SDS Supportive Housing Fund

A Trailblazing Approach using Private Equity to Finance Housing for those Suffering from Homelessness.

Mission & Investment Focus

The SDS Supportive Housing Fund (SHF or Fund) creates a new path to finance high-quality and cost-effective housing for Californians suffering from homelessness. This new path centers on financing permanent supportive housing (PSH) using an innovative, scalable financial model. The Fund is only possible due to our investors who share our goal of supporting a cost-effective solution to reducing homelessness. The SDS SHF complements the wide range of existing public, nonprofit, and private-sector efforts all striving to achieve that goal of reducing homelessness.

PERMANENT SUPPORTIVE HOUSING

To provide each of the projected future tenants with on-site case management support to rebuild their lives.

SINGLE SOURCE PRIVATE-SECTOR CAPITAL

To rely on the Fund’s private-sector equity as the sole source of capital (beyond developer equity) for each apartment community. This single-source approach creates substantial efficiencies, saving a great deal of time and expense.

HIGH-QUALITY UNSUBSIDIZED PSH UNITS

To finance the construction of high-quality one-bedroom apartments at a per-unit cost low enough to eliminate the need to use taxpayer dollars for land acquisition or construction costs.

EMPOWERED LOCAL COMMUNITIES

To serve as a catalyst for community revitalization. The aesthetically appealing, community-centric buildings will benefit the surrounding communities and, in many cases, provide ground-level healthy food options or health services to the community.

“Reversing homelessness requires an aggressive campaign by the public-, private-, and nonprofit-sectors. The SDS Supportive Housing Fund is a new ‘tool’ in the growing ‘toolbox’ of approaches. The future tenants will have a dignified home – the type of home we each deserve – along with critical support services to rebuild their lives.”

Deborah La Franchi,
President & CEO, SDS Capital Group

SDS Supportive Housing Latest News

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SDS CEO Deborah La Franchi makes LABJ’s Leaders of Influence: Private Equity, Investors & Advisors 2024

Wall Street Journal Covers SDS SHF Model for Funding Permanent Supportive Housing

LA Times Highlights Success of SDS $190M Supportive Housing Fund Financial Model

KABC-TV Covers SHF/Dolores Huerta Apts. Grand Opening

Los Angeles Business Journal covers $150 Million Close of SDS Supportive Housing Fund

They’re Building Affordable Housing For The Homeless — Without Government Help

The Challenge

Californians experiencing homelessness¹

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Percentage of nation’s unsheltered homeless population who live in CA²

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CA’s homeless population who are unsheltered³

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Increase in homelessness in LA County since 2015⁴

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Angelenos experiencing homelessness in LA County⁵

The Solution: A Holistic Model

The SDS Supportive Housing Fund seeks to finance safe, high-quality housing for individuals experiencing homelessness.

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PSH Units

Are anticipated to be financed by the Fund’s $190 million of capital.

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Percentage of Project Cost

Beyond the developer’s equity in each investment, the Fund provides 100% of the remaining financing needed for the land, development, and construction costs

Zero

Amount of Taxpayer Subsidy

There are no taxpayer subsidies or grants used for acquisition or construction costs

SDS Supportive Housing Fund (SHF) Key Components

SDS SHF FINANCING

The Fund is the sole source of financing needed by the developer – beyond the developer’s own equity. No other capital sources – including tax credits or other subsidies – are needed to fund the construction of these apartment communities. This single-source capital approach requires only one standard pre-negotiated agreement that is used for every investment. This eliminates years of securing, negotiating, and documenting the 7-12 capital sources typically needed to finance PSH developments.

RMG HOUSING

As the hub of this PSH model, RMG serves as the developer and long-term owner of each apartment community. Some sites are purchased outright by RMG, while others have community-based churches or other land partners. RMG drew upon $2 billion of real estate development experience to develop this PSH model. Their efficient and effective process allows for construction of high-quality PSH units in significantly less time at a substantially lower cost. The SDS Supportive Housing Fund is helping RMG scale this innovative model.

SUPPORTIVE SERVICES

Each apartment community will have full-time case managers with on-site office space. Each case manager will be responsible for supporting 20 tenants and one will also live on-site rent-free.

HHCLA has struggled to place clients in quality permanent and supportive housing. The SDS Supportive Housing Fund’s investments with RMG Housing are the breakthrough we have been waiting for to help accelerate the supply of housing necessary for our clients to build better lives.

Mark CasanovaHHCLA Executive Director

The SDS Fund creates tremendous efficiencies for us. RMG and the Fund have one pre-negotiated investment agreement that we will reuse for more than a few dozen transactions. We spend zero time raising capital or negotiating terms. This will allow us to stay laser-focused on finding new sites, identifying cost savings, and overseeing construction and operations.

Tim RothRMG Housing Founder and CEO

More investments in affordable housing means more hope, health, and possibility for our unhoused neighbors. The SDS Supportive Housing Fund adds a vital financial tool to our City’s unprecedented efforts to build up our stock of supportive units swiftly and efficiently — and give our most vulnerable Angelenos a safe place to call home.

Mayor Eric GarcettiCity of Los Angeles

Footnotes :

SDS SHF
Inquiries

Contact
Jerson Asimbaya