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.
It’s 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.
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 us: