Bank of America Providing $60 Million Fund for BIPOC Affordable Housing Developers
Bank of America Community Development Banking, in partnership with Enterprise Community Partners, is investing $60 million – $30 million in loans and $30 million in equity financing – to support Enterprise’s Equitable Path Forward, a five-year initiative to help facilitate racial equality in housing. 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 Community Development Banking is the first bank to launch a fund with dedicated financing and support to BIPOC developers. It will partner with Enterprise to provide much-needed Low Income Housing Tax Credit capital and debt financing to directly source, structure and close deals with BIPOC developers, especially emerging BIPOC developers seeking both flexible capital and technical assistance.
This commitment complements Bank of America’s $1.25 billion, five-year commitment to help advance racial equality and economic opportunity in Black, Hispanic-Latino and Asian communities with a focus on affordable housing, health and healthcare, jobs/reskilling and small business.
“This effort further accelerates the bank’s work already underway to address racial equality and economic opportunity through direct actions, investments and work to catalyze similar efforts across the private sector,” said Maria Barry, Community Development Banking national executive at Bank of America. “Our goal with this initiative is to play a key role in helping to drive new pipeline and financial capabilities of BIPOC developers.”
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.
“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. “To do so, we need to rebalance both power and profit in our industry. 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. Enterprise will leverage Bank of America’s investment and our own capital, expertise and unique end-to-end platform to do our part. Thanks to the Bank of America team for their vital support of our efforts to make home and community steppingstones to more.”
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Equitable Path Forward is a five-year, $3.5 billion nationwide initiative to help dismantle the deeply-rooted legacy of racism in housing – from the types of homes that are built, where they’re built, who builds them, and the wealth that is generated from them. The multipronged initiative establishes an equitable path forward for BIPOC and other historically marginalized housing providers by filling the gaping capital gap from decades of systemic racism, strengthening providers through advisory services and other nonfinancial support and creating new career pathways to diversify leadership in real estate.
Anu Ahluwalia, Bank of America