JPMorgan Chase has announced a $22 million investment in efforts to develop and preserve affordable housing in San Francisco and Oakland.
As part of a commitment to invest $75 million over five years in the Bay Area through its AdvancingCities initiative — a five-year, $500 million effort to drive inclusive growth and create greater economic opportunity nationwide — the bank will provide a combination of long-term, low-cost loans and grants to local organizations working to create affordable housing and protect local residents from displacement.
The investment includes a long-term, low-cost loan of $15 million to the Housing for Health Fund, which was launched in 2019 with $30 million in equity from Kaiser Permanente and is managed by Enterprise Community Investment. The fund will invest the majority of the capital in Oakland, with the aim of helping local affordable housing developers acquire housing units more quickly and keep them affordable. In addition, a long-term, low-cost loan of $6 million to the San Francisco Housing Accelerator Fund will be used by the community development financial institution to preserve the affordability of small-site properties in the City and County of San Francisco. And a $1 million philanthropic investment to the East Bay Asian Local Development Corporation will fund anti-displacement efforts and development in Oakland, including a project to test modular construction as a way to expedite projects and lower costs.
"Neighborhoods thrive when people have access to affordable housing. Our investment will help address the serious and ongoing challenges of displacement and affordability by applying proven approaches that are working in the Bay Area and we have helped develop in other cities," said Allen Fernandez Smith, head of the bank's West Region Philanthropy unit. "There is a long way to go to tackle these issues, but we're confident that with the right partners and solutions more people can benefit from the region's growth."
"The challenges of housing affordability are too big for any of us to solve on our own, and we're grateful to the San Francisco Housing Accelerator Fund for working with the city to support the construction and preservation of permanently affordable housing — especially for our most vulnerable residents," said San Francisco mayor London N. Breed. "This new investment from JPMorgan Chase will allow SFHAF to continue their important work of helping San Franciscans remain in their homes."