As the year winds down, we at Capital Impact Partners are reflecting on the relationships and partnerships that help communities across California thrive. From affordable housing to health care to healthy food, all of our partners have helped us expand economic, racial, and social equity for the communities that we serve. Read more about some of our work in California this year, and thanks you being our collaborators and supporters. Happy New Year!
Financing That Fosters Opportunity
Preserving and Expanding Affordable Housing for Bay Area Communities
While the San Francisco Bay Area’s affordable housing crisis continues, mission-driven organizations like Community Development Financial Institutions (CDFIs) are actively working to address it. Capital Impact, Local Initiatives Support Corporation (LISC), and the Corporation for Supportive Housing have joined together to support the Bay’s Future Fund (BFF), part of a larger a $500 million effort focused on addressing this issue.
As part of the Partnership, Capital Impact has committed $50 million in flexible, mission-driven capital to help developers preserve and produce thousands of affordable housing units in the next 5 to 10 years. Our community-led, inclusive growth strategy will help ensure that residents can live close to employment, shopping, and critical social services.
Ensuring a Healthier California for All
Supporting community clinics and health centers helps communities without access to essential social services live healthier lives and build wealth. This has been Capital Impact’s focus since 1985, providing us with considerable experience to meet the needs of health care providers big and small.
In partnership with The California Endowment, Capital Impact provides loans with flexible terms and low-cost rates to single and multi-site health care operators through the Healthier California Fund. Loans range from $500,000 to $6 million, and financial support for technical assistance is also provided.
We also partner with the California Primary Care Association and The California Endowment to create the CPCA Ventures Loan Fund, a loan program for health care facility projects, equipment purchases, and working capital financing. Health center operators can access loans of up to $1 million for everything from facility acquisition to construction to expansion, as well as equipment and technical assistance.
If your organization is interested in learning more about any of our mission-driven lending efforts in California, reach out to Cameron Wilson at cwilson@capitalimpact.org.
SOCAP 2019: “We Can Do Better. We Can Be More Courageous”
“’We’re doing good—isn’t that enough?’” is typically the response we get when we try to move our organization forward in terms of addressing racism. No— the short answer. It’s not enough,” stressed Capital Impact’s CEO Ellis Carr to a room full of individuals focused on social impact at SOCAP 2019.
It is this kind of critical examination of our work that is required of us if we are going to more effectively support communities that have experienced decades of systemic disinvestment and bias. CDFIs were born out of the civil rights movement, but years of becoming more “professional” and maintaining relevancy as lenders has caused our sector to stray from our core values of fostering economic opportunity and vibrancy for communities.
“We can do better. We can be more courageous in this space. As much progress as has been made, there is still much to be achieved. I don’t see as many CDFIs standing with activists as previous generations,” Ellis noted. “At Capital Impact, we are beginning to align our work with racial justice and putting resources toward that.”
Follow along in future communications as we continue on this journey to be more effective in addressing issues of racial and social justice.
The Power of Co-ops to Increase Racial Equity
Capital Impact’s Cooperative and Communitiy Initiatives Manager Alison Powers similarly addressed this issue when it comes to low-wage and exploitative working conditions that many of our community members face. In a blog published in partnership with SOCAP, Alison highlighted the power of co-ops to transform the future of work and increase racial equity, particularly for communities of color.
We Are All Immigrants: Standing in Solidarity with Communities to Create Equitable Opportunity
With the exception of our Native American sisters and brothers, we are all immigrants in this land. This is important to remember as the conversation around immigration continues to roil. While some talk about building walls, many immigrants are changing the face of this country for the better, starting businesses, creating jobs, and enriching our cultural fabric. In our latest blog, we discuss how our mission-driven focus leads us to build communities and support our neighbors, no matter where they come from.
As older adults age, especially for those who are struggling economically, social isolation and nutrition issues are real barriers to long-term health. Meals on Wheels (MOW) provides services that help older adults age with dignity in their own homes for as long as possible. Most people know Meals on Wheels through its meal program for older adults, but they also provide safety checks, nutrition counseling, social work, and companionship for both older adults and adults with disabilities. In San Francisco, MOW delivers healthy meals twice daily to more than 3,600 low-income seniors and adults with disabilities. In the third quarter, we supported MOW with a $16 million loan to construct a new kitchen that will double its daily meal production.
Meet Our Local Team
Cameron Wilson, Business Development Officer
Cameron took on the role of Business Development Officer for California in October 2019. He supports Capital Impact’s lending activities across California. Cameron comes to us with more than a decade of experience with Federal Housing Administration multifamily properties. Prior to working at Capital Impact, Cameron worked for three years in conventional lending.
Did you know?
Cameron has a very green thumb, loves performing arts, and builds electric bikes.
Favorite things to see and do in Oakland?
Anywhere that you can find mountain bike trails in the hills of Oakland, CA, there is a good chance you will find Cameron on one of his bikes, loaded down with gear and heading out for a 50+ mile ride. If he’s not on the bike trails in Oakland, the entire Bay Area is full of world-class biking adventures.
This year, we have deepened our commitment to our D.C. communities to support their efforts to build power and achieve equity and prosperity. As we end this year and look to create even greater impact in the coming year, our efforts remain focused on improving housing, community development, and entrepreneurship for District and area residents so that everyone, no matter where they live, can succeed.
Working with District Residents to Preserve Affordable Housing
In the face of dwindling affordable housing options, working with community members across Washington, D.C. to preserve affordable housing is augmenting the power of our neighbors while expanding opportunities for building wealth. As a D.C. Affordable Housing Preservation Fund (AHPF) manager for the mayor, we have helped District residents maintain the housing that they have often lived in for years.
A unique aspect of the Fund is its use of the Tenant Opportunity to Purchase Act (TOPA). The Act gives residents of for-sale, multifamily, residential properties the right of first refusal to buy their properties, allowing them to work with mission-driven developers to purchase their buildings. This helps keep rents affordable and prevents residents from being displaced in the face of rapid gentrification in mixed-income neighborhoods.
A great example of this is 1101 Euclid. The building was originally constructed in the 1900s; over the past several years, the neighborhood has experienced a rapid loss of affordable housing, and the building has fallen into disrepair. Through our AHPF, Capital Impact provided a $3.2 million loan, helping the tenants work with black-owned developer Banneker Ventures to acquire their building and make critical repairs while maintaining affordability for up to 78 residents.
Another is a building on Champlain St. in Adams Morgan in Ward 1, which has provided extremely low-rent housing to individuals and families for years. The neighborhood has experienced considerable gentrification and increased home prices, putting this vital resource at risk. When the building came up for sale, Capital Impact provided a $6.5 million loan and worked with MED Developers to acquire the building so that tenants who want to remain in their homes and community can do so. Without that affordability, these community members would not be able to afford to stay. The loan will allow the developer to make critical repairs to the building while maintaining deep affordability of the building rents.
Located in Congress Heights, Worthington Woods is preserving 394 units of affordable housing for more than 900 renters. It is also near shops, groceries, and three bus lines. The Worthington Woods Tenant Association assigned their TOPA rights to the Montgomery Housing Partnership (MHP) in exchange for a commitment to preserve the property as affordable, make improvements, and avoid tenant displacement. Capital Impact provided MHP with a $6.1 million loan as part of a $40 million New Markets Tax Credit transaction to purchase the property.
► Learn More about Our Affordable Housing Financing in D.C.
Expanding Opportunity for Real Estate Developers of Color in the Washington Metro Area
Exciting news! We recently launched the first cohort of our Equitable Development Initiative (EDI) in the Washington Metropolitan area. Modeled after our successful program launched in Detroit in 2017, EDI helps local minority real estate developers—who represent the region’s diversity—take a leadership role in shaping the development landscape within the local context. As with EDI-Detroit, we recognized that developers of color in the D.C. area have fewer opportunities to participate in the region’s booming real estate market. Through the two-year program, 35 participants will receive broad-based training, including project budgeting, real estate finance, project and contractor management, legal services, and community engagement.
Alongside supporting real estate developers of color, we joined JPMorgan Chase to announce the expansion of the Entrepreneurs of Color Fund (EOCF) in the Washington, D.C. area. The Fund will support local minority entrepreneurs from northern Virginia to Baltimore to drive minority business growth through access to capital and technical assistance. With Capital Impact working as fund manager, the Latino Economic Development Center (LEDC), the Washington Area Community Investment Fund (Wacif), and the Harbor Bank of Maryland will provide low-cost capital with business advisory services, including networking support and business coaching to minority small business owners in the region.
JPMorgan Chase is seeding the loan fund with a commitment of $3.65 million, alongside a $2 million commitment from Capital Impact Partners and a $1 million investment from the A. James & Alice B. Clark Foundation, for a total of $6.65 million. This effort builds on existing Entrepreneurs of Color Funds in Detroit, Chicago, San Francisco, and the South Bronx.
Seth Whetzel, Business Development Officer, DMV & NYC
Seth joined Capital Impact Partners in September 2019 to support Capital Impact’s lending activities in its core East Coast markets (D.C. and New York City metro regions). Prior to joining Capital Impact Partners, Seth spent more than three years with Building Hope, a CDFI focused on charter public school facility financing and real estate development nationwide. There, Seth served as Senior Underwriter and NYC Market Manager. Prior to that, Seth was the Director of New School Growth for Seton Education Partners’ Brilla Public Charter Schools. Seth holds undergraduate and graduate degrees from the University of Notre Dame as well as an MBA from George Mason University.
Did you know?
Seth is a five-time marathon finisher, although his mileage has dropped considerably since becoming a father of three!
Favorite things to see and do in the DMV?
Anything outdoors! I love hiking with my wife, kids, and dog – whether that be in Shenandoah National Park, the Billy Goat Trail along the Potomac River, or any of the number of trails in Fairfax County. As a former American History teacher, I never tire of D.C.’s museums and monuments; as a baseball fan, I’m always up for catching an O’s or Nats game; and as a native Marylander, the Eastern Shore and Ocean City hold a special place in my heart.
Kayla Baker, D.C. Initiatives Manager
Kayla Baker joined Capital Impact Partners in August 2019 and manages all programmatic initiatives within the Washington, D.C. area. Prior to joining Capital Impact Partners, Kayla spent eight years in the asset building industry. She started her career as a portfolio manager, supervising and trading more than $3 billion in client assets. Kayla then transitioned to Executive Strategist at Hope Enterprise Corporation, which is focused on providing financial products and services to economically distressed and traditionally marginalized communities. Following her time at Hope, Kayla worked at George Mason University, supporting skills-based career pathways for nontraditional college students. Kayla holds a Bachelor of Arts degree from Bowdoin College and a Master of Business Administration from Cornell University. In her spare time, Kayla enjoys reading, traveling, biking, and mentoring.
Did you know?
Kayla loves to play games and wants to challenge you to play Two Truths and a Lie. Here’s one:
Kayla used to work with the circus.
Kayla was a used car saleswoman.
Kayla has a polar bear miniatures collection.
Favorite things to see and do in the DMV?
Hanging out with her partner, Molly. Trying new (and old) restaurants and bars. Visiting libraries. Jumping in her ride and exploring all parts of the DMV. Going to concerts, festivals, plays, museums, and walking tours. (P.S. The answer to Kayla’s trivia question is…she never worked in the circus!)
Shattering Ceilings: Three Female Leaders Making a Difference for Communities
For many years, Jane Garcia found herself to be one of the only women in the boardroom. She not only fought against this bias but became a tireless champion for immigrant communities and access to health care for all. Since 1982, Capital Impact’s success has grown across a variety of sectors through partnerships with women like Jane who have sparked positive change in their communities.
Working as an Uber driver for the past eight years, Martin was hoping to make a better life for his family when he moved to the United States in 1991. As costs rose and pay decreased, he began to question whether he could continue on this path. That was when Martin and his fellow drivers began exploring the power of forming a cooperative and using their numbers to take control of their future.
We are honored to work with a broad range of partners, investors and government agencies that share similar missions and values in supporting Detroit’s revitalization. We invite you to learn more about many of these individuals and the great work they are doing through our video series “Partners in Detroit’s Revitalization.”
Building communities through equitable, affordable housing
Casamira: Detroit, MI | Worthington Woods: Washington, D.C. | Depot Community Apartments: Hayward, CA
It was a dark day in Washington, D.C. when Ronnie Jamison and his neighbors learned that their apartment building was sold, and they may be forced to leave. Working together, they turned to a local law called “TOPA” to help them remain in the neighborhood many had lived and raised kids in for decades. They just needed assistance from a buyer—and a lender.
Minority Business Leaders Award | Ellis Carr: His Passion is Investing in Community
2019
In 2019, Capital Impact’s CEO Ellis Carr was named to the Washington Business Journal’s prestigious Minority Business Leaders list. This profile piece looks at Ellis’ wide ranging career and passion for social and racial justice. “Capital Impact is the perfect nexus of using my core competency in finance and my passion for community. [It] brings those two worlds together in a really nice way,” notes Ellis in the article.
Bringing Community Development Lenders Back to their Civil Rights Roots
2019
Based on a panel discussion at the annual SOCAP conference, a gathering of 3000 social impact investors, this article looks back at the civil-rights roots of the CDFI industry. Based on interviews with leading CEOs, including Ellis Carr, the article explores the challenges and opportunities facing CDFIs as they work to stay true to those roots while maintaining financial viability.
The $500 Million Plan to Ease the Bay Area Housing Crisis
2019
The availability of affordable housing in the San Francisco Bay Area is a crisis for many residents across the region. To help reverse this trend, Capital Impact was asked to join the Partnership for The Bay’s Future, a $500 million initiative led by Chan Zuckerberg and other key funders. Our shared goal is to stabilize housing for 175,000 families within the next five years.
With funding from JPMorgan Chase and the A. James & Alice B. Clark Foundation, Capital Impact was tasked with launching the Entrepreneurs of Color Fund in Washington, D.C. Together with our lending partners, including the Washington Area Community Investment Fund, the Latino Economic Development Council and Harbor Bank of Maryland, we are helping minority entrepreneurs get access to low-cost loans to jumpstart their enterprises.
