A Game-Changer in Housing: AHF’s Investment in the Community Solutions Large Cities Initiative

 

At Alliance Healthcare Foundation (AHF), we are committed to solutions that drive meaningful, long-term change in housing affordability and accessibility. One of the most exciting projects in our recent housing efforts has been our partnership with Community Solutions Large Cities Initiative, BD Impact Real Estate, and BQuest Foundation to acquire Market Street Village.

This property acquisition is a significant step forward in addressing homelessness and preserving affordable housing in San Diego. By acquiring Market Street Village, we’ve helped ensure that over 200 residents remain in stable housing, including the net new addition of up to 100 units dedicated for individuals exiting homelessness, with the remainder for residents earning 80% of the Area Median Income (AMI) or below.

Without this intervention, the property would have been flipped to market-rate housing, putting current tenants at risk of displacement and exacerbating the city’s housing crisis. Instead, we’ve not only helped preserve affordability but also increased housing opportunities for those most in need.

The Impact is Twofold:

• Preventing future homelessness by keeping vulnerable residents housed
• Expanding housing access to those currently experiencing homelessness

Market Street Village is a Unique Housing Model

This initiative is not just another affordable housing development—it is a tested, innovative model that solves common barriers to creating and preserving affordable housing at scale, while simultaneously helping to house individuals experiencing homelessness in safe, stable homes. Here’s what sets Market Street Village apart:

• Speed and Cost-Efficiency

Traditional Low-Income Housing Tax Credit (LIHTC) models can take 5-7 years to deliver units, while Market Street Village achieves housing placements much faster and at a significantly lower cost.

Within just one year, the property will provide homes for 36 veterans exiting homelessness and a total of 114 veterans in three years—all at a cost of just $399,000 per unit, well below typical new construction costs.

By acquiring and repurposing existing properties, this model bypasses many of the costly and time-consuming challenges of new development, such as land acquisition, permitting, and construction delays.

• Long-Term, Mission-Driven Ownership

Unlike private developers who may sell properties for profit, Market Street Village has a long-term affordability strategy. Investors will receive their return within 7-10 years, but the property will remain permanently affordable. The current owner, Wakeland Housing & Development Corporation, is a mission-driven nonprofit specializing in high-quality supportive housing. This ensures that Market Street Village will continue serving San Diego’s most vulnerable residents for decades to come.

• A Direct Pipeline to Those in Need

There are currently over 1,000 veterans experiencing homelessness in San Diego. Market Street Village will help move them into stable housing as soon as units become available.

This initiative is deeply connected to San Diego’s housing placement system, working directly with the VA and local homelessness service providers to ensure those most in need are prioritized for housing.

• Middle-Income Affordability & Rent Reductions

Market Street Village isn’t just about creating new housing for those exiting homelessness—it also provides relief for existing tenants.

All units are restricted to individuals earning at or below 80% AMI, with rent caps that prevent excessive rent burdens.

Thanks to the property’s tax-exempt status, many existing tenants have actually seen rent reductions—a major relief for residents who were previously spending over 30% of their income on rent.

This is a win-win: it prevents displacement of current tenants while increasing access to affordable housing for those in need.

• Preserving Affordable Housing & Preventing Displacement

Had this property been purchased by a for-profit developer, rents would have increased dramatically, forcing out lower-income residents.

Instead, Market Street Village remains permanently affordable—preserving critical housing stock in a city where affordable units are rapidly disappearing.

• A Proven Model Backed by Trusted Institutions

The Community Solutions Large Cities Initiative is not just an experimental approach—it has been tested, validated, and endorsed by major institutions:

• Wells Fargo and Truist have rigorously underwritten this model
• The Ford Foundation, UnitedHealth Group, and Kaiser Permanente have all invested in the Community Solutions Fund
• Locally, Alliance Healthcare Foundation and BQuest Foundation provided deeply subsidized investment capital to catalyze the Market Street Village acquisition here in San Diego.

The takeaway? This is a financially sound, scalable, and impactful solution that has gained the trust of some of the most conservative financial and philanthropic institutions in the country.

• Eliminating Development Risk

One of the biggest challenges with traditional affordable housing projects is development risk—ranging from cost overruns to fluctuating interest rates on construction loans.

Market Street Village bypasses these risks entirely by acquiring an existing property with known operational costs. This ensures that the financial model is predictable, sustainable, and replicable.

Investors and funders can be confident in the long-term success of this model, making it an attractive and scalable solution for tackling homelessness.

AHF’s Role in a Transformational Housing Future

At Alliance Healthcare Foundation, we believe that housing is a critical element of healthcare. Without stable housing, individuals cannot access proper medical care, maintain employment, or live healthy lives.

That’s why we’ve invested in this groundbreaking approach—one that:

• Expands housing quickly & cost-effectively
• Prevents displacement & homelessness
• Creates long-term affordability & sustainability

This model is working, and we’re just getting started.

Want to learn more about how AHF is transforming housing solutions? Stay connected and explore how philanthropy and impact investing can drive real change.

Join the movement. Spread the word. Be part of the solution.

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