Local community land trust celebrates first milestone, raises over $672K in community investment to expand non-profit, affordable housing in Ottawa
03 Julio 2024 - 7:45AM
Traditional unceded territory of the Algonquin Anishinaabeg
Nation, Ottawa, Ontario: The Ottawa
Community Land Trust (OCLT), a non-profit social enterprise that
launched its
Housing Forever Bonds in May this
year, with a target to raise $1.72M in investments, is proud to
celebrate a significant milestone in its campaign. In little over a
month, the non-profit has secured $672,500 – about 40% of its
campaign target – in community investment to preserve affordable
housing in Canada's capital.
With over 35 social impact investors from across Canada, the
OCLT has received remarkable community support in the form of
community bond investments. Community bonds are a proven social
finance tool that allow individuals and organizations to invest in
impactful projects, while earning a financial return.
OCLT’s Housing Forever Bonds are designed to appeal to a wide
range of investors, from local Ottawa residents to businesses,
organizations and foundations across Canada, with investment
minimums as low as $1,000 and interest rates up to 4.5%.
Mike Bulthuis, Executive Director at
Ottawa Community Land Trust, emphasizes the significance
of this milestone: "The investment we’ve received is a testament to
the power of community-driven solutions in addressing the housing
crisis. It not only supports our current projects but lays a solid
foundation for growth."
This milestone represents a critical step
forward in the OCLT’s work to address Ottawa's pressing housing
challenges. By securing these funds, the land trust will refinance
its inaugural acquisition at 887 Kirkwood Avenue, ensuring
long-term affordability and sustainability of this community asset.
Additionally, a portion of the capital will be utilized towards the
purchase of its second building through its revolving fund.
The OCLT’s revolving fund was established with
the goal of acquiring two additional multi-unit residential
properties by the end of 2024 - preserving them under community
ownership. This expansion is poised to substantially increase
non-profit ownership of housing in Ottawa, ensuring much-needed
affordable options remain - in perpetuity - amidst a backdrop of
diminishing affordable housing units.
With Ottawa losing 31 affordable rental housing
units for every affordable rental housing unit built, the City
Council has directed the City of Ottawa to assess the merits of an
affordable housing acquisition / preservation fund. As part of
this, the OCLT has been identified as a local sector partner for
the City to connect, observe and learn from local experience in
acquisitions. The OCLT’s revolving fund is a key demonstration of
how organizations and the government can blend capital and leverage
new sources of funding such as community finance to preserve
affordable housing.
“We look forward to continued meaningful
dialogue with the City to inform a community strategy to support
the acquisition and preservation of affordable housing in Ottawa.
From our work, we see that the community is a willing partner, one
that is keen to bring its own capital forward to address these
housing challenges”, Bulthuis added.
OCLT’s bond campaign is executed under the
administration of Tapestry Community Capital, a
community investment and social finance leader that has
successfully worked with organizations to raise over $110 million
in community bonds.
As OCLT nears its target of $1.72M, the land trust is inviting
values-aligned investors, everyday-residents and businesses to get
involved today. Investors can learn more about the Housing Forever
Bonds and explore investment opportunities by visiting
https://www.oclt.ca/invest/
About The Ottawa Community Land
Trust:
Incorporated in 2021, the Ottawa
Community Land Trust is a non-profit social enterprise,
with a vision to make and keep affordable housing available to
anyone who needs it in the capital of Canada. OCLT pursues
innovative ways of preserving housing affordability - forever. Core
to our mandate is the acquisition of existing rental properties -
to be turned into community-owned affordable housing - by blending
community impact investment, philanthropy and public dollars.
Media contact:Yulu
PRtapestry@yulupr.com 778-955-0448