On a muggy May morning in downtown Ottawa, a dedicated group of citizens gathered to mark a pivotal turning point for the Ottawa Community Land Trust (OCLT).
May 21, 2024, marked the official launch of the OCLT Housing Forever Bonds campaign – a social finance-powered* springboard that will help establish OCLT as a local leader in the preservation of housing affordability.
Ottawa cares deeply about affordable housing
The support from the greater community thus far has been heartening to say the very least. The Housing Forever Bonds campaign was kicked off with a generous $350K in commitments from mission-aligned organizations including Lowertown Community Resource Centre and the Sandy Hill Housing Co-operative, as well as community stalwart United Way East Ontario.
When asked why they decided to commit to the cause, Matthew Beutel, Executive Director of the Lowertown Community Land Trust didn’t hesitate.
“We’re proud to be the first non-profit organization to invest in the Ottawa Community Land Trust. The OCLT provides us with two things: 1) a safe and stable mechanism for part of our reserves to earn income for our organization and 2) a way to do so which aligns with our values and mission. Contributing to the preservation of affordable housing in Ottawa improves the quality of life of residents of our community. We are hopeful and confident that many other organizations will follow suit!”
Matthew Beutel, Executive Director of the Lowertown Community Land Trust
Housing Forever Bonds offer a unique opportunity to have a meaningful and measurable impact in your own backyard. An investment in affordable housing is an investment in our community as a whole. It impacts us all.
For local residents, Kaireen Patton and Bryan Reid, an investment in Housing Forever Bonds is an investment made with their children’s future in mind:
“Although we didn’t know it at the time, we were incredibly lucky to enter the Ottawa housing market over 20 years ago. As parents, we think it’s important that the next generation has access to affordable housing, whether as renters or owners. The work the OCLT is doing goes a long way to helping provide and preserve that access for many people wishing to live in Ottawa. We see OCLT’s community bonds as a solid investment in Ottawa’s future.”
How exactly do community bonds work?
Not unlike a traditional bond, a community bond is an interest-bearing loan from an investor with a rate of return and a fixed term. Commonly used by charities, non-profits and cooperatives, these types of bonds are used to finance initiatives with social and environmental impact.
With a campaign goal of $1,720,000, funds raised from Housing Forever Bonds will go towards (a) repayment of our line-of-credit and patient capital on our recent acquisition of 887 Kirkwood Avenue, and (b) capitalizing our revolving fund, enabling us to pursue a 2nd and 3rd appropriate property in 2024.
Tapestry Community Capital is OCLT’s community bond partner. They have extensive experience in community investment and social finance and have successfully helped raise and manage $100 million+ in community bonds for numerous community-minded endeavours across Canada.
The impact of Housing Forever Bonds will be significant and far-reaching
In addition to providing solid financial returns for investors, Housing Forever Bonds will have a considerable social impact in both the short- and long-term. Income generated over time will contribute to:
- the prevention of tenant displacement;
- the collective efforts to remove land from the speculative land market and hold it in perpetuity for community benefit;
- the addition of at least three properties to the OCLT portfolio of affordable rental housing;
- retaining a mix of housing options for diverse populations across Ottawa’s many neighbourhoods;
- building and retaining wealth “within Ottawa, for Ottawa”;
- the realization of Sustainable Development Goal 11: “By 2030, ensure access for all to adequate, safe and affordable housing”; and,
- the strengthening of an acquisition vehicle (and fund) in Ottawa, in anticipation of future public funding and impact investment.
Put simply, funds raised from the Housing Forever Bonds campaign will be a game-changer. Together, with the generosity and foresight of our local citizenry, we will create a strong foundation for achieving OCLT’s number one priority – keeping housing affordable – forever.
Ready to invest in Housing Forever Bonds and help keep housing affordable forever?
If you believe in the importance of affordable housing for all, investing in OCLT Housing Forever Bonds is a great way to make a difference while also making a profit! To learn more, visit oclt.ca/invest
*Social finance is a category of financial services that aims to leverage private capital to address challenges in areas of social and environmental need.[1] Unlike philanthropy, which has a similar mission-motive, social finance secures its own sustainability by being profitable for investors.[7] Capital providers lend to social enterprises, who in turn, by investing borrowed funds in socially beneficial initiatives, deliver investors measurable social returns in addition to traditional financial returns on their investment.[8]
Wikipedia