How philanthropy can uplift affordable housing

A group of 38 philanthropic funders will convene to tackle one of Canada’s largest, present-day challenges: how to fund housing development. 

Hosted by Philanthropic Funders of Canada (PFC), the Housing Funders Affinity Group will allow foundations with deep expertise in housing to share their learnings with those new to the space, said Sara Krynitzki, associate CEO at PFC. 

“There’s lots of interest because housing is an issue that touches every community in Canada,” Krynitzki said. “Whether you’re working on climate, or you’re working on poverty, or you’re working on food security, […] housing is an issue that affects everyone.” 

It’s unlikely that philanthropy in Canada can replace government funding for housing projects, said Irene Gannitsos, interim executive director at the Vancity Community Foundation. 

The foundation provides grants and low-cost financing to organizations through an affordable community housing program.

According to Gannitsos, there are diverse opportunities for philanthropy to step into the housing space, from funding early-stage planning, proposal and feasibility studies, to supporting organizations in acquiring the necessary approvals before construction. 

There is also an opportunity to provide multi-year operating subsidies to existing non-profit or non-market housing organizations.

Foundations are more likely to funnel grants into the housing sector, rather than investing endowment capital into affordable housing projects or housing bonds, said Gannitsos.

“Short-term capital is great, but if you can bring long-term, low-cost, secure capital to projects, it can help get projects that mix of capital that will help them be viable,” she said. 

Part of PFC’s policy agenda is to increase foundations’ capacity in impact investing, and according to Krynitzki, housing is a “perfect entry point to support the [philanthropic] sector in advancing their interest in impact investment.”

Gannitsos also pointed to first-loss funds as a mechanism to share and reduce risk between funders, while also attracting additional capital. 

The Meighen Family Foundation, which funds projects in Ontario and New Brunswick, says access to safe housing is one of its three focal areas of grantmaking. 

Shifts in government funding and priorities have stalled some non-profits’ housing developments, CEO Jennifer Canham said.

“Not that long ago, I was speaking with [a non-profit organization] to talk about their funding needs, and just talking about how they were waiting, with so many elections, to hear if some funding was coming in,” she said. 

“It was more capital-type funding, so they couldn’t even tell us if they needed the support-type funding.” 

Recently, the B.C. provincial government paused the Community Housing Fund, which was due to unlock more than $770 million into the non-market housing sector. 

With several projects nearly ready for construction but suddenly lacking the necessary capital, Gannitsos hopes there is an opportunity for philanthropy to pool its resources and support these organizations. 

Canham has also seen philanthropic foundations providing larger pots of capital funding to kick-start housing development, especially at the local or regional level. 

“Sometimes, those are the ones that are successful, because they’re a little nimble,” she said. “They can make progress faster.”

The Meighen Family Foundation, along with the Tree of Life Foundation, will be supporting one of the first initiatives of the Affinity Group, a nationwide research project about existing, ongoing housing-related funders and projects, “including systems change efforts, research, homelessness responses, impact investing and relevant federal, provincial and municipal housing funding programs.”

The project will also look to “identify non-profits, charities, and other organizations with demonstrated impact.”

Canham emphasized that the research intends to capture housing projects and funders at all levels, from recipients of federal funding from Build Canada Homes, to tiny homes villages springing up to address homelessness in selected communities.