Tailored to the needs of local communities and markets with rising costs and increasing travel, the two-year program is designed to prepare emerging developers of color to pursue affordable multi-family housing developments for longtime residents through Alameda, Contra Costa, Marine, Napa, Saint Clare, San Francisco, San Mateo, Solano, and Sonoma Counties.
Participants will receive general training, including project budgeting, real estate financing, project and contractor management, legal services and community engagement, as well as local mentorship. In addition, Capital Impact is working on the development of a loan product suitable for graduates of the cohort based on their “Diversity in Development” loan product deployed in Detroit and the Washington Metropolitan area.
“There is an incredible pipeline of developers of color who are well positioned to work with communities to create housing solutions that maintain affordability and limit travel,” said Ellis Carr, President and CEO of Capital Impact Partners and CDC Small Business Finance. “Like so many other issues facing communities of color, however, systemic efforts to deny these developers access to capital, training, and networks have created barriers to realizing this potential. let’s do in Detroit and the Washington Metropolitan area, our EDI program will begin to build a more equitable real estate development ecosystem here in the Bay area. “
The application window Short of September 22, 2021 through 20 October 2021. Capital Impact will select participants based on the following guidelines. Developers must:
- Identify themselves as racial or ethnic minorities;
- Actively work in the pursuit of careers in real estate development with some experience in real estate development;
- Live in or near the main metropolitan area of the program and have a close connection to the city / region in which they work;
- Demonstrate a commitment to the revitalization of their city / region; and
- Be interested in responding to requests for proposals for real estate development opportunities with or without a development partner over the next 1-2 years.
The market analysis highlights the main issues of inequality in the development space:
Nationally, Urban Land Institute, a global real estate and land use organization, says only 5% of its US members are African American, 4.5% Asian, 8.5% are Hispanic or Latino, with the vast majority – 82% – identifying as white.
A market analysis of the Bay area region led by Capital Impact Partners further underscored the need for this program. Here are some of the key themes:
- Although the local population is predominantly Asian, Hispanic, and Black, the real estate development industry is dominated by white-owned and operated businesses.
- Deep institutional biases and structural racism have created permanent barriers for developers of color.
- The range of current capacity building programs supporting black entrepreneurs does not focus on real estate development.
- The lack of networking and peer mentoring for color developers is a big hurdle.
- Emigration from black and moderate income households impacts the ability to create inclusive communities and drains the local talent base, further limiting the ability to create wealth through the development of housing models for the workforce. work and home ownership.
Interviews conducted for the study provided the following feedback points:
- “As black developers, we are nowhere near able to compete with non-black for-profit developers. When I walk into a room… they don’t treat me as an equal. We need to. access the resources they get. ”
- “White developers can access money or have money; black people do not have the wealth or investment to enter the industry.”
- “Our region is denied a better skyline because there isn’t enough diversity in defining the skyline.”
Thoughts from an EDI graduate:
Thomas houston and Talayah Jackson, graduates of 2019 EDI Cohort in the DC area, continued to work with Capital Impact on the acquisition and development of vacant land in Washington, DC Ward 7. With nearly $ 1 million in financing through Capital Impact Diversity in Development – DMV Loan Fund, they work at develop a 17,000 square foot building with affordable housing, shops and offices.
“It is extremely important that programs like Capital Impact’s Equitable Development Initiative exist. Are there universities that offer similar courses? Absoutely. $ 10,000 certificate course? When you look at the networks and how we grew, I didn’t know any developer. I didn’t know anyone who had a $ 20 million, portfolio of 10 units. And so there is no one to teach me development. I absolutely believe that programs like EDI will help future developers think differently about development, ”Houson said.
You can hear more reflections from Houston and Jackson in this video.
A history of supporting high impact projects throughout the Bay area
Capital Impact opened its first regional office in Oakland in 1992. With more than $ 240 million By funding support for 95 projects, the organization has become a leader focused on the mission of increasing access to essential social services in disinvested communities and stimulating economic development and wealth creation. This includes working with local partners focused on health care, education, healthy food, affordable housing, and the ability of seniors to age in their communities with dignity.
One effort includes the role of Impact Capital in the Partnership for the Bay Future, a $ 500 million initiative launched by the Chan Zuckerberg Initiative, with the San Francisco Foundation, Facebook, the Ford Foundation and LISC to address critical housing needs, prevent displacement and support racial and economic inclusion through Bay area.
As part of this effort, Capital Impact helps manage the Bay Future Fund and Community Housing Fund program. These unique funds offer flexible, agile and creative approaches that support your affordable housing finance solutions. Both funds are open to non-profit housing developers, mission-aligned for-profit developers, or service providers in partnership with either that operate in San Francisco, San Mateo, Saint Clare, Alameda, and Contra Costa counties
A recent example of our regional loans includes nearly $ 5 million in the financing of Allied Housing, Inc., a developer controlled by a minority. This funding is helping Allied Housing build a project in the town of Hayward to provide 125 units of affordable supportive housing. Our support has significantly increased their impact compared to the initial plan of 46 units after successful rezoning.
In another agreement, Capital Impact provided a $ 1.3 million acquisition loan to HIP Housing to finance the $ 3.3 million purchase of a building of 10 apartments fully occupied in Redwood town. This project helps maintain affordability in a neighborhood where rent is more than double the national median due to proximity to local tech companies.
Capital Impact is also the largest nonprofit lender to federally licensed health centers across California. This includes several transactions with La Clínica de La Raza, a pillar of the community providing much-needed medical care to traditionally underserved residents since it opened in 1971. Edited by Jane garcia, who took over as CEO in 1982, La Clínica has grown from just four locations into Oakland serving more than 91,000 patients in more than 35 locations in three Bay area counties under one $ 120 million budget, and it continues to grow. Its residency programs with the best medical and dental institutions like University of California, San Francisco; the University of California, San Francisco; UOP; and the University of California, Berkeley train the future workforce, while giving La Clínica patients access to specialized care.
About Capital Impact Partners:
Through capital and engagement, Capital Impact Partners helps people create communities of opportunity that break down barriers to success. We work to advocate for key issues of equity and social and economic justice by deploying mission-focused funding, capacity building programs and impact investing opportunities.
Non-profit community development financial institution, Capital Impact has disbursed more than $ 2.5 billion since 1982. In 2020, Capital Impact launched a new business with CDC Small Business Finance under a single management team and a national strategy to reinvent traditional and traditional financial systems. Our goal is to ensure that these systems fairly serve communities of color to drive community solutions that support economic mobility and wealth creation.
Our leadership in financial and social impact has enabled Capital Impact to be rated by S&P Global and recognized by Aeris for our performance. Based at Arlington, Virginia, Capital Impact Partners operates nationwide, with local offices in Austin, Texas, Detroit, Michigan, New York, New York State, and Oakland, California.
SOURCE Capital Impact Partners