The Equitable Development Initiative will build a fairer ecosystem for property development in the Bay Area
The two-year program is tailored to meet the needs of local communities and markets where rising costs and displacements are on the rise, and aims to prepare emerging color developers to develop multi-family housing estates that are affordable to long-term residents everywhere Alameda, Towards the coast, Marin, Napa, Santa Clara, San Francisco, Saint Matthew, Solano, and Sonoma Counties.
Participants receive broad-based training, including project budgeting, real estate finance, project and contractor management, legal advice and community engagement, and local mentoring. In addition, Capital Impact is working on the development of a credit product tailored to cohort graduates on the basis of the credit product “Diversity in Development” that was introduced in development. Detroit and the Washington Metropolitan area.
“There is an incredible talent pool of color developers who are well positioned to work with communities to create housing solutions that remain affordable and limit displacement,” said Ellis Carr, President and CEO of Capital Impact Partners and CDC Small Business Finance. “As with so many other problems that color communities face, systemic efforts to keep these developers from accessing capital, training, and networking have created barriers to unlocking this potential Detroit and the Washington In Greater Sprawl, our EDI program will begin here in town by building a more equitable ecosystem for real estate development Bay area. “
The application window runs from 09/22/2021 by October 20, 2021. Capital Impact selects participants based on the following guidelines. Developers should:
- Identify yourself as a racial or ethnic minority group;
- Actively work on further careers in real estate development with some real estate development experience;
- Live in or near the main metropolitan area of the program and have a strong connection with the city / region in which they work;
- Show commitment to the revitalization of your city / region; and
- Interested in answering requests for offers for real estate development opportunities with or without a development partner in the next 1-2 years.
The market analysis highlights the most important problems of inequality in the development space:
At the national level, the Urban Land Institute, a global real estate and land use organization, states that only 5% of its US membership are African American, 4.5% Asian, 8.5% Hispanic or Latino, with the vast majority – 82% – identify as white.
A market analysis of the Bay area The region run by Capital Impact Partners further underscored the need for this program. Below are some of the most important issues:
- Although the local population is mostly Asians, Hispanics and blacks, the real estate development industry is dominated by white companies.
- Deep institutional bias and structural racism have created permanent barriers to color developers.
- The current suite of capacity building programs to support black entrepreneurs does not focus on real estate development.
- The lack of networking and peer mentoring for color developers is a significant obstacle.
- The brain drain of both black and low-income households affects the ability to create inclusive communities and deprives the local talent base, further limiting the ability to build wealth through the development of home and home ownership models for workers.
The interviews conducted for the study provided the following feedback points:
- “We, as black developers, are nowhere near competing with non-black for-profit developers. When I walk into a room, they don’t treat me equally. We need access to the resources they get.”
- “White developers have access to money or have money; blacks don’t have the wealth or investments to get into the industry.”
- “Our region is denied a better skyline because there is not enough diversity in who defines the skyline.”
Considerations of an EDI Graduate:
Thomas Houston and Talayah Jackson, 2019 EDI cohort DC alumni, worked with Capital Impact on the acquisition and development of a vacant lot in Washington, DCs Station 7. With almost $ 1 million With funding from Capital Impact’s Diversity in Development – DMV Loan Fund, they are working on the development of a 17,000 square meter building with affordable housing, retail and office space.
“It is extremely important to have programs like Capital Impact’s Equitable Development Initiative. Are there universities that offer similar courses? Absolutely $ 10,000 Certificate course? If you look at networks and how we grew up, I didn’t know any developers. I didn’t know anyone who had one $ 20 million, 10-unit portfolio. And so there is no one who teaches me anything about development. I absolutely believe programs like EDI will help future developers think differently about development, “said Houseon.
You can hear more reflections from Houston as well Jackson In this video.
A history of supporting high impact projects throughout Bay area
Capital Impact opened its first regional office in Oakland in 1992. With more than $ 240 million By funding 95 projects, the organization has grown into a task-oriented leader improving access to critical social services in disinvested communities and promoting economic development and wealth creation. This includes working with local partners who focus on health care, education, healthy eating, affordable housing, and the ability for seniors to age gracefully in their communities.
One of the efforts includes Capital Impact’s role in partnering for the Bay it Future, a $ 500 million Initiative of the Chan Zuckerberg Initiative, together with the San Francisco Foundation, Facebook, Ford Foundation and LISC, to address critical housing needs, prevent displacement and support racial and economic inclusion around the world Bay area.
As part of this effort, Capital Impact is helping manage the equity Bay it Future Fund and Community Housing Fund program. These unique funds offer flexible, flexible and creative approaches that support your financing solutions for affordable housing. Both funds are open to nonprofit housing developers, on-order for-profit developers, or service providers who work with both of those involved in San Francisco, Saint Matthew, Santa Clara, Alameda, and Towards the coast Counties
A recent example of our regional lending includes almost $ 5 million in the financing to Allied Housing, Inc., a minority controlled property developer. This funding is helping Allied Housing build a project in Hayward Town to provide 125 units of affordable supportive housing. Our support has helped to significantly increase its impact over the original plan of 46 units after a successful rezoning.
In another deal, Capital Impact a $ 1.3 million Acquisition loan to HIP Housing to finance the $ 3.3 million Purchase of a fully rented 10-apartment apartment in Redwood City. This project is helping to maintain affordability in a neighborhood where rent is more than double the national median due to the proximity of local tech companies.
Capital Impact is also the largest nonprofit lender to government approved health centers across the country California. These include several transactions with La Clínica de La Raza, a pillar of the community that has been providing much-needed medical care for traditionally underserved residents since it opened in 1971 Jane Garcia, who took the helm as CEO in 1982, is La Clínica of just four locations in Oakland more than 91,000 patients in more than 35 locations in three Bay area Counties under a $ 120 million Budget and it keeps growing. His residency programs with leading medical and dental institutions such as University of California, San Francisco; the University of California, San Francisco; UOP; and the University of California, Berkeley train the future workforce and at the same time give La Clínica patients access to special treatments.
About Capital Impact Partner:
Through capital and commitment, Capital Impact Partners supports people in building communities of opportunity that overcome barriers to success. We advocate for key issues of equity and social and economic justice through our mission-driven finance, capacity-building programs, and impact investing opportunities.
Capital Impact, a nonprofit financial community development institution, has more than. paid off $ 2.5 billion since 1982. In 2020, Capital Impact founded CDC Small Business Finance, a new company under a leadership team and a national strategy to reinvent traditional and established financial systems. Our goal is to ensure these systems do justice to colored communities in order to advance community-led solutions that support economic mobility and wealth creation.
Our leadership in creating financial and social impact has resulted in Capital Impact being rated by S&P Global and recognized by Aeris for our performance. Headquarters in Arlington, Virginia, Capital Impact Partners operates nationally, with local offices in Austin, TX, Detroit, Michigan, New York, NY, and Oakland, California.
Learn more at www.capitalimpact.org and www.investedincommunities.org.
SOURCE Capital Impact Partner