A Loan Fund Launches for DC-Area Developers of Color
✉️ Want to forward this article? Click here.
After a year in which conversations of racial equity took center stage, including within the real estate and development realms, a Community Development Financial Institution (CFDI) is looking to bridge the gap in the DC region.
Today, Capital Impact Partners announced a $20 million loan fund targeted toward non-white developers in the DC area. The Diversity in Development DMV Loan Fund (DiD-DMV) will create a lower barrier to entry for developers of color by providing more accessible lending terms.
story continues below
loading...story continues above
With loans of $500,000-$5 million, the funds could provide acquisition financing to developers at up to 100% loan-to-value (LTV); Capital Impact's typical lending terms are up to 90% LTV, and most non-CFDI lending institutions have LTVs up to 75%. The fund would also eschew what would usually be a higher interest rate, expand credit access, and for a period of up to five years, would usually require monthly payments of interest only.
To be eligible, the proposed development would need to deliver at least five housing units, at least 20% of which would have to be affordable to households earning up to 80% of median family income (MFI). Applicants for a DiD loan may also be awarded a grant of up to $100,000 if at least 20% of prospective units would be affordable to households earning up to 60% of MFI.
“For too long, there has not been a level playing field for emerging developers of color trying to enter the real estate market," Diane Borradaile, Chief Lending Officer at Capital Impact Partners, said. "As a result, too many communities are not being appropriately represented when it comes to shaping the future of their city."
Two developments have already been selected as the first beneficiaries from the Fund: a mixed-use development in Deanwood that is currently crowdfunding equity, and an affordable development on Alabama Avenue SE that received zoning approval in 2019.
See other articles related to: affordable housing, affordable housing dc, capital impact partners, development, equitable development, racial equity
This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/loan-fund-launches-for-dc-area-developers-of-color/18469.
Most Popular... This Week • Last 30 Days • Ever
The new development, designed by KGD Architecture, would take the place of a two-stor... read »
A plan to add another new residential building to the Friendship Heights pipeline is ... read »
Forest Hills Connection is reporting that the owner of the Days Inn along Connecticut... read »
This week’s Best New Listings includes a bi-level condo north of Adams Morgan's mai... read »
On Monday, the listing price for the 30,000 square foot home that was originally buil... read »
- Jair Lynch Pitches 110-Unit Affordable Development Along Columbia Pike
- Donohoe Files PUD For 127-Unit Development in Friendship Heights
- A Plan For More Development In Van Ness?
- Best New Listings: Windows Galore on Biltmore; One Up, One Down on Swann
- The Price For Dan Snyder's Former Potomac Home Drops By $5 Million
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro