its assets for good, and second, to improve the supply of quality affordable housing and reduce the housing cost burden many families are experiencing.” The Affordable Housing Loan Fund plans to raise $35 million dollars to help nonprofit developers finance predevelopment, acquisition, and construction costs. Initial funders of the Affordable Housing Loan Fund include the Community Foundation for a greater Richmond, Richmond Association of REALTORS® and United Bank.

The Foundation and VCC have a longstanding partnership that has generated meaningful impact in the Richmond region. In addition to its investment in the Affordable Housing Loan Fund, the Foundation recently contributed one million dollars to VCC’s Economic Equity Fund, a $10 million dollar loan fund providing low‐cost financing for small business owners who are women and/or Black, Indigenous, or People of Color (BIPOC).