Home | Newsletter | Advertise
loading...

A Loan Fund Launches for DC-Area Developers of Color

  • July 8th 2021

by Nena Perry-Brown

Rendering of Deanwood Station. Click to enlarge.

After a year in which conversations of racial equity took center stage, including within the real estate and development realms, a Community Development Financial Institution (CFDI) is looking to bridge the gap in the DC region.

Today, Capital Impact Partners announced a $20 million loan fund targeted toward non-white developers in the DC area. The Diversity in Development DMV Loan Fund (DiD-DMV) will create a lower barrier to entry for developers of color by providing more accessible lending terms.

With loans of $500,000-$5 million, the funds could provide acquisition financing to developers at up to 100% loan-to-value (LTV); Capital Impact's typical lending terms are up to 90% LTV, and most non-CFDI lending institutions have LTVs up to 75%. The fund would also eschew what would usually be a higher interest rate, expand credit access, and for a period of up to five years, would usually require monthly payments of interest only.

To be eligible, the proposed development would need to deliver at least five housing units, at least 20% of which would have to be affordable to households earning up to 80% of median family income (MFI). Applicants for a DiD loan may also be awarded a grant of up to $100,000 if at least 20% of prospective units would be affordable to households earning up to 60% of MFI.

“For too long, there has not been a level playing field for emerging developers of color trying to enter the real estate market," Diane Borradaile, Chief Lending Officer at Capital Impact Partners, said. "As a result, too many communities are not being appropriately represented when it comes to shaping the future of their city."

Two developments have already been selected as the first beneficiaries from the Fund: a mixed-use development in Deanwood that is currently crowdfunding equity, and an affordable development on Alabama Avenue SE that received zoning approval in 2019.

This article originally published at https://dc.urbanturf.com/articles/blog/loan-fund-launches-for-dc-area-developers-of-color/18469.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse