Habitat Capital launches pilot fund to address financing challenges for nonprofit real estate developers
The new fund aims to unlock flexible capital for Habitat affiliates to build affordable housing at scale.
ATLANTA (June 17, 2025) — Habitat Capital, Habitat for Humanity International’s community development financial institution, announced today the launch of an innovative pilot fund designed to address a critical challenge for nonprofit real estate developers: the lack of equity required to secure financing or provide guarantees. While traditional for-profit real estate developers often provide personal guarantees backed by substantial equity, Habitat affiliates and most nonprofit organizations typically lack access to comparable equity resources.
To bridge this gap, Habitat Capital is launching a financial product that functions as a flexible, equity-like solution. This low-cost, subordinate and unsecured financing provides affiliates with a revolving line of credit they can leverage for non-project-based construction financing or other bridge financing needed to address funding shortfalls. The pilot will launch in California and New Jersey to test the product’s scalability and impact, with the long-term goal of creating a national fund to provide equitable financing options for affiliates.
The pilot fund is made possible through the generous commitment of $10 million from the Robert Wood Johnson Foundation and $3 million from the Chan Zuckerberg Initiative, which will deliver critical support to Habitat affiliates. Habitat Capital has dedicated an additional $2 million to addressing excess demand, for a total fund of $15 million.
“The Robert Wood Johnson Foundation and The Chan Zuckerberg Initiative have been invaluable partners in helping Habitat Capital launch this innovative fund,” said Daniel Gura, Habitat for Humanity International’s vice president and executive director, Habitat Capital. “Their catalytic grant funding and loan commitments underscore their contributions to advancing equitable access to capital, and we deeply value their partnership in driving this transformative initiative forward.”
“Stable, affordable homeownership is a key driver of health equity as it gives people a foundation to thrive physically, mentally and economically,” said Zoila Jennings, lead impact investment officer at RWJF. “We’re proud to support Habitat Capital in removing barriers to equitable financing, not only because it will build more homes for healthier futures, but because community members in California and New Jersey — those who understand the needs — will be able to make expedient decisions.”
“Affordable homeownership remains out of reach for too many Californians — and closing that gap takes bold financial innovation,” said Amaya Bravo-France, program officer at the Chan Zuckerberg Initiative. “Habitat Capital is filling a critical gap with flexible, low-cost capital that empowers affiliates to move faster and scale their impact. We’re proud to support this pilot and help lay the groundwork for a model that expands access to affordable homeownership.”
The pilot fund, which has already started making working capital loans in California and New Jersey, will serve as a framework to address a missing component in the capital structure for nonprofit developers. Within the next two years, Habitat Capital anticipates scaling this initiative into a $50 million–$100 million national fund, creating opportunities for affiliates to deepen their impact and catalyze significant investments in affordable housing.
To learn more about Habitat Capital, please visit Habitat Capital | Habitat for Humanity.
About Habitat Capital
Habitat Capital, Habitat for Humanity International’s community development financial institution, supports U.S. Habitat affiliates in their work as affordable mortgage originators, homebuilders, sellers, and partners for housing and community solutions. Habitat Capital creates and provides financial services and capital that help underserved people unlock equitable homeownership opportunities and affordable housing solutions. By helping to remove barriers to homeownership, Habitat helps foster vibrant and diverse communities.
About Habitat for Humanity
Driven by the vision that everyone needs a decent place to live, Habitat for Humanity found its earliest inspirations as a grassroots movement on an interracial community farm in south Georgia. Since its founding in 1976, the Christian housing organization has grown to become a leading global nonprofit working in local communities across all 50 states and Puerto Rico in the U.S. and in more than 70 countries. Families and individuals partner with Habitat for Humanity to build or improve a place they can call home. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage. Through shelter, we empower. To learn more, visit habitat.org.