CareSource, a nonprofit multi-state managed care plan, announced Tuesday it is committing $50 million in investments to affordable housing projects across the United States. All of the investments in the portfolio will be focused in locations with either a high density of CareSource members, underserved populations, or hard to serve geographies.
“Right now, there is no county in the U.S. where a person making minimum wage working full time can get an affordable two-bedroom apartment,” said Erhardt Preitauer, president and CEO, CareSource. “We are now able to be on the leading edge in demonstrating how housing stability, quality, safety and affordability affect health outcomes, as do physical and social characteristics of neighborhoods.”
In the U.S. on average, for every 100 extremely low-income people searching for affordable housing, there are only 36 affordable units available. The COVID-19 pandemic has only worsened the number of families who are housing insecure. An April 2020 study by Washington University in St. Louis suggests individuals are now facing increased housing hardship such as evictions, delayed rent or mortgage payments, and unexpected utility payments and home repairs.
CareSource’s announcement follows years of affordable housing support through CareSource Foundation grants. Earlier this year, the organization also announced its role as an investor in the $100 million housing action fund administered by the Affordable Housing Trust for Columbus and Franklin County, which provides below-market financing for affordable housing development.
“While it’s unusual for a nonprofit like CareSource to invest this way, we feel strongly that it makes good financial sense for the organization,” said Dave Goltz, chief financial officer, CareSource. “CareSource is not only diversifying existing investment dollars but also aligning our investments with our mission and better serving members.”
The $50 million will be spread among its current markets including Ohio, Indiana, Georgia, Kentucky and West Virginia as well as new markets as the organization grows its footprint.
