1. Regional Partnership for the Bay Area
August 1, 2018

2. Our agenda today Design of the Regional Partnership Investment Fund
Policy Fund
Governance and fundraising
Staffing

3. The Regional Partnership pursues a Bay Area vision
Leadership from across the region, and across sectors, coming together around a shared commitment to create and maintain vibrant, inclusive communities of racial and economic diversity by addressing the interconnected and urgent needs in housing, transportation, and economic opportunity.

4. Two goals drive the Regional Partnership’s focus on housing:
Create and maintain vibrant, inclusive communities of racial and economic diversity across the Bay Area by:
Enabling more housing across the income spectrum, preserving existing affordable housing, and protecting tenants from displacement
Building lasting political will for local housing production, preservation, and protection policies that address the affordability crisis across the Bay Area
Over time, the Regional Partnership will focus on housing, transportation, and economic opportunity as the critical elements for long-term prosperity.

5. The Regional Partnership will initially have three components
1. The Partnership
Build political and public will through investments and engagement in communications and advocacy
2. The Investment Fund
Demonstrate the viability of innovative approaches for production and preservation
Pursue a wide range of potential investments, from mixed income housing development to acquisition financing for underdeveloped sites
3. The Policy Fund
Enable jurisdictions to effectively stem the tide of displacement and preserve and produce housing
Provide resources and capacity to enable local policy change and implementation

6. Our agenda today Design of the Regional Partnership Investment Fund
Policy Fund
Governance and fundraising
Staffing

7. The Investment Fund will be guided by four principles
The following four primary principles guide the program design of products for the Investment Fund:
Products should be additive to the Bay Area development landscape - Products will work in coordination with existing intermediaries, enhancing their capacity and adding where there are limitations.
Products should not duplicate existing efforts - To the extent that another organization offers a similar product, the Investment Fund will work to support that organization instead of duplicating efforts.
Products should be innovative - Products will be designed creatively, working to overcome gaps and barriers in the current system in a way that hasn’t been possible before.
Products will provide low-cost, risk-tolerant capital - By being low- cost and able to take risks, the Investment Fund will provide organizations with capital that is flexible and able to move projects forward.

8. The Investment Fund will support housing development
Summary
Overview:
Provide a range of capital types that enable investment anywhere in a project’s capital stack, thereby accelerating housing activity, pushing more innovative projects towards completion, and filling funding gaps to incent development. The Fund will not duplicate existing efforts and will be managed by LISC in cooperation with the Community Investment Program and the Corporation for Supportive Housing.
Timeframe:
5 years of origination with initial investments; year fund term (TBC)
Target Jurisdictions:
Jurisdictions in five Bay Area counties: San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa
Preliminary Initial Products
(in design):
1) Acquisition and predevelopment loans for supportive housing projects; 2) Acquisition and construction loans for small sites and preservation of affordable housing; 3) Predevelopment, construction and permanent loans for production of affordable housing on non-profit and faith-based land; 4) Equity investments for developers of affordable, workforce and mixed-income housing
Amount:
Initial seed funding from CZI, multiple foundations, CDFIs, and private sector companies. Target size $400M-$500M of total capital

9. Our agenda today Design of the Regional Partnership Investment Fund
Policy Fund
Governance and fundraising
Staffing

10. The Policy Fund will be guided by five principles:
The following five primary principles guide the design of the Policy Fund:
Support change at scale. The fund should support policy changes that will significantly advance production, preservation, and protection, and create diverse communities of racial and economic equity across the region. Collaboration and coordination will be important elements.
Begin with a focus on protection and preservation. The immediacy of the housing crisis calls for prioritizing protection and preservation. The Policy Fund is best suited to respond.
Seek opportunities for leverage and synergy with the investment fund and policy implementers. Interaction and collaboration across the two funds and with policy implementers (e.g., government officials) can magnify overall impact.
Tailor solutions to the needs of different jurisdictions while seeking regional impact. Jurisdictions are struggling to deal with the housing crisis with varying levels of capacity, willingness, and resources. Solutions should be tailored to the challenges of specific jurisdictions and have significant impacts.
Empower community-tested solutions. The Policy Fund and its resources should engage and empower community voices often left out of the conversation, in partnership with policymakers.

11. The Policy Fund will support policy change
Summary
Overview:
Support jurisdictions to stem the tide of displacement and preserve and produce housing by providing resources and capacity to jurisdictions and community organizations to pass and implement effective policies. The Fund will support significantly impactful and flagship model policies. It will be managed by TSFF.
Timeframe:
5 years
Target Jurisdictions:
Jurisdictions in five Bay Area counties: San Francisco, San Mateo, Santa Clara, Alameda, Contra Costa
Preliminary Products
(in design):
1) Challenge Grants for Protection and Preservation to provide Fellows, capacity, and resources to help pass protection and preservation policies; 2) Breakthrough Grants for Production and Preservation to provide capacity and resources to help pass production and preservation policies; 3) Strategic Reserve Technical Assistance Grants to provide flexible TA capacity
Amount:
Initial seed funding from CZI, multiple foundations, and private sector companies. Target size $25M-$40M of total capital

12. The Policy and Investment Funds are complementary
Coordinated
Direct
Indirect
Founding members design the funds together
Aligned communications and advocacy support delivered by Partnership members
One shared advisory board along with community engagement will provide aligned community and expert guidance
Policy Fund winners have privileged access to the Investment Fund
Breakthrough Grants unlock more opportunities for the Investment Fund
The advisory board and staff pursue connections between the two funds
The Policy Fund will highlight the 3Ps as critical to solving the housing crisis
The Investment Fund will provide substantial awards to innovative jurisdictions, encouraging policy change