Kaiser Permanente doubles investment in affordable housing and provides economic opportunity

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The historic social impact investment fund will be increased to $400 million to expand the organization’s efforts to improve community conditions

OAKLAND, CA., April 14, 2022 /PRNewswire/ — Kaiser Permanente, the nation’s largest integrated nonprofit health system, is increasing its financial commitment to economic development and investing in affordable housing across United States by doubling the capital of its social impact investment fund Thriving Communities to $400 million. This step is part of Kaiser Permanente’s efforts to address the impact of COVID-19 on underrepresented communities, including low-income and communities of color, including health and wellness economy have been hardest hit by the pandemic.

The Vibrant Communities Fund, which represented a pioneering approach for a healthcare organization when it launched in 2018 with $200 millionis on track to create and preserve 15,000 affordable housing units by 2025. Double the fund to $400 million will double the impact to create or preserve 30,000 units by 2030, while advancing inclusive economic development in communities to address the systemic economic disadvantage and discrimination that underpins the housing crisis.

Impact investing is a form of values-based investing that is used to deliver positive, measurable social and environmental benefits in areas such as affordable housing, community social services, and inclusive small business financing to contribute to the economic health and well-being of communities. . Kaiser Permanente sees impact investing as a meaningful way to support healthy, financially strong communities – where everyone can keep a roof over their heads, put food on the table, get the medical care they need need when they need it and live the life they have. want to live. This additional commitment to the Impact Investing Strategy deepens investment in the communities Kaiser Permanente serves, supporting the thriving economies and high-quality affordable housing that are the foundations of overall health and well-being.

“I was already in therapy for my mental health issues for 5 years. Being housed gave me the ability to focus on my mental health and really make therapy work for me. I didn’t have the stability in my life to be able to do these things before,” said Give Lewisa 44-year-old veteran who was previously homeless in Baltimore which was housed through an investment from the Thriving Communities Fund. “I have a different outlook and attitude, and I’ve grown. My friends and family have never seen me like this before.”

Health systems are uniquely suited to be impact investors, deploying their resources to reach upstream and shift the economic levers that drive community health. Directing investments into high-impact assets like affordable housing and local businesses has the potential to generate strong, long-term community health returns.

“By bringing together the capabilities of the health and investment sectors, Kaiser Permanente can strengthen neighborhoods, improve health and help communities thrive,” said Bechara Choucair, Senior Vice President and Chief Health Officer of Kaiser Permanente. “Kaiser Permanente supports equitable economic opportunity through its approaches to hiring, buying, building, investing, and partnering with communities. Ultimately, this work will help our communities overcome systemic economic disadvantage and structural.”

The fund’s preliminary financial performance results are in line with expectations and demonstrated how impact investing can be aligned with Kaiser Permanente’s broader responsible investment approach. The fund also creates social change for the people and communities it reaches, in the form of an increased supply of affordable housing and increased financial resources for neighborhoods and entrepreneurs of color.

Thriving Communities Fund results to date include:

  • Preservation or production of more than 7,000 affordable housing units located across the United States in Los Angeles; Oakland; Sacramento; San Diego; Sonoma County, California ; Portland, OR; Atlanta; washington d.c.; Baltimore; Prince George County, MD; denver; and Seattle.
  • A $50 million investment in SDS Capital Group’s rapid housing development fund, catalyzing $100 million in investments from other donors, allowing the construction of 1,800 housing units with support services California at half the typical development cost and three times faster than the average build time.
  • Provide essential pre-development loan capital to transform a previously underutilized 8-acre area into washington d.c.with mixed housing, public health resources, and retail, office, and arts space.

Increasing access to affordable housing and supporting long-term economic stability in communities provides residents with hope and security while improving health conditions and equity on a broader scale.

About Kaiser Permanente

Kaiser Permanente is committed to helping shape the future of healthcare. We are recognized as one of America’s leading health care providers and nonprofit health plans. Founded in 1945, Kaiser Permanente’s mission is to provide affordable, high-quality health care services and improve the health of our members and the communities we serve. We currently serve 12.5 million members in 8 states and the District of Colombia. Care for members and patients is focused on their overall health and guided by their physicians, specialists and team of personal caregivers from Groupe Médical Permanente. Our expert and caring medical teams are empowered and supported by technological advancements and state-of-the-art tools for health promotion, disease prevention, advanced care delivery and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education and community health support. For more information, visit about.kp.org

Steve Shivinsky
[email protected]
925-393-3911

SOURCE Kaiser Permanente

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