Dallas becomes the fourth region for Capital Impact Partners’ Equitable Development Initiative, which helps developers of color overcome systemic issues and lead affordable real estate projects
April 7, 2022 (Dallas, TX/Arlington, VA) – A new program will break down the barriers for real estate developers of color in the Dallas area, helping them be more involved in the region’s booming real estate market – and, in turn, to create more affordable housing.
The Equitable Development Initiative is led by Capital Impact Partners and has trained nearly 200 developers of color since 2018 in three major metropolitan areas. The Dallas region will become the fourth.
The first cohort in Dallas will provide approximately 20 emerging real estate developers of color with assistance to help them grow their businesses in an industry where they are severely underrepresented.
“Systemic barriers have prevented developers of color from accessing capital and achieving their potential in helping communities across the country,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance.
“There are so many talented developers of color who are ready to work with local neighborhoods to create housing solutions that uplift and support communities,” Carr said. “As we are doing in Detroit, the Washington metro area, and the San Francisco Bay Area, our EDI program will begin to build a more equitable real estate development ecosystem here in Dallas.”
The Dallas Equitable Development Initiative is supported by funding from JPMorgan Chase & Co. and Charles Schwab Bank.
“This is all about creating a more inclusive economy in Dallas,” said Michelle Thomas, executive director and head of philanthropy for JPMorgan Chase in Dallas/Fort Worth. “When we think about closing the gap in financing available to developers of color, this is a huge opportunity. There is an incredible need for new and affordable housing across the country, and we’re glad to partner with Capital Impact Partners to support our local developers of color who are working to address this issue in their communities.”
The lack of equitable representation in Dallas has affected both developers of color as well as communities of color.
Historically, the real estate industry has been dominated by larger national and global firms. Developers of color face significant barriers to entering the real estate space due to the lack of access to capital, equity and experience – the result of generations of structural racism and disinvestment.
Communities of color in Dallas are suffering, pushed farther out of the city due to rapidly rising home costs, a lack of housing inventory, and gentrification. Dallas currently has a 20,000-unit shortage of affordable homes.
Capital Impact Partners’ Equitable Development Initiative prepares emerging developers of color to pursue affordable housing projects and play a larger role in shaping Dallas’ development landscape.
They will receive broad-based training – in areas such as project budgeting, real estate finance, project and contractor management, legal services and community engagement – as well as local mentorship, network building, and pathways for them to access funding.
The initiative’s expansion into the Dallas area is also an expansion of Capital Impact’s existing investments across Texas. The Lone Star State was identified as an area where there’s an opportunity for spurring community and economic development investment based on identified needs in underestimated communities. To date, Capital Impact has invested more than $88 million in affordable housing, education and more.
JPMorgan Chase & Co. is providing $500,000 in grant funding for the Equitable Development Initiative’s expansion into Dallas. Capital Impact also received a grant from Charles Schwab Bank in support of the Dallas EDI expansion.
The Equitable Development Initiative is modeled after the successful program that Capital Impact launched in Detroit in 2018. It expanded into the Washington metropolitan area in 2019 and into the San Francisco Bay Area in 2021. Many of the participants have since gone on to create their own organizations, build local developments, and foster peer-to-peer networks.
EDI Applications: The EDI application window runs from April 7-May 6, 2022. Capital Impact will select participants based on the following guidelines. Developers should:
- Identify as racial or ethnic minorities
- Be actively working to further careers in real estate development with some real estate development experience
- Live in or near the primary metropolitan area of the program, and have a strong connection to the city/region in which they are working
- Demonstrate a commitment to their city/region’s revitalization
- Be interested in responding to requests for proposals for real estate development opportunities with or without a development partner in the next 1-2 years
About Capital Impact Partners:
Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We work to champion key issues of equity and social and economic justice by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
A nonprofit Community Development Financial Institution, Capital Impact has disbursed more than $2.5 billion since 1982. In 2020, Capital Impact launched a new enterprise with CDC Small Business Finance under one leadership team and national strategy to reinvent traditional and mainstream financial systems. Our goal is to ensure these systems equitably serve communities of color to drive community-led solutions that support economic mobility and wealth creation.
Our leadership in delivering financial and social impact has resulted in Capital Impact being rated by S&P Global and recognized by Aeris for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Austin, TX, Detroit, MI, New York, NY, and Oakland, CA.