Capital Impact Partners and JPMorgan Chase & Co. Launch $30 Million Detroit Neighborhoods Fund
Fund provides financing for projects that increase access to affordable housing and fresh, healthy foods
Detroit, MI/Arlington, VA (July 10, 2014) – Capital Impact Partners and JPMorgan Chase & Co. today announced the launch of the $30 million Detroit Neighborhoods Fund supporting the revitalization of Detroit. The Fund provides financing for multi-family residential properties, mixed-use real estate and grocery stores. The goal is to increase housing options for those with low and moderate incomes and help eliminate “food deserts” or other areas with limited access to fresh, healthy foods.
“Where many see Detroit as a risky investment, we see an opportunity to help re-build this city into the strong, vibrant community it once was,” said Terry Simonette, President and CEO, Capital Impact Partners. “Our ability to strategically deliver flexible, long-term loans along with social innovation programs provides Detroit’s underserved communities with affordable housing, access to fresh foods and health care, quality education and independent aging choices.”
The launch of this fund is part of JPMorgan Chase’s $100 million, five-year commitment announced in May, 2014 to accelerate Detroit’s economic recovery and help strengthen its neighborhoods. The Detroit Neighborhoods Fund is capitalized through a $20 million investment by JPMorgan Chase and $10 million by Capital Impact Partners, a leading non-profit community development lender.
“JPMorgan Chase is proud to be a leading national supporter of Capital Impact Partners and a strong advocate for Detroit’s economic future,” said Sean Birney, Vice President, Chase Community Development Banking. “With this fund, more housing will be built and other critical economic development projects will break ground. This is good for Detroit’s economy and job creation, and is another step in our joint commitment to help Detroit recover.”
Capital Impact Partners is complementing its nationwide community development strategy by specifically focusing on delivering financial and social impact in Detroit. Since 2010, Capital Impact Partners has deployed over $70 million in support of 14 projects, helping to attract more than four thousand people to Detroit’s inner core.
The Detroit Neighborhoods Fund will further expand on previous work with local organizations, foundations and partner institutions – including JPMorgan Chase – to deploy financing that is helping to revitalize Detroit.
Examples of these deals include:
• The abandoned Kirby Street Hebrew Day School was turned into 25 new apartment units in Midtown Detroit by two local borrowers, achieving dual aims of improving access to housing units that will increase population density in a high demand area and cleaning up and brightening an unused property to eliminate blight.
• Advantage Health Center moved into a new facility located on Detroit’s famous 8 Mile Road, making it easier to find and significantly increasing access to health care for their 20,600 patients.
• The Henry Ford Academy converted a formerly vacant building in historic Detroit into a charter elementary school educating 380 students from kindergarten through 5th grade.
• In partnership with The Kresge Foundation, the $30 million Woodward Corridor Investment Fund is being developed to invest in transformative real estate projects that advance redevelopment of Detroit’s Woodward Corridor. In addition to strategic loan opportunities, Capital Impact Partners also deploys social innovation programs in Detroit that rethink how traditional systems operate, creating benefits for those being served as well as the community as a whole.
This includes:
• Accelerating economic opportunity by working in collaboration with Living Cities and cross-sector partners in Detroit to run the Detroit Corridor Initiative. Capital Impact Partners provides key “backbone” support to this collective impact initiative which aims to accelerate economic opportunity in Detroit’s mixed use and mixed income commercial corridors.
• Independent aging innovation that provides control and dignity for aging elders through programs that serve as alternatives to traditional nursing homes. This includes THE GREEN HOUSE® Project in development at the Rivertown Neighborhood to provide care in a home-like setting, and a chapter of the Village to Village Network which is part of the Community Connections of Greater Midtown system that allows older individuals to remain in their homes with the support they need. In addition to its investment in the Detroit Neighborhoods Fund, JPMorgan Chase has also made a $5 million philanthropic grant to provide Capital Impact Partners with operational and programmatic support.
“I am excited about working in partnership with a company like JPMorgan Chase that has such incredible vision. With smart investment and support, Detroit will ultimately serve as the premier example that all people and communities can reach their highest potential at every stage of life,” said Simonette.
Detroit Neighborhood Fund Overview: Eligible Borrowers include multifamily rental housing, mixed use facility and healthy foods retail owners and developers with projects located within the city of Detroit. Conforming Loans are loans made to eligible borrowers to finance construction and/or permanent loans. Preference is given to projects that make at least 20 percent of units available to people with low and moderate incomes. Food projects will be located in areas shown to have low access to fresh, healthy foods.
In addition, preference is given to projects that most meet Capital Impact Partners’ community impact standards.
Interested borrowers should contact Ian Wiesner at 313-230-1116 or iwiesner@capitalimpact.org.
About Capital Impact Partners:
Capital Impact Partners is a leader in financial and social innovation for communities. A nonprofit organization and certified Community Development Financial Institution, we bring our roots in cooperative development, diverse network of partners and problem solving know-how to connect communities to capital and capabilities that together create social change. Capital Impact Partners has disbursed nearly $2 billion nationwide over the last 30 years across the healthcare, healthy foods, education, affordable housing and independent aging sectors to help build strong, vibrant communities. Headquartered in Arlington, VA, Capital Impact Partners operates nationally with local offices in Detroit, MI and Oakland, CA. Read more at www.capitalimpact.org.
