CCA was asked to evaluate the role of enterprise level debt to BIPOC-led affordable housing developers. The results were not only shocking, but hopefully will change the way banks and CDFIs evaluate developers of color.
WHAT ROLE IS RACIAL EQUITY PLAYING IN THE HOUSING SECTOR?
CCA investigated how financial products support growth in the affordable housing sector.
Our key-findings included:
There is a strong desire for enterprise level debt from BIPOC developers
There are negative feelings about the CDFI industry
Key differences exist between BIPOC developers and large, well-established developers
While we were able to recognize innovation within the industry, such as making steps towards supporting BIPOC developers, we also noticed areas of improvement such as how some developers don’t lead with racial equity - rather they discuss trying to solve for community development and affordability issues.
After identifying potential products and parameters, we outlined next steps which include convening BIPOC developers, offering developers exploration questions, an underwriting a sample deal based on findings.