Bank of America, in partnership with Enterprise Community Partners, has announced a $60 million investment in support of Equitable Path Forward, a five-year initiative aimed at advancing racial equity in housing.
To increase access to capital and career opportunities for BIPOC leaders developing affordable, multi-family, and supportive housing across the country, the investment will provide $30 million in loans and $30 million in equity financing. To that end, Bank of America will partner with Enterprise to provide Low Income Housing Tax Credit capital and debt financing to directly source, structure, and close deals with BIPOC developers seeking flexible capital.
"Together with Bank of America Community Development Banking, we will work to close racial disparities by investing in housing providers who are on the ground and engaged with their communities, yet lack financial and social capital," said Enterprise CEO Priscilla Almodovar. "To do so, we need to rebalance both power and profit in our industry. Today, less than 2 percent of real estate management firms are minority-owned, yet Black households comprise nearly 50 percent of federally assisted housing and make up 13 percent of the nation's population. Enterprise will leverage Bank of America's investment and our own capital, expertise, and unique end-to-end platform to do our part."
"This effort further accelerates the bank's work already under way to address racial equality and economic opportunity through direct actions, investments, and work to catalyze similar efforts across the private sector," said Maria Barry, community development banking national executive at Bank of America. "Our goal with this initiative is to play a key role in helping to drive new pipeline and financial capabilities of BIPOC developers."