AUGUST 3, 2023 (Arlington, VA/San Diego,CA) – The Momentus Capital branded family of organizations announced today that Aeris — a leading expert in the financial and impact performance of community development financial institutions (CDFIs) and other private impact loan funds — has recognized it with strong ratings in the areas of impact management, financial strength and performance, and contribution to public policy.
New program is being launched to increase diversity in Cleveland’s real estate industry and is expected to, in turn, uplift communities of color July 19, 2023 (Cleveland) –– Entrepreneurs of color trying to develop real estate in Cleveland now have access to an innovative new program aimed at eliminating barriers to success and providing them with the tools they need to shape the future of the city’s communities.
The Cleveland EDI program is designed to seed, mentor, support and create more opportunities for emerging real estate developers of color, particularly as they develop projects in the very communities they are from.
The initiative is a joint effort by Cleveland Development Advisors (CDA), which provides expertise and financing to real estate projects that advance economic and community development; Cleveland Neighborhood Progress, a local community development intermediary that invests in community revitalization work in Greater Cleveland; and Capital Impact Partners, a mission-driven nonprofit lender based in the Washington, D.C., metropolitan area.
“Around the country, there is a profound imbalance in the real estate industry with respect to diversity, and we’re taking measures to correct that inequity in Greater Cleveland,” said Yvette Ittu, president and CEO of Cleveland Development Advisors. A recent study revealed Black and Hispanic real estate developers make up less than one percent of the industry.
“This program is designed to ensure more minority developers have a seat at the table,” she continued. “This will not only help ensure that developers reflect Cleveland’s population, but we believe it will better address the needs and advance the economic growth of the underrepresented communities where they live, are from, and that they better understand.”
Capital Impact Partners has helped create similar, successful programs in other communities. Since 2018, more than 200 developers of color have completed the EDI program in Dallas; Detroit; the San Francisco Bay Area; and the Washington metropolitan area. A similar program offered by Capital Impact recently launched in Austin, Texas.
“Over the past five years, the EDI program has sought to increase diversity, equity and inclusion for real estate developers of color in an industry where they are historically underrepresented,” said Ellis Carr, president and CEO of Capital Impact Partners, which is part of the Momentus Capital branded family of companies.
“We’ve heard from participants around the country about how important it’s been for them to receive the financial, knowledge, and social capital that they need to succeed,” Carr added. “We’re proud to be able to work with Cleveland Development Advisors and other Cleveland organizations to bring the EDI program to Cleveland. We want to help close the racial wealth gap for these developers and create more opportunities for the communities they serve.”
A priority objective for multiple civic partners
The EDI program is a part of a broader initiative, the Equitable Development Ecosystem Collaborative (EDEC), to support the success of minority developers with other community partners, including Cuyahoga County, the City of Cleveland, the Land Bank, LISC, Enterprise Community Partners, and Cleveland Neighborhood Progress.
“This is not an easy industry to break into and is a long overdue investment to help more minorities successfully navigate the real estate industry from project conception to completion,” said Mayor Justin Bibb. “Removing constraints on these developers is an important step toward addressing injustices that have made it harder for people of color to become players in this industry and to have an impact on their communities.”
Dione Alexander, President of Village Capital Corporation (a subsidiary of Cleveland Neighborhood Progress), said: “For decades, developers of color in Cleveland have not had equitable opportunities to participate and thrive in the real estate market. Part of the challenge has been the lack of access to capital and training, but a larger issue has been the lack of a coordinated network of service providers and mentors to support developers. The EDI program will partner high potential developers with the whole package of high-quality talent and resources Cleveland offers.”
Gina Merritt, a Black developer who will serve as a mentor to initiative participants, advocates for racial equity in part by developing more affordable housing in the Cleveland area to address the chronic shortage, with a focus on economic empowerment. She is principal of Northern Real Estate Urban Ventures, a social impact real estate development company that is working to transform the Hough neighborhood with the redevelopment of a vacant 116-unit Hough housing tower that will serve households earning 60% of the area median income, or $33,060 to $42,480 a year. She is also redeveloping MLK Plaza, which includes constructing 149 multi-family units, along with 7,500 sq. ft of commercial space and 6,700 sq. ft of live/work space. Future phases of the project will include townhomes and multi-family housing, along with 50 units of family housing on a vacant lot across the street.
“I look forward to serving as a mentor for the Cleveland EDI program and expanding access and social capital to increase diversity in Cleveland’s real estate industry and supporting a new generation of minority developers,” said Merritt.
In addition to Merritt, others who have volunteered to serve as mentors and advisors include Mitchell Schneider (First Interstate Development), Tom Charek (Welty Development), Arne Goldman (Marous Brothers Construction), Michael Panzica (M. Panzica Development), Andrew Iarussi (RHM Real Estate Group) and Scott Skinner (NRP Group), just to name a few.
This list will evolve as other developers are being recruited to be mentors and advisors in the program.
Council President Blaine Griffin said the program aligns with the priorities the City Council outlined in its recent Community Benefits Ordinance. “Council believes the growth and development of real estate developers of color is a win for Cleveland,” he said. “It creates more opportunities to grow the next generation of developers and assists in creating more family-sustaining jobs for Clevelanders of all backgrounds.”
What to Know About the Cleveland EDI program
The eight-month program will provide developers with training, technical assistance, mentorship, networking, and pathways to financing. Industry leaders will provide insights on the local review process, preparing financial applications and leveraging business partnerships with community members.
One of the many barriers to success is access to capital. There is a stark racial wealth gap when compared to white developers; developers of color are more likely to be denied for loans or to not receive the full amount they are seeking. They also historically have less access to friends and family who are able to provide investment funding. And while Cleveland has creative lending programs, those programs require attracting private equity, which can be a major issue for developers of color. Helping provide pathways to financing will be a key element of the curriculum.
The program will pair experienced developers with emerging developers to help launch their projects.
It is anticipated that 12 to 15 entrepreneurs will be selected for the program. Successful candidates will be selected based on the following criteria:
Demonstrate experience as a small-scale developer (with either for-profit or nonprofit organizations) who is seeking to further their experience and/or growing their real estate business. As this is not an introductory program, candidates are expected to have some direct real estate development experience.
Live in or have a strong connection to Cleveland.
Commit to attend training on Wednesdays during the months of October through May for up to four hours per week. There will be 16 sessions, held twice a month in a combination of in-person and virtual meetings; tasks; a showcase event for pitching real development projects; and ongoing meetings with a mentor/advisor.
Demonstrate interest in responding to Requests for Proposals (RFPs) for real estate development opportunities in Cleveland, with or without a development partner, within six months of completion of the program.
A webinar for applicants will be held on Wednesday, July 26, from noon to 1:30 p.m. Sign up for the webinar here: Registration Link.
Finalists will be selected in September and the program will begin in October.
Twelve grantees were awarded funds to support a variety of cold storage-related needs, from refrigerated vans to refrigerators in corner stores.
July 19, 2023 (Washington, D.C.) – Capital Impact Partners is pleased to announce the grantees for the inaugural round of Keeping it Cool, a new grant initiative conceived and supported by The Morningstar Foundation. Keeping it Cool is designed to close the cold storage gap in the region, furthering access to healthy, nutritious foods across Washington, D.C. and the surrounding jurisdictions including Arlington, VA; Alexandria, VA, Fairfax County, VA; Montgomery County, MD; and Prince George’s County, MD. With so many small food businesses and nonprofit organizations working with and distributing perishable foods, cold storage is a critical component of offering, serving and distributing healthy food in the region.
July 10, 2023 (Arlington, VA/San Diego, CA) – Capital Impact Partners and CDC Small Business Finance have announced that Gary Cunningham, the former president and CEO of Prosperity Now, has been named the new chair of the boards of directors for the two mission-driven lenders, effective June 13, 2023.
Momentus Securities aims to deliver more than $3 billion in community-based investments by 2026
May 22, 2023 (New York, NY) – Momentus Securities has launched with the goal of driving institutional capital to America’s small businesses and nonprofits — and positioning “social impact” as a fully investable asset class for institutional investors.
Momentus Securities — a registered broker-dealer and FINRA member — seeks to disrupt the mission-driven investing space by addressing the current scale and liquidity limitations in the sector that inhibit the deployment of institutional capital. Momentus Securities intends to facilitate the deployment of $3 billion of social capital by 2026.
“This is an innovative approach. We are transforming how institutional investment capital is unlocked and channeled into high-need community investments,” said Momentus Securities President and CEO Alicia Reyes, who brings 27 years of experience in investment banking and private equity to Momentus Securities. “The lending market in the impact sector is decentralized and highly dispersed. This is a challenge for institutional investors that want to fully incorporate the ‘S of ESG’ into their mainstream strategies because of the lack of liquidity.
“We see this as an opportunity to launch ‘social Collateralized Loan Obligations’ and, initially, intend to open warehousing lines to aggregate portfolios of loans across five key segments: affordable housing, healthcare, education, small businesses and food. Once ramped up, the portfolios will be securitized, and we will distribute the bonds as a takeout. These portfolios will offer institutional investors the opportunity to support communities and participate and invest at a scale not previously available. Lenders will achieve better terms while providing investors an improved risk return profile,” Ms. Reyes added.
Capital Impact partners with InspereX LLC to distribute the Notes through its Impact Investment Platform to a nationwide network of broker-dealers, institutions, and financial advisors.
Individual and institutional investors can purchase Capital Impact Investment Notes for as little as $1,000. Capital Impact Investment Notes provide investors with a unique opportunity to align financial goals with personal principles through values-based investing.
“Capital Impact Investment Notes help create a unique opportunity for funders and investors to work through Capital Impact to support communities,” said Natalie Gunn, Chief Financial Officer of Capital Impact Partners and CDC Small Business Finance. Capital Impact Partners and CDC Small Business Finance are two of the Momentus Capital branded family of organizations, which also includes Ventures Lending Technologies, among other organizations. “Investors continue to recognize that Capital Impact Partners delivers a strong financial performance while bringing a continuum of capital to disinvested communities, helping these communities have the chance they deserve to thrive.”
The Catalyzing Finance for Racial Equity Report from mission-driven lenders Nonprofit Finance Fund and Capital Impact Partners surfaces community and peer recommendations.
APRIL 26, 2023 (New York, NY/Arlington, VA) – Community Development Financial Institutions (CDFIs) were born out of the Civil Rights Movement to ensure that nonprofits and businesses — particularly those in communities of color and communities with lower incomes — have equitable access to loans. However, much work still needs to be done.
A new report examines ways that CDFIs, and other financial institutions, can further change their business practices to embed racial equity in their lending and investment practices.
The Catalyzing Finance for Racial Equity Report (PDF) is the result of a partnership between Nonprofit Finance Fund (NFF) and Capital Impact Partners, two mission-driven CDFIs. The recommendations are derived from interviews with 15 organizations in five states, including CDFI peers and community organizations. Those in-depth conversations covered subjects such as their experiences with community development and lending, as well as how CDFI practices and services could be improved to better support community health.
“Advancing racial equity requires that we listen to communities of color and constantly interrogate and improve our practices and policies,” said Aisha Benson, CEO of NFF. “By sharing our experiences of what’s working and what isn’t among peer CDFIs, we can speed progress toward shared equity goals.”
Capital Impact Partners and HousingWorks Austin are now accepting applications for their Austin Small Developer Training program, expanding on a nationwide initiative that has already supported more than 200 developers.
April 24, 2023 (Austin, TX) – A new program will provide small-scale real estate developers from underrepresented communities in Austin with the tools they need to grow their businesses — helping them to be more involved in the region’s booming real estate market and, in turn, to create more affordable housing.
Applications are being accepted from April 24-May 19, 2023, for the Austin Small Developer Training program, which seeks to assist developers who have been historically excluded or overlooked.
The free, four-month program will provide developers with training, technical assistance, mentorship, networking, and potential pathways for financing.
The Austin region continues to grow, but that growth has also led to rising housing costs, pushed longtime residents out of the city, and contributed to low rates of homeownership and business ownership in communities of color. Helping small-scale Austin real estate developers can also help close wealth gaps while bringing more affordable housing and investment into historically underserved communities.
These funds will be used to provide loans, grants, and development services to developers of color who build rental housing in disinvested communities across the United States
APRIL 14, 2023 (Arlington, VA) – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has announced that Capital Impact Partners was awarded a $4.95 million grant through the CDFI Equitable Recovery Program.
The CDFI Equitable Recovery Program will strengthen the ability of CDFIs to ensure that low- and moderate-income communities continue to recover from the COVID-19 pandemic and invest in long-term prosperity. The CDFI Fund awarded $1.73 billion to 603 organizations nationwide.
“This award will help us address the decreased access to affordable housing for low-income families, a problem that has only been exacerbated by the COVID-19 pandemic,” said Mindy Christensen, senior vice president of community development real estate for Capital Impact Partners. “With these funds, we can expand our strategy of creating more affordable housing while also building up the capacity of local real estate developers of color.”
In its 2023 rankings, The NonProfit Times also honored CDC Small Business Finance as the #17 medium-sized nonprofit and #43 overall
April 11, 2023 (Arlington, VA / San Diego, CA) – With a mission that inspires employees — and a management team that invests in them — two organizations from the Momentus Capital branded family of organizations have been named among the best medium-sized nonprofits in the United States, according to The NonProfit Times, the leading publication for nonprofit managers.
Capital Impact Partners is ranked the #1 nonprofit in the medium-sized category, which includes organizations with 50-249 employees. And the organization is also among the best nonprofits of any size, ranked #2 overall.
CDC Small Business Finance is also honored in this year’s rankings as the #17 medium-sized nonprofit and #43 overall.
Capital Impact Partners and CDC Small Business Finance are both part of the Momentus Capital branded family of organizations, which also includes Ventures Lending Technologies, among other organizations.
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