$400 Million in Tax Credits: How NeighborWorks Capital Funds 250 Nonprofits

How NeighborWorks Capital Uses Nonprofit Lending to Expand Affordable HousingJames Misner talks with Jim Peffley of NeighborWorks Capital about the affordable housing crisis, how community development financial institutions work, and the power of collaboration across the nonprofit housing sector. Jim shares his path from growing up in affordable housing to leading an institution that helps nonprofit developers access capital. They discuss the scale of the housing shortfall, how NeighborWorks Capital is structured, and why the network's collective strength gives smaller developers more leverage with investors.Key topicsJim shares how Brookview Apartments shaped his views on housing.His path went from banking to housing finance to affordable housing investing.They discuss the affordable housing continuum, from public housing to homeownership.Jim describes the scale of the housing shortage and its pressure on families.More housing alone isn't enough if it's unaffordable or blocked by zoning.NeighborWorks Capital is a nonprofit CDFI lending to housing developers.It finances land acquisition, infrastructure, and construction.The organization borrows close to $100 million a year, with $400 million in tax credits.The NeighborWorks network collectively rivals major for-profit developers.Jim explains organizing developers to negotiate better terms with investors.A failed Fannie Mae effort taught him to listen closely to customers first.Intelligent risk-taking is essential in mission-driven leadership.He closes by encouraging orgs to connect with local NeighborWorks members.Timestamps00:39 - Jim's path into affordable housing01:33 - From banking into housing finance03:41 - Today's affordable housing landscape04:55 - Scale of the housing shortfall06:30 - Housing insecurity's effect on opportunity07:58 - Why more homes isn't the whole solution09:13 - Who NeighborWorks Capital serves10:56 - Types of financing it provides11:51 - Why banks invest in it12:56 - How the nonprofit model sustains itself14:48 - Annual borrowing and lending scale15:23 - Tax credit investments and capital stack16:40 - Affordable units the network produces17:10 - Why collective bargaining power matters18:18 - NeighborWorks nonprofits as innovators19:26 - How scale advantages leave smaller groups behind22:19 - Listening as a superpower with funders23:44 - Why new partnerships require flexibility25:44 - Advice for frontline organizations27:01 - Why NeighborWorks members are the right partners28:43 - The collaborative culture of the CDFI space29:28 - What NeighborWorks Capital hopes to change next31:02 - Headwinds facing affordable housing33:40 - Where to find Jim and NeighborWorks CapitalResources & Links:The Kipos Group WebsiteSchedule a Discovery Call with JamesConnect with James Misner on LinkedinConnect with Jim:Neighborworks Capital Official WebsiteConnect with Jim on Linkedin