About the Family of Funds
The Bay Area Family of Funds is a regional effort, developed by the Bay Area Council, to attract private capital into low and moderate-income neighborhoods through “double bottom line” (DBL) investing. The Family of Funds leverages its investments in these communities through projects that promote smart growth, address poverty, support local businesses and clean up contaminated sites with market-based solutions.
It has raised over $215 million for DBL investments through four separate funds: the Bay Area Smart Growth Funds I & II, the Bay Area Equity Fund, and the California Environmental Redevelopment Fund. The Funds’ investors consist of banks, foundations, pension funds, insurance companies, individuals, and other corporations, and are expected to leverage $1 billion of investment in Bay Area low-and-moderate income communities over a ten year period.
These market-based investments will simultaneously address economic prosperity and environmental quality in underserved neighborhoods throughout the region. This smart growth program will engage the Bay Area’s disadvantaged communities to capitalize their underutilized workforce, land, and resources in ways that create wealth for existing low-to-moderate income community residents and contribute to continued regional health and well-being.
Investments from the Bay Area Family of Funds require “double bottom line” (DBL) returns; risk-adjusted market rates of financial return for its investors (the first bottom line) and significant economic, social, and environmental returns for the communities (the second bottom line). The second bottom line objectives are focused on the following areas:
- Geographic location: investments made in or near low-and-moderate income neighborhoods
- Community benefits: job creation, affordable housing and home ownership, joint ventures with community groups
- Economic development: catalyst for additional economic activity in the neighborhoods
- Wealth creation: employee ownership, health care, financial education
- Environmental performance: energy conservation, waste reduction, recycling, pollution prevention, and green building construction
- Community participation: e.g. internships, volunteer programs in schools and neighborhoods
- Over $215 million has been raised by four funds in the growing asset class of double bottom line (DBL) investing
- The Bay Area Family of Funds is considered a national model for regional DBL investment initiatives, highlighted by the Office of the Comptroller of the Currency (the OCC)
- Over 230 new jobs have been generated, 1,096 jobs have been retained, and over 2,300 new jobs are projected from investments by the Family of Funds
- 870 for-sale homes being built or renovated, with at least 230 units affordable to purchasers at 80% of area median income or lower
- Nearly 700 acres of land have been remediated for brownfield development