Civic Community Partners and Norwood Development Strategies have partnered to form a middle-income housing development fund. The fund has targeted a capital raise of $100 million from social impact investors, and will provide equity investment for the development of rental housing for residents making 80% to 150% of the median area income.

"Across the state, there is a significant need for affordable housing, and that is the most pressing issue in our community," Michael Lengyel of Civic Community Partners, tells GlobeSt.com. "There are dedicated resources for low-income housing, like federal tax credits and local funds. However, in San Diego, rents have gone up and those in the middle with average incomes are struggling to obtain housing. There aren't any subsidies to help bring the cost down for those renters."

In looking for solutions to San Diego's demand for attainably priced homes, Civic noted several social impact-focused funds in other markets across the country. Social impact investors accept a lower return in exchange of a strong social component to the investment. "We set up a fund to attract those investors. They are willing to take a slightly lower return but to sponsor housing for those in the middle that will help address our housing needs. This was a way for us to help those in the middle by using private capital," says Lengyel.