Nesting Ground has secured $20 million in its first investment round for a new Affordable Housing Guarantee Pool (AHGP).

The Canadian non-profit said the funding will help unlock private capital for non-profit affordable housing projects and support access to construction financing.

The first round includes commitments from institutional and private investors. Investors include Realize Capital, The Atmospheric Fund, Ottawa Climate Action Fund, and Northpine Foundation.

Nesting Ground is targeting an additional $50 million in the next round of funding.

The AHGP aims to address a major financing barrier for non-profit housing providers. Many organizations cannot take on the upfront costs and risks associated with large-scale construction.

“Everyone wants to scale non-profit housing, but to date that hasn’t been possible due to very real financial barriers,” said Graeme Hussey, president of Nesting Ground.

The guarantee pool is designed to give private investors, banks, and governments greater confidence in non-profit housing projects. Nesting Ground said the model can help projects secure construction financing without relying solely on direct lending or government grants.

The organization drew inspiration from U.S. housing finance initiatives, including the national Community Investment Guarantee Pool.

“We invested in the AHGP because it’s a promising model for what social finance can deliver at scale,” said Lars Boggild, portfolio manager, Realize Fund I, Realize Capital Partners.

Nesting Ground’s current pipeline includes 1,800 shovel-ready homes in Ottawa, Toronto, and Guelph. The projects will use modern construction methods and the organization’s mixed-income, non-profit housing model. At least 25 per cent of the homes will be affordable.