TruFund Financial Services, Inc. announced an $11.5 million expansion last week of the Impact Developers Fund (IDF) with commitments from three new investors, including The Kresge Foundation. The announcement also highlighted increased commitments from the Ford Foundation and Tru-Capital Investment Fund, the fund’s general partner. Overall, the fund’s size now totals $37.5 million.

The fund empowers real estate developers, including BIPOC and women-owned developers, who traditionally lack access to capital and support from conventional sources. It launched in 2020 with $26 million in initial capital from Morgan Stanley and the Ford Foundation. Since then, IDF has demonstrated an unwavering commitment to supporting developers focused on creating high-quality, affordable housing throughout the United States. With the additional capital, IDF will have a greater impact on underserved communities and promote equitable access to real estate development opportunities.

The first round of capital was deployed across five visionary investees dedicated to advancing affordable housing projects. These developers have secured over $130 million in additional operating or project financing. This funding has been instrumental in strengthening their financial standing and fueling their efforts to create sustainable, inclusive, and vibrant communities.

“The expansion of the Impact Developers Fund is a testament to the power of collaborative efforts in achieving meaningful change,” said James H. Bason, President and CEO at TruFund Financial Services, Inc. “With the continued support of our valued partners, Morgan Stanley and the Ford Foundation, along with the inclusion of the Kresge Foundation and Carver Bancorp, Inc., we are now better equipped to drive positive social and economic outcomes through real estate development. This will empower even more visionary entrepreneurs and developers from underrepresented backgrounds to create lasting impact in their communities.”

“Kresge’s flexible equity capital will enhance the capacity of historically under-resourced developers, including BIPOC- and women-led and minority-led developers’ capacity to effectively grow their housing real estate portfolios,” said Tosha Tabron, Kresge social investment officer. Kresge’s Social Investment Practice made a $3 million equity investment into the fund. “IDF’s intermediary investment approach is critical to supporting emerging developers, who with the right capital, can scale their work in communities and be competitive in the market alongside established traditional and affordable housing developers.”

See the full news release here.