Bank of America in partnership with Enterprise Community Partners is investing $60 million to help facilitate racial equality in housing. This includes $30 million in loans and $30 million in equity financing. The investment will increase access to capital and career opportunities for BIPOC (Black, Indigenous, and People of Color) leaders developing multi-family, affordable and supportive housing across the country.
Bank of America’s Community Development Banking (CDB) is the first bank to launch a fund with dedicated financing and support to BIPOC developers. It has already made a significant impact by investing in such communities through initiatives such as investing in 12 minority depository institutions and community development financial institutions to provide lending and other banking services to those who may not qualify through traditional lenders. In 2020, CDB-financed developments produced more than 13,800 housing units. More than 13,000 were affordable, including 6,000 green housing units, 2,400 housing units for seniors, 1,600 housing units for veterans, special needs, and the formerly homeless. 1,650 of these affordable housing units were developed by Minority and Women-Owned Business Enterprises. “We are committed to catalyzing economic opportunities and change for diverse stakeholders in the communities we serve. This fund will help emerging BIPOC developers with financing and technical assistance as they create affordable housing, which will help move their businesses forward while having a sustainable and transformative impact on their communities”, said Maurice Coleman, Senior Vice President of Community Development at Bank of America. This BIPOC Affordable Housing Development initiative closely aligns with Bank of America’s $1.25 billion commitment to advance racial equality and economic opportunity in Black, Hispanic-Latino, and Asian communities.
The Enterprise’s Equitable Path Forward is a five-year, $3.5 billion nationwide initiative to help dismantle the systemic racism in housing, from who builds these housing projects, where these houses are located, and how generation wealth is built through real estate. The multipronged approach creates an equitable path for traditionally marginalized communities and BIPOC individuals by decreasing the capital gap often seen within the real estate market. “Today, less than two percent of real estate management firms are minority-owned, yet Black households comprise nearly 50% of federally-assisted housing and make up 13% of the nation’s population. Together with Bank of America Community Development Banking, we will work to close racial disparities by investing in housing providers who are on the ground and engaged with their communities yet lack financial and social capital,” said Priscilla Almodovar, chief executive officer, Enterprise. Both Enterprise and Bank of America will leverage their national networks and resources to help BIPOC developers deepen and advance relationships with industry stakeholders and local government agencies.
BIPOC Affordable Housing Developers seeking additional information on this initiative can contact Maurice Coleman, SVP Of Community Development at Bank of America at maurice.l.coleman@bofa.com or www.bankofamerica.com.
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