Financial institution of America, in partnership with Enterprise Group Companions, has introduced a $60 million funding in help of Equitable Path Ahead, a five-year initiative geared toward advancing racial fairness in housing.
To extend entry to capital and profession alternatives for BIPOC leaders creating reasonably priced, multi-family, and supportive housing throughout the nation, the funding will present $30 million in loans and $30 million in fairness financing. To that finish, Financial institution of America will companion with Enterprise to offer Low Revenue Housing Tax Credit score capital and debt financing to immediately supply, construction, and shut offers with BIPOC builders searching for versatile capital.
“Along with Financial institution of America Group Improvement Banking, we are going to work to shut racial disparities by investing in housing suppliers who’re on the bottom and engaged with their communities, but lack monetary and social capital,” mentioned Enterprise CEO Priscilla Almodovar. “To take action, we have to rebalance each energy and revenue in our trade. At the moment, lower than 2 p.c of actual property administration companies are minority-owned, but Black households comprise practically 50 p.c of federally assisted housing and make up 13 p.c of the nation’s inhabitants. Enterprise will leverage Financial institution of America’s funding and our personal capital, experience, and distinctive end-to-end platform to do our half.”
“This effort additional accelerates the financial institution’s work already beneath option to deal with racial equality and financial alternative by direct actions, investments, and work to catalyze comparable efforts throughout the personal sector,” mentioned Maria Barry, neighborhood growth banking nationwide govt at Financial institution of America. “Our objective with this initiative is to play a key function in serving to to drive new pipeline and monetary capabilities of BIPOC builders.”