Neighborhood Anchors Fund

HANDS NEIGHBORHOOD ANCHORS FUND: Innovative, Blended Capital, Social Investment Fund to provide long-term affordable capital to support high impact community/economic development in Orange, New Jersey

The Opportunity: Creating the 21st Century Urban Village –
A Just and Beautiful City

Over the past 27 years, HANDS and its mission focused partners and tenants have ignited a renaissance in Orange, NJ. Their work has transformed this once deteriorated, former industrial city by redeveloping industrial sites; cleaning up environmental contamination; and rescuing vacant commercial/mixed use properties. These redeveloped properties now house entrepreneurs, artisans; community builders including café, theater, music venues; a hydroponic greenhouse; furniture makers; galleries, restaurants; and young artist centers – essential partners in Orange’s continued renaissance.

As HANDS commemorates 27 years of transformative community development it is looking to build upon its work in Orange and use it as a laboratory for re-inventing formerly distressed, low-income urban areas across the country. The Neighborhood Anchors Fund has been established to meet the need for long-term affordable financing that will provide the foundation for the 21st Century Urban Village – A Just and Beautiful City - 17 anchor properties that are the centerpiece of Orange’s momentum today.

The Neighborhood Anchors Fund (NAF)

The Neighborhood Anchors Fund is an $11+ million source of long-term low-cost, blended financing that will be managed by NJ Community Capital. Structured as a ‘blended capital social investment fund, it can attract a variety of capital providers motivated by both financial and social returns.

Its four layers of capital each have a different purpose and profile: government agencies who issue long-term senior debt in the form of tax-exempt bonds; subordinated debt in the form of program related investments (PRI) from philanthropic foundations; low cost debt by individual impact investors; and a reserve fund, made up of gifts and grants from charitably motivated individuals and institutions. Together they provide an affordable, longer term, blended cost of capital of 4.6% that will be used to support high-impact community/economic development in Orange. Capital for the NAF will be raised in phases based on timing. Phase I will raise $3.3 million for seven properties, to be closed by December, 2012.

Ultimately, the Fund is part of a larger plan to accelerate the catalytic development that will fuel Orange’s renaissance by creating permanent, affordable spaces for 100+ innovators, community builders, and entrepreneurs creating jobs and improving the quality of life; leveraging an additional $250 million in Orange; and serving as a model of community and economic development for other urban communities in New Jersey and across the country.

For more information about The NAF or HANDS please contact:
Patrick Morrissy