JPMorgan Chase pledges $12 million to minority households
JPMorgan Chase announced that five organizations will receive philanthropic capital as part of the company’s five-year, $400 million commitment to improve housing affordability and stability for underserved households, particularly in lower-income communities. black, Hispanic and Latino communities.
JPMorgan Chase commitments will support organizations working to develop innovative housing models such as single-family housing production to increase the supply of affordable housing and home ownership. These commitments are part of JPMorgan Chase’s company-wide efforts to close the housing affordability gap using the company’s business, data, policy and philanthropic resources. The announcement aligns with efforts by Chase’s Home Lending business to help drive change in the mortgage industry through:
- Hire and expand its presence in underserved communities;
- Improve products and services;
- Promote increased diversity in the appraisal industry;
- Participate in policy reform
Additionally, JPMorgan Chase PoliticsCenter offers data-driven policy solutions to improve pandemic-weakened homeownership opportunities.
“Owning a home is a key factor in providing family stability and creating generational wealth, but out of reach for far too many people, especially black, Latino and Hispanic households,” said Abigail Suarez, neighborhood development manager. at JPMorgan Chase. “Today’s announcement will help overcome current barriers to homeownership and allow more families to access wealth-building opportunities.”
Due to unequal access to home ownership, the ownership disparity between white households and black, Hispanic, and Latino households continues to grow. Long-term financial instability, a shortfall in the supply of affordable housing for purchase, and rising house prices continue to reduce the number of Black, Hispanic, and Latino individuals and families who become homeowners, many these issues being exacerbated by the COVID-19 pandemic and related economic downturn.
These challenges are addressed by organizations receiving philanthropic commitments, including:
Atlanta Neighborhood Development Partnership (ANDP): With the three-year, $2.5 million commitment from JPMorgan Chase, ANDP will work to advance affordable housing and racial equity by:
- Develop its single-family housing production model,
- Develop its Community Development Financial Institution (CDFI) lending platform,
- Prioritize risk-sharing business partnerships with small local Black-owned real estate companies.
Community Support Center: With a three-year, $2.5 million commitment from JPMorgan Chase, the Center for Community Self-Help will work in Charlotte, Chicago, Milwaukee and other markets to increase homeownership by:
- Create a specialized, 100% LTV mortgage product to address the challenges of savings and debt to income,
- Launched an emergency savings account program that functions as a mortgage reserve account.
Network of rooted solutions: With the three-year, $2 million commitment from JPMorgan Chase, Grounded Solutions Network will work in Atlanta, Chicago, Houston and Minneapolis to advance affordable housing by:
- Increase the technical skills, production rates and capacity of community land trusts and other non-profit housing programs through shared action support programs,
- Creating a shared equity mortgage conversion approach through the BIPOC Homeownership Stabilization Program to help struggling homeowners stay in their homes, preserve already accumulated equity, and share some of the future appreciation.
The Housing Partnership Network: With the three-year, $3 million commitment from JPMorgan Chase, the Housing Partnership Network will work in cities across the United States to increase supply and access to affordable single-family homes by:
- Launch the Building Neighborhoods fund to provide flexible equity-like capital to develop, acquire and renovate new and existing single-family homes,
- Increase the volume and speed of mortgage lending to Black, Latino and Hispanic borrowers through a new Fair Homeownership Collaboration, made up of CDFIs committed to expanding homeownership.
Parity houses: With the three-year, $2 million commitment from JPMorgan Chase, Parity Homes will expand its approach to driving initial demand for homeownership opportunities in West Baltimore neighborhoods experiencing hyper vacancy by:
- Create pathways for existing residents and other social collectives to buy homes together, block by block, as a way to build community and build wealth.
“Innovation and scale are desperately needed to close the growing race-based homeownership gap and resulting wealth disparity,” said John O’Callaghan, President and CEO. of the Atlanta Neighborhood Development Partnership. “This support from JPMorgan Chase will allow us to grow our model, deploy more capital through small, undercapitalized Black-owned real estate companies, and develop homes that provide affordable housing and generate essential wealth for families. .”
JPMorgan Chase will work with the Urban Institute to test and scale these innovations, including measuring impact and sharing insights with the housing industry to advance housing stability and affordability for households. blacks, Hispanics and Latinos.
“I’m proud of Urban’s work with JPMorgan Chase to identify, evaluate and develop these solutions,” said Sarah Rosen Wartell, president of the Urban Institute. “I look forward to supporting grantees as they advance innovations to address the country’s housing affordability crisis and overcome barriers to homeownership that have stifled opportunities for households of color.”
Advancing data-driven policy solutions
Last year the JPMorgan Chase PoliticsThe Center has published evidence-based policy recommendations to increase equitable access to stable, affordable and sustainable property. These recommendations reflect the impact of the work done by organizations receiving philanthropic commitments. For example, the company supports industry policies and practices that:
- Leverage COVID-19 protections to effectively support landlords struggling with a loss of income;
- Increase funding to increase the supply of affordable housing for purchase;
- Advance reforms to increase mortgage market liquidity and improve access to affordable sustainable mortgages that better serve Black, Hispanic, Latino, and low-income borrowers;
- Advancing fair housing and mitigating bias and discrimination in the home evaluation process;
- Create potential pilot projects, including those that evaluate the establishment of mortgage reserve accounts.
These commitments are part of the company’s $30 billion commitment to advancing racial equity and fostering an inclusive economic recovery that was announced in October 2020. Learn more about how JPMorgan Chase is working to close the racial wealth gap, click here.