SDS Capital Group Unveils SDS Impact Debt for Affordable Housing Financing

Introduction

The SDS Capital Group, based in Los Angeles, has recently introduced an innovative financing solution called SDS Impact Debt (SDSID). The platform is designed to cater specifically to affordable housing developers throughout the United States, offering them the necessary capital to create and preserve much-needed housing units.

Addressing the Affordable Housing Crisis

As affordable housing continues to be a significant issue across America, SDS Capital Group aims to tackle this challenge head-on. With the launch of SDS Impact Debt, the group intends to provide over $1 billion in funding for affordable housing development over the next 18 months. This move underscores SDS Capital's commitment to supporting low-income communities by ensuring access to quality housing.

Financing Details and Structure

SDSID offers a range of below-market permanent and construction financing options, targeting a diverse set of projects. Currently, the focus is on securing financings for 1,427 multifamily units, over half of which will be available to families earning 80% or less of the area median income (AMI). This is a pivotal effort to help bridge the affordability gap in numerous localities throughout the country.

Leadership and Expertise

Under the leadership of Jason Riffe, managing director of SDSID, this initiative aligns with the group's broader mission of impact investing. With $1.7 billion in assets under management across five impact-focused funds, SDS is already a pioneer in the realm of social impact. The company has invested in more than 8,000 housing units, with a significant portion designated as affordable housing or supportive housing for those experiencing homelessness.

"Jason brings exceptional talent and a deep passion for impact to our team," expressed Deborah La Franchi, the founder and CEO of SDS Capital Group. "This expansion not only bolsters our mission but also amplifies our impact in communities that need it the most."

An Innovative Approach to Financing

SDSID distinguishes itself by offering a comprehensive program where affordable housing developers can obtain both debt and equity financing under one roof. This innovative approach simplifies the funding process, eschewing the lengthy application procedures for public grants that can delay project starts for years. By providing a seamless, one-stop financing solution, SDS significantly reduces both the time and costs associated with bringing new affordable housing projects to fruition.

Conclusion

The launch of SDS Impact Debt marks a significant milestone in SDS Capital Group's journey. By focusing on affordable housing financing, the organization not only addresses pressing social issues but also positions itself as a leader in the impact investing landscape. With this new platform, SDS aims to empower developers and contribute actively to the availability of affordable housing across the United States.

For more information about SDS Capital Group and its initiatives, visit their website or follow them on LinkedIn.