BEACoN is NFF’s strategy to support nonprofits and mission-aligned developers creating community assets at all stages of development, whether planning, acquisition, construction, or renovation. NFF’s capital and technical assistance help institutions and other local groups invest in community-owned real estate – such as land, affordable housing, and facilities – to achieve community goals and build local wealth and power.
“Community-centered asset ownership narrows the wealth gap in low-income communities and communities of color. Financially secure nonprofits provide jobs for diverse residents, retain local ownership of critical community assets, and invest in neighborhood stability and wealth.”
A wealth of solutions
Community control of assets can take many forms. Examples of BEACoN projects include:
- Predevelopment and acquisition financing for a community development corporation to plan for and buy a property for an affordable housing or supportive housing project.
- A construction loan to a nonprofit health center whose physical presence in a community is critical to preserving accessible health services for local, low-income residents.
- Financing for a green energy project built by a tribal development authority on tribal land, keeping most of the profits in the community rather than in the hands of private investors and sustaining the tribe for generations to come.
- Working capital for a cooperatively owned and community-run grocery store that preserves or enhances a neighborhood’s access to healthy food.
- A renovation loan for a local group that is turning a vacant retail center into a charter school to serve the neighborhood.
- One-on-one technical assistance to support a nonprofit with their plans to purchase property for the first time.
- Sharing learnings to advocate for practices and capital access that support local ownership, resident wealth, and community well-being.
Affordable housing being constructed by New Jersey nonprofit Sierra House.
Help communities control their assets
BEACoN builds on NFF’s 45 years of experience financing and advising nonprofit clients through facility acquisition, renovation, and construction. You can help build community power by funding or investing in this work with NFF. Email [email protected] to discuss opportunities to support BEACoN projects.
Why community ownership of assets?
Communities shape who you know, where you go to school, and where you make and spend your money – and they have a profound effect on the life outcomes of residents.
Across the United States, low-income communities, including rural communities and communities of color, have been disinvested of wealth and property over many generations. This has a ripple effect into the present day in the form of wealth inequality, health disparities, and other inequities. And many of these communities are under the threat of gentrification; institutional investors are inflating property values and rents beyond what long-time residents and local businesses can afford.
BEACoN attempts to address these challenges by putting land, facilities, and housing back under community control, stewarded by community-centered nonprofits. Communities that control these assets can leverage them to reduce speculative outside investment and keep long-time residents in place, invest in residents’ needs, and build long-term wealth and well-being.
SEAMAAC’s community gardens create opportunities to grow crops that are hard to find in local grocery stores.
Goals of community ownership
- Retain assets in the community and build generational wealth.
- Prevent residents from being displaced by the forces of gentrification and speculative investment.
- Increase availability of affordable housing and other community facilities.
- Sustain local workforces and preserve community services.
- Responsibly grow nonprofit balance sheets and financial strength.
Build local networks and collective advocacy.
BEACON benefits
When local nonprofits control community resources, they:
- Provide permanent jobs and services in their communities.
- Create and preserve affordable housing by taking property off the speculative market.
- Reduce systemic vacancy and promote vibrant communities by investing in buildings and other community spaces.
- Redevelop blighted or underutilized assets for housing or critical community services.
- Create public spaces for community events and programs.
Members of Grand Street Settlement cut the ribbon to open their newly renovated building.
Get involved
Want to fund or invest in our work? Email [email protected] to discuss opportunities to support BEACoN projects.
BEACoN results
- Leveraged a $5 million program-related investment (PRI) and $500,000 grant from Robert Wood Johnson Foundation to provide predevelopment and acquisition loans at below-market interest rates for nonprofits and developers addressing New Jersey’s affordable housing shortage and providing critical social services.
- Offered training, capacity-building, resources, and connections to pro bono advisers to the South LA Innovation Collaborative for Homelessness as they develop community facilities and affordable housing.
- Provided a $200,000 predevelopment loan to Fideicomiso Comunitario Tierra Libre as part of our ongoing support for California community land trusts.
You can help build community power
NFF seeks funding partners and investors who can provide flexible, low-cost capital and/or grants to help us:
- Support lending to nonprofits and mission-aligned for-profit developers. Flexible, low-cost capital and PRIs enable us to meet the capital needs of more borrowers by offering lower-interest loans that are critical to nonprofits acquiring, renovating, and maintaining affordable housing and other assets.
- Provide technical assistance that prepares nonprofits and developers for asset ownership. Grants allow us to train emerging developers on the fundamentals of facility management, prepare nonprofit borrowers to take on debt, and connect clients to other capital providers and learning communities.
- Invest in BEACoN’s expansion. Operating grants help us build pipelines of borrowers, manage loan funds, create community advisory committees, and refine our loan and technical assistance products.
Let’s get to work! Email [email protected] to help support community control of assets.
Client spotlight
Former NFFer Kenneth Bland with Keely Freeman, CEO, Sierra House.
NFF provided Sierra House with $375,000 in loans to support affordable housing in Newark, New Jersey, with more to come. Learn about NFF’s work with Sierra House.
“Going to a finance agency that understands our needs, understands our budget, understands our financials, and that can provide a product that’s mission driven so that we can better serve our communities together, is absolutely amazing.”
Keely Freeman, CEO, Sierra House
You can help build community power.
Email [email protected]