The group's first investment, announced yesterday, was in 12 multifamily rental housing properties (1,456 units) from the California Community Reinvestment Corporation (CCRC), a nonprofit lending consortium funded by 45 member banks and thrifts throughout California.
IMPACT is comprised of Allstate Insurance Company, Farmers Insurance Companies, Pacific Life Insurance Company, PMI Mortgage Insurance Company, SAFECO Insurance, State Farm Insurance Companies, Teachers Insurance and Annuity Association, 21st Century Insurance Compan and Nationwide Mutual Insurance Company, its latest member.
By purchasing the mortgages, IMPACT's members provided $40.5 million that will be recycled into additional mortgage loans to provide housing for low-income and moderate-income families. Properties in the IMPACT loan pool provides housing for families with incomes that do not exceed 60 percent of area median income.
The properties included in the purchase are the Meridian Apartments, Santa Maria; Seville Gardens, Huntington Park; Sunny Gardens Apartments, La Puente; Heritage Apartments, Roseville; Lorin Station, Berkeley; Dinuba Manor, Dinuba; 6th & Minna, San Francisco; Casa Serena Senior Apartments, Lompoc; Ross Gardens, Fresno; Temple/Edgeware Apartments, Los Angeles; Evergreen Village, Los Angeles; and Auburn Heights Apartments, Bakersfield.
IMPACT was able to obtain unprecedented "A" and "BBB" ratings from Standard & Poor's for 65 percent of the CCRC mortgage pool, allowing the consortium was able to issue safer, investment grade securities.
"We, and our IMPACT partner companies, have always been major investors in housing and other bonds to help build California communities," said Thomas C. Sutton, chairman of the board and chief executive officer of Pacific Life Insurance Company, a member of the consortium. "Through IMPACT, we will play a more direct and active role."
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