By Rob Bachmann, Senior Director, Impact Investing, Enterprise Community Loan Fund
If there was ever a doubt about the vital importance of a stable home in one’s life – of its profound influence on our health, wealth and basic access to opportunity – the COVID-19 crisis has been painfully clarifying. These days, amidst the pandemic, one’s home is nearly everything: our office, our recreational space, our place of refuge and of worship, and, of course, the place to lay our heads after long and challenging days – which these days have surely been.
We didn’t need a global pandemic to crystallize this truth for us. Nevertheless, it is a reality we can no longer ignore. A quality, healthy and affordable place to live has never been more important.
And yet, thousands of Washingtonians continue to be without a place to call home. This is a crisis that has broad reach and disproportionate effects.
In DC, more than 1 in 5 people experiencing homelessness are employed, reflecting the uniquely severe affordability pressures in the DC market. Meanwhile, African Americans make up less than half of the total population in the district but constitute no less than 87% of people experiencing homelessness, illuminating just some of the systemic racial injustices currently at the forefront of our collective conscience.
Now, compounding these challenges, the economic fallout from COVID-19 means things could get worse. A homelessness crisis is never just about those currently experiencing homelessness. It is also about those who are on the brink of homelessness – those who are one paycheck or health scare away from being evicted or losing their home.
Thousands of DC residents who have lost their job during the shutdown have been – or soon will be – unable to pay their rent. As recently reported in the Washington Post, federal unemployment and stimulus measures have so far kept many of these people afloat, but this is not guaranteed to last beyond July, when many of these relief measures are due to expire. This daunting reality, combined with the District’s diminished ability to step in as a result of lost tax revenue from the crisis, means we are in danger of a heightened homelessness crisis in Washington, DC.
What, then, can we do about it?
In short, this is a moment in which impact investors can rise to the occasion. Impact investing, where investors seek both a financial return on their capital and a “social” (or environmental) return on their investment, can step in where other actors, including government, is now forced to pull back. And affordable housing, it turns out, is one of the more tried-and-true impact investments out there, as it can provide both a return to the investors and a positive impact for communities and residents in need.
Enterprise Community Loan Fund, Inc. (Enterprise) is proud to partner with the Greater Washington Community Foundation in support of the Partnership to End Homelessness through our impact investing option, which you can learn more about here. Thanks in large part to this effort in partnership with The Community Foundation, last year we helped create or preserve almost 450 affordable homes in DC, most of which serve families earning under 50% of the Area Median Income, including individuals previously experiencing homelessness. The profound impact of this on residents’ lives and the greater community cannot be overstated.
We are at a critical moment in time to support Washingtonians who are most vulnerable, in particular those experiencing – or at risk of experiencing – homelessness. The good news is that we already know the best antidote to homelessness: a place to call home.
We hope you join us.