Amid the Dallas area’s booming real estate market, we need to do better for developers of color as well as communities of color.
A new program aims to help both.
The Equitable Development Initiative (EDI), led by Capital Impact Partners, is breaking breaking down barriers for developers of color — and, in turn, creating more affordable housing. Developers will receive general training – in areas such as project budgeting, real estate financing, project and contractor management, legal departmentes and community engagement – as well as local mentorship, networking and pathways to funding.
EDI has already led to successes in three major US metropolitan areas, training nearly 200 color developers for 2018. The Dallas area will become the fourth.
Systemic barriers and racism
The real estate industry has long been dominated by large national and global companies. Color developers, meanwhile, face significant hurdles to entering the real estate space. They lack access to capital, equity and experience – the result of generations of structural racism and disinvestment.
At the same time, Dallas communities of color are suffering, pushed further out of town due to a rising house prices, a lack of housing inventory and gentrification. Dallas currently has a shortage of 20,000 affordable homes.
“Systemic barriers have prevented developers of color from realizing their potential in helping communities across the countrytry,” Ellis said
Carr, President and CEO of Capital Impact Partners and CDC Small Business Finance. “As we do in Detroit, the Washington metro area and the San Francisco Bay Area, our EDI program will begin to build more equitable real estate developmentelopment ecosystem here in Dallas.
The Equitable Development Initiative will prepare emerging developers of color to pursue affordable housing projects and play a greater role in shaping Dallas’ development landscape.
“It’s about creating a more inclusive economy in Dallas. When we think about closing the funding gap available to developers of color, that’s a huge opportunity. There is aThere is an incredible need for new, affordable housing across the country, and we are pleased to partner with Capital Impact Partners to support our local developers of color who are working to address this issue in their communities. – Michelle Thomas, executive director and head of philanthropy for JPMorgan Chase in Dallas/Fort Worth.
JPMorgan Chase & Co. provided $500,000 in grants for the expansion of the Equitable Development Initiative in Dallas. Capital Impact also received a grant from Charles Schwab Bank to support the expansion of Dallas EDI.
Capital Impact, a non-profit community development finance companyinstitution, has disbursed more than $2.5 billion since 1982. Capital Impact Partners and CDC Small Business Finance have partnered to reinvent traditional, traditional financial systems – ensuring that these systems serve communities of color to Drive community solutions that support economic mobility and wealth creation.