The history of systemic racism in our nation’s housing means many providers of color struggle to access sufficient capital for their projects. It's impossible to build – or grow – when equity and debt are out of reach.
In 2020, we launched Equitable Path Forward, a five-year, $3.5 billion nationwide initiative designed to help dismantle the legacy of racism in housing. Equitable Path Forward is an innovative, comprehensive program that considers not only the types of homes that get built, but where they’re built, who builds them and the wealth they generate.
In addition to providing needed capital in communities of color, Equitable Path Forward provides advisory services and real estate mentorship to historically marginalized builders and developers.
First-of-its-kind credit enhancement
To heighten the impact of the Equitable Path Forward Growth Fund, we created a first-of-its-kind Standby Guaranty Facility. This credit enhancement tool creates access to new sources of investments for developers whose balance sheets don't meet traditional investor requirements. It also allows these developers to avoid third-party co-guarantor requirements. That way, we level the playing field for developers of color so they can hold on to more of their profits and growth potential.
Over the next five years, our $350 million Growth Fund is anticipated to leverage at least $3.5 billion in new capital investment for marginalized companies, projects and communities. But we plan to go beyond direct support. Through Equitable Path Forward, we aim to move the larger needle on how “risk” is perceived in real estate underwriting. In advocating for more equitable standards within the industry, we will generate more equitable outcomes in more communities.
First Year Achievements
We surpassed our first-year goals for Equitable Path Forward, but it was just the beginning. We will continue breaking boundaries, blazing an even wider trail so that more people associated with the housing marketplace can have an equitable path forward.