Connecting Real Estate Developers of Color To Capital
In an effort to support a more diverse pool of local real estate developers, Capital Impact Partners has launched a loan fund to support developers of color develop projects in and with their local communities.
The Diversity in Development Loan Fund expands Capital Impact’s long-time commitment to equitable development and inclusive growth by deploying low-cost and flexible financing to support acquisition and predevelopment expenses.
It is our goal to clear pathways to success for developers of color who face barriers to entering the real estate industry due to a lack of capital, equity, and experience as a result of structural racism and disinvestment over the course of generations. In doing so, we can help ensure that developers are more representative of and responsive to residents of color, who make up roughly half of the region’s population.
Key features of the Diversity in Development Loan Fund:
- Flexible Loan Range from $500K to $5 million
- Below market interest rates (exact rates still TBD)
- Loan to Value of 125% including acquisition and predevelopment costs
- Low equity requirement set at 5% minimum
- Variety of Uses ranging from predevelopment to acquisition
*Note: Final terms and ranges will be based on a number of factors including project size and location.
Advantages of borrowing through Capital Impact Partners:
- Since 1982, we have partnered with communities to invest more than $2.5 billion into local projects including multifamily affordable and workforce housing, health care facilities, healthy food businesses, and education facilities.
- Through our Equitable Development Initiative, we have provided training and mentorship to over 100 developers of color across the country, providing us with insight into how to best support their community-focused projects.
- With offices in key metropolitan areas across the country, we are familiar with local market conditions and deepened our commitment to fostering an environment to advance community-led solutions.
- As a mission-driven organization, we are committed to supporting projects that create social and economic justice.
California
- Bay Area
- Los Angeles
- San Diego
Texas
- Austin
- Dallas
- Houston
- San Antonio
Michigan and the Great Lakes
- Detroit
- Cleveland
Washington Metro ( including parts of Maryland and Virginia)
New York
- NYC Metro
- Northern NJ (focused around Newark)
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| 4726 Sheriff Rd NE | Washington, D.C. | Alabama Ave Apartments | Washington, D.C. |
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Questions About the Fund?
As a developer of color focused on nontraditional projects that create unique opportunities to expand affordable housing, it can be a challenge to secure capital. Capital Impact's Diversity in Development DMV Loan Fund fills a necessary gap in the marketplace by focusing on mission-based projects that support community needs while also ensuring they can be built in a cost-effective manner.
Principal - Durrani Development Corporation
Capital Impact has been very proactive and diligent about their organization’s racial equity journey and what that means for the products they are developing and the people they are serving. They are mission-aligned with us, and that is another reason I encourage other Black developers to work with Capital Impact.
Medici Road
STORIES OF IMPACT
Equitable Development Initiative
In an effort to better ensure that real estate developers of color in Detroit are able to participate in the city’s revitalization in a way that reflects the city’s diversity, we launched the Equitable Development Initiative.
A Bold Gamble To Build Community Wealth and Assets
Oakland’s Unity Council wanted to make a bold gamble to create a transit-oriented development that co-located housing, commercial development, and community space in a long disinvested community. We partnered with local leaders and existing borrowers to support this ambitious effort to expand access and opportunity through employment and transportation.
Financing Black Developers That Support Neighborhoods
Thomas Houston and Talayah Jackson had a vision to transform a vacant lot in Washington, D.C.’s Ward 7 into affordable housing and space for small businesses. We were able to provide a nearly $1 million loan to jumpstart the project and bring important services to their D.C. neighborhood.
