BRIDGE Housing Launches Private Equity Fund Aimed at Investing $1 Billion to Acquire and Create Affordable and Workforce Housing on the West Coast

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SAN FRANCISCO--(BUSINESS WIRE)--Sep 15, 2025--

BRIDGE Housing, the leading nonprofit affordable housing owner and developer on the West Coast, has launched its first private equity fund to accelerate its mission-driven work to address the affordability crisis for low- and moderate-income families in some of the nation’s costliest housing markets.

BRIDGE Housing Impact Fund I is on course to raise $350 million of equity, enabling about $1 billion in investment potential to acquire, preserve, and create affordable and workforce housing in major metropolitan areas in California, Oregon, and Washington.

KeyBank and BMO are each investing $25 million to anchor one of the largest equity funds to be sponsored and managed by a nonprofit affordable housing provider. PGIM Real Estate is also a launch investor, and BRIDGE expects to announce additional stakeholders in the coming months.

The Impact Fund attests to BRIDGE Housing’s legacy of capital markets innovation that has helped drive four decades of success in developing high-quality affordable housing at scale. BRIDGE was the first nonprofit housing firm to earn a credit rating and issue both taxable and tax-exempt bonds. It has also forged creative partnerships with major financial institutions, like Morgan Stanley and California’s state employee pension fund CalPERS, as well as leading affordable housing finance organizations like National Equity Fund (NEF).

The Impact Fund will help the affordable housing provider maintain strong momentum after achieving 11.5% portfolio growth in 2024. BRIDGE Housing currently has more than 14,500 units and over $4 billion in total assets, and acquisitions are an increasingly important strategy for expansion, accounting for half of the nonprofit’s planned addition of 5,100 affordable units between 2024 and 2027.

Over the past year, BRIDGE Housing has completed four acquisitions to preserve more than 600 units whose affordability covenants were poised to expire and create 257 additional affordable homes by converting market-rate units. The Impact Fund leverages BRIDGE’s capital to accelerate acquisitions, as well as its leadership team’s decades of real estate and finance experience to deliver strong returns for institutional investors.

“We are innovating every day to extend our reach and capacity to build, acquire, and redevelop affordable housing communities on the West Coast,” said Ken Lombard, BRIDGE Housing President and CEO. “Our Impact Fund will enable us to move quickly on acquisitions not only to protect long-term affordability but also to add new affordable and workforce housing by converting market-rate units into homes for low- and middle-income earners, driving greater and faster impact along with steady returns for investors.”

Lombard added: “We are deeply grateful to KeyBank, BMO, and PGIM for taking the next step in our growth by investing in the BRIDGE Housing Impact Fund.”

Founded in 1983, BRIDGE Housing is a leader in creating safe, healthy, and affordable housing communities along the West Coast. Currently, nearly 32,000 residents live in BRIDGE properties, where the nonprofit provides high-quality homes and positive social impact by connecting residents to comprehensive services that enhance economic opportunity, education, wellness, and overall quality of life.

The Impact Fund will pursue three main investment strategies to create a diversified portfolio and optimal returns for investors: acquire and preserve housing whose income restrictions are due to expire; acquire market-rate properties and layer in income restrictions to create affordable housing (serving those earning up to 80% of Area Median Income) and workforce housing (serving those earning 80%-120% AMI); and acquire naturally occurring affordable and workforce housing. Incorporating new income-restricted units will allow BRIDGE Housing to benefit from tax abatements and below-market financing. In select cases, the Impact Fund may consider new construction projects.

While institutional capital has long played a critical role in affordable housing, it typically has been used to provide debt financing or purchase tax credits in public-private partnerships, a lengthy, complex process that requires assembling multiple funders and competing for limited public resources.

By using private equity and avoiding subsidies, the Impact Fund will enable faster, less expensive financing and the potential for higher returns for the growing ranks of financial institutions, pension funds, family offices, and foundations pursuing investment opportunities in affordable housing. Its launch comes at a critical moment: Over 50,000 affordable housing units on the West Coast are set to lose their income restrictions and become eligible for market-rate rents in the next five years.

“The Fund demonstrates our commitment to step up to meet the demand for quality affordable housing, and extend our positive impact with a strategy that benefits residents, communities, and our fellow investors,” said Elizabeth Van Benschoten, Chief Investment Officer at BRIDGE Housing. “As a capital markets pioneer, BRIDGE is uniquely positioned to launch this important initiative, and we look forward to working with new and longstanding partners.”

BRIDGE Housing has a strong history of collaborating with financing partners in the public and private sectors on leading-edge solutions that have opened up capital markets for affordable housing nonprofits. In 2020, Morgan Stanley underwrote BRIDGE’s $100 million general-obligation bond issue, which created a new asset class for affordable housing providers. In 2022, Morgan Stanley partnered with NEF to provide BRIDGE with a $250 million credit facility that has supported recent acquisitions. Last year, KeyBank underwrote BRIDGE’s precedent-setting issue of tax-exempt construction bonds, raising $71.5 million to help fund one of Portland’s largest new affordable housing communities.

“KeyBank has an unwavering, deep commitment to affordable housing,” said Robert Likes, President of KeyBank Community Development Lending and Investment. “We are proud to collaborate with BRIDGE Housing and invest in the expansion of its community impact through the BRIDGE Housing Impact Fund to provide more capital for affordable housing communities throughout the country.”

“At BMO, we are committed to Boldly Growing the Good in business and life by supporting innovative solutions that address pressing community needs,” said Carl Jenkins, Managing Director & Group Head, Community Capital Solutions, BMO Commercial Bank. “Our investment in the BRIDGE Housing Impact Fund reflects our dedication to driving real financial progress while helping to create sustainable, affordable housing opportunities across the West Coast.”

“Investing in BRIDGE Housing’s Impact Fund is a testament to our commitment to fostering sustainable communities through strategic partnerships,” said Stephanie Wiggins, Managing Director and Head of Production, Agency Lending at PGIM Real Estate. “We are proud to align with BRIDGE Housing’s innovative approach to addressing the affordability crisis, not only preserving vital housing but also creating new opportunities for low – and moderate-income families.”

The Impact Fund will be a powerful catalyst for growth. BRIDGE Housing anticipates acquiring about 20 properties, with an estimated total of 3,500 units, during the three-year investment period. It supplements BRIDGE’s robust ground-up construction and redevelopment activity from Seattle to San Diego. The affordable housing nonprofit has more than 10,000 units in its development and acquisition pipelines.

“BRIDGE Housing brings the full-spectrum expertise of a long established vertically integrated developer, owner, and operator of affordable housing,” said Chief Real Estate Officer Sierra Atilano. “Our acquisition and development track record has made us a partner of choice in major West Coast cities, and we’ll continue that trusted stewardship in managing the Fund.”

The Impact Fund reflects BRIDGE Housing President and CEO Lombard’s drive to adopt market-driven strategies to fulfill the nonprofit’s mission. A nationally respected business leader who once led Earvin “Magic” Johnson’s real estate development company, Lombard has dedicated his career to improving the quality of life in underserved urban areas through social impact investing.

Since joining BRIDGE Housing in 2021, he has recruited executives with private-sector experience and strengthened BRIDGE Housing’s performance, earning an upgrade in 2023 of the company’s S&P Global Ratings credit rating to AA-, among the highest assigned to any nonprofit housing developer.

“The Impact Fund is the latest milestone since BRIDGE Housing was founded four decades ago with the bold vision to provide quality affordable housing on a large scale,” said Ken Novack, Chair of BRIDGE Housing’s Board of Directors. “It’s an opportunity for investors to join forces to make a positive impact in challenging West Coast metro areas where we have operated and long been successful.”

About BRIDGE Housing

BRIDGE Housing Corporation is a leading nonprofit owner, developer, and manager of high-quality affordable housing on the West Coast, with a mission to strengthen communities and improve lives. Founded in 1983, BRIDGE Housing has participated in the creation of more than 23,000 affordable homes in California, Oregon and Washington, with a total development cost of $6 billion. Its current $4 billion portfolio totals nearly 15,000 apartments that are home to more than 30,000 residents, with more than 10,000 additional units in the development and acquisition pipelines. For more information, visit https://bridgehousing.com/.

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