JPMorgan Chase's Record-Breaking Year in Affordable Housing
With the affordable housing crisis across the U.S., JPMorgan Chase spent 2021 deploying considerable resources to finance the construction, rehabilitation, and preservation of housing for low- and middle-income renters. Partner Insights spoke with Alice Carr, head of community development banking for JPMorgan Chase, about the firm's 2021 efforts in this area, and its plans for 2022.
Goldman Sachs Launches $75M Fund to Aid Black Affordable Housing Developers
Goldman Sachs Asset Management's Urban Investment Group has closed on a $75 million venture with the National Affordable Housing Trust to support Black affordable housing developers in completing new projects around the country. The initiative will establish the Black Developers Initiative Affordable Housing Fund, which will finance affordable housing projects across the country that are sponsored by Black developers with a heavy focus on Black women-led developments.
MBA in Affordable Housing Pledge
The Mortgage Bankers Association will ask industry leaders to increase subsidies for low-income housing - including supporting legislation to remove "unhelpful" zoning laws - and make a "concrete" pledge to finance more affordable rental properties, Flood pointed out that one of the MBA's top goals over the last three years had been to increase the supply of affordable single-family housing and rental housing in the country.
Michigan Gov. Whitmer to Propose Tripling Tax Credit for Low-Wage Workers
Gov. Gretchen Whitmer will ask lawmakers to triple Michigan's tax credit for low- and moderate-income workers, putting on average an extra $350 a year into their pockets. The proposal, which is to be unveiled in her annual State of the State address, would restore the state earned income tax credit to 20% of the federal credit. The refundable credit helps more than 730,000 families a year.
Embattled Homeless Housing Development Finally Breaks Ground in Boston, MA
An affordable housing project for the homeless in Boston's Jamaica Plain neighborhood has finally broken ground after seeing off legal challenges from a neighboring commercial landlord. The project's complex capital stack includes $7 million of funding from the state Department of Housing and Community Development, $50 million in Low Income Housing Tax Credit equity, and over $60 million in construction financing from Bank of America.
‘Unprecedented' Investment Fuels $27M Makeover at Richford Arms in Downtown Erie, PA
Cohen, the president of development for the apartment complex's Boston-based owner, Beacon Communities, will be joined by Erie Mayor Joe Schember, representatives from Erie Insurance, and other local officials to officially launch the $27 million renovation of downtown's Richford Arms apartment complex. Beacon Communities' plan for upgrades at Richford Arms — which provides affordable housing to low- and moderate-income downtown residents — are fueled by a $3.5 million low-interest loan from Erie Insurance and $2.45 million in loans from the city of Erie.
Oceanside, CA Directs $3.5M to Homeless Apartment Project
The city has committed $3.5 million in residual receipt loans toward the construction of a 60-unit housing project that will provide homes for homeless and extremely low-income residents at risk of homelessness. Once completed, Greenbrier Village Apartments will provide 59 units for residency while the remaining unit will be left for management.
Merchants Capital Closes Two Tax Credit Equity Funds Totaling $233.4M
Merchants Fund V represents the company's first national multi-investor fund with a total capital raise of $172.5 million from 16 institutional investors, including both banks and insurance companies. Merchants Fund V will infuse equity into 18 affordable housing properties that will create or preserve more than 1,958 affordable homes in 11 states. The investment in Merchants III will create 593 affordable homes in three states and revitalize historically significant housing properties in San Antonio and Kansas City.