1. Planning for Sustainable Affordable Housing Stephen Giustizia Manager, Housing Services City of London OMSSA-MMAH Housing & Homelessness Resource Centre Forum Local Planning and the Future of Housing in Ontario March 27, 2014 Norm Tasevski Co-Founder and Partner Purpose Capital

2. THIS PRESENTATION…. Agenda: 3 KEY STEPS: 1.KNOW THE WHY...Re-Thinking Need 2.KNOW THE WHAT...Re-Conceiving Opportunities, Directions and Goals 3.KNOW THE HOW....Re-Orienting from “Needs” to “Goals”. A Re-THiNK: 4. IMPACT INVESTING AND AFFORDABLE HOUSING HARNESS THE LEARNINGS FROM ANOTHER SM: 5. THE CHIMP, THE FROG, AND THE GOLDFISH

3. A Growing Need for Available New Affordable Rental Housing Stock Challenged in meeting housing target outcomes GROWING NEED FOR AFFORDABLE HOUSING Step 1: The “WHY” Defining Need The Need – 1 st Lens (the one we know)

4. - Creates long term safe affordable homes for those in need. - Focuses on sites that are integrated in communities and that meet environmental and community needs - Invests and attracts private funds toward local developments, employment, and skilled labour “Value” defines the needs into Measurable Areas for Outcomes Consider Housing’s Triple Bottom line… Social Environmental/ Community Economic Step 2: The “WHAT” Defining Value and Measures

5. The Path to Sustainable Development Land Tools Development Tools and Incentives New Financial Tools Competencies and Governance Step 3: The “HOW”? Alignment - Broader Community and Corporate Plans

6. Summary 1. WHY..... The question most frequently asked. - A measurable difference - Specific outcomes - Linkage to needs, issues and strengths 2.WHAT....A clear starting mandate and picture - A scalable solution - a starting point toward higher potential - A simple structure/governance model - Defined competencies/administrative tools 3.APPROACH/HOW - A clear business model - Focus on start-up and initial needs, plans, capacity, financials - What gets measured gets done...but goldfish don’t measure. - Creating the picture...use potential projects and initiatives

7. 4: The ReThink - Creating the NEW Storyboard Now…a Re-Think…

8. Re-Thinking Need - A new “impact investor” lens The Tenant Lens The “Impact Investor” Lens The Re-Defined Need: How to make affordable housing an attractive investment opportunity! Impact Investing and Affordable Housing

9. Re-Thinking Opportunity - A new “impact investor” lens FINANCIAL CAPITAL MARKETS Financial Return Financial Performance Measurement Debt Equity Retail (mutual funds, online brokers) Institutional (Exchanges, Alternative Trading Systems) About 5% FINANCIAL CAPITAL MARKETS $50 Trillion SOCIALLY RESPONSIBLE INVESTING Social Screening and Shareholder Advocacy $7 Trillion RETURN MEASUREMENT PLATFORMS INVESTMENT TYPE AVERAGE TRANSACTION COST MARKET SIZE IMPACT INVESTING MARKETS Financial + Social Return Financial + Social Measurement Debt Equity Retail (online micro finance) Institutional (Impact Funds, emerging platforms) About 10% $5 Billion PHILANTHROPY (GIVING MARKETS) Social Return Social Performance Measurement Grants Retail (offline channels, online giving, Donor Advised Funds) Institutional (Foundations) About 30% $300 Billion SOCIAL CAPITAL MARKETS / MARKETS FOR GOOD X $0.5 - $1 Trillion Impact Investing and Affordable Housing

10. Re-Thinking Goals - A new “impact investor” lens One view of II integration… A second view of of II integration… A traditional portfolio… Impact Investing and Affordable Housing

11. 5: THE LEARNINGS…. ( With help from “The Nature of Things”) 3. Work with the GOLDFISH… We live amongst busy creatures with short memories, So, relentlessly repeat, repeat, repeat. 1.Think like a CHIMP... Adapting and innovating - Look for new alliances and tools. 2.Warm the FROG slowly… or it will jump! Learn the value propositions, interests, and perspectives of other stakeholders.

12. Questions?