BRIDGE Housing Raises $175 Million Through Oversubscribed Bond Issue to Accelerate Affordable Housing Development Across the West Coast
BRIDGE Housing, one of the most prominent nonprofit affordable housing developers on the West Coast, has successfully closed a $175 million taxable general obligation bond issue — exceeding its initial target of $150 million after attracting strong investor demand. The issuance, officially titled Taxable Bonds, Series 2025 (Social Bonds), underscores BRIDGE’s growing influence in the capital markets and its ongoing commitment to tackling the deepening housing affordability crisis across California, Oregon, and Washington.
Originally planned at $150 million, the bond offering was expanded to $175 million after being significantly oversubscribed, signaling high confidence from institutional investors in BRIDGE’s financial stability and mission-driven impact. The offering, underwritten by Morgan Stanley, marks the largest bond issue in the organization’s history. S&P Global Ratings affirmed BRIDGE Housing’s AA- rating, reflecting the nonprofit’s “extremely strong” management practices, operational resilience, and robust liquidity position.
The proceeds from this record-breaking bond sale will play a crucial role in BRIDGE Housing’s ambitious growth plan — specifically, its goal of delivering 5,100 new affordable housing units throughout the West Coast by 2027. The funds will also support strategic acquisitions, ensuring BRIDGE continues to preserve and expand access to affordable homes for low- and moderate-income residents in some of the nation’s most expensive housing markets.
This new capital is vital to supporting BRIDGE’s growth to address the deepening housing crisis for low- and moderate-income residents on the West Coast,” said Ken Lombard, President and CEO of BRIDGE Housing. “We’re grateful to Morgan Stanley and our investors, who are demonstrating confidence in BRIDGE and a commitment to creating quality affordable homes that offer dignity and hope to residents in need.
Expanding Access to Capital Beyond Traditional Sources
This latest bond issue highlights BRIDGE Housing’s pioneering role in leveraging private capital markets for social impact. Traditionally, nonprofit affordable housing developers have relied heavily on government subsidies, tax credits, and grants. However, as the housing crisis worsens and construction costs rise, BRIDGE has strategically diversified its funding sources to accelerate development timelines and scale operations more efficiently.
By tapping into the taxable bond market, BRIDGE can mobilize capital more quickly — allowing it to acquire land, preserve existing affordable housing, and begin construction on new developments without waiting for lengthy government funding cycles. This agility is particularly valuable in regions like California and Oregon, where rapid real estate appreciation threatens the long-term availability of affordable housing.
“Diversifying our financing sources helps us move faster and act at a greater scale,” Lombard added. “The ability to secure funds independently of traditional subsidies enables us to seize opportunities and create more homes for people who need them most.”
Continuing a Legacy of Capital Markets Innovation
BRIDGE Housing has consistently been at the forefront of financial innovation in the nonprofit housing sector. The organization was the first among its peers to receive an S&P credit rating and issue taxable bonds — a groundbreaking move that paved the way for other mission-driven housing providers to follow suit.
The newly completed $175 million bond issue marks BRIDGE’s second Social Bond offering, following its landmark $100 million issuance in 2020, which established a new asset class for nonprofit housing finance. The success of these offerings underscores the growing interest among institutional investors in socially responsible investment opportunities that deliver measurable community impact.
The Social Bond designation for the 2025 issue aligns with BRIDGE’s mission and the intended use of proceeds — financing affordable and transit-oriented housing. S&P Global Ratings provided a second-party opinion confirming that the bonds meet globally recognized standards for Social Bonds, reinforcing investor confidence that proceeds will drive genuine social value.
Strategic Partnerships Strengthening Impact
Morgan Stanley, which served as underwriter for both of BRIDGE’s bond issuances, has been an instrumental financial partner. Beyond its role in underwriting, Morgan Stanley has also partnered with BRIDGE through other innovative funding mechanisms — most notably, a $250 million revolving credit facility established in partnership with the National Equity Fund (NEF). This facility has enhanced BRIDGE’s capacity to pursue both development and acquisition projects across multiple states.
“Morgan Stanley’s support demonstrates the power of aligning private capital with social good,” said Delphine Sherman, BRIDGE Housing’s Chief Operating Officer and Chief Financial Officer. “Their continued partnership allows us to operate with both agility and discipline as we expand our pipeline of affordable housing developments.”
Sherman emphasized that the latest bond issuance represents not only a financial milestone but also a strategic step toward long-term sustainability.
This Social Bond issue fits into our strategy to accelerate our mission-driven work and emerge not only bigger but also stronger to sustain growth and impact throughout the West Coast,” she said. “The proceeds will keep us on course to achieve our goal of 5,100 additional units by 2027 and support the more than 10,000 units in our overall development and acquisition pipelines.
A Proven Track Record in Affordable Housing Development
Founded in 1983, BRIDGE Housing has become a recognized leader in creating safe, healthy, and affordable communities that deliver far more than just housing. The organization currently oversees a portfolio of approximately 15,000 units across 139 properties, with an emphasis on building environments that foster long-term stability and opportunity.
In addition to providing homes, BRIDGE connects residents to a wide range of social programs and support services — including workforce development, education, healthcare access, and financial literacy — to promote upward mobility and community well-being.
The organization’s recent projects showcase this holistic approach. For example, in 2024, BRIDGE became the first nonprofit housing firm to issue tax-exempt construction bonds, raising over $70 million to finance one of Portland, Oregon’s largest affordable housing developments. That initiative demonstrated how creative financing can accelerate construction in high-demand urban areas.
Earlier this year, BRIDGE also launched a $350 million impact fund, attracting major institutional investors to acquire, preserve, and develop affordable and workforce housing across the West Coast. Together, these efforts are part of a broader financial ecosystem that integrates philanthropy, private investment, and government support to achieve lasting impact.
Responding to a Growing Regional Crisis
The demand for affordable housing has reached historic levels in West Coast cities like San Francisco, Los Angeles, Seattle, and Portland. Rising rents and property prices have outpaced income growth, leaving millions of residents — including essential workers and families — struggling to secure stable housing. BRIDGE’s projects aim to mitigate these pressures by ensuring that new developments are not only affordable but also strategically located near jobs, schools, and public transportation.
By 2027, BRIDGE expects to complete more than 5,100 additional affordable units, directly benefiting thousands of residents while contributing to local economic stability. The organization’s acquisition strategy also focuses on preserving existing housing stock that might otherwise be lost to market-rate conversion
