Invest in affordable housing and promote the growth of Black homeownership

Homeownership is a key way to build wealth and equity, and safe, affordable housing is an important platform for financial stability. However, Black homeownership is at its lowest level since the 1960s. In addition, rental housing in many urban areas across the country is scarce and too expensive. Compounding this crisis is the near-absence of minority-owned real estate developers in the affordable housing industry.

What Citi will do:

  • Expand the U.S. Consumer Bank’s community lending team and its network of correspondent lenders to increase access to Citi’s mortgage products and services among minority borrowers in low- and moderate-income neighborhoods.
  • Provide $200 million of equity and preferential financing through Citi Community Capital to affordable and workforce housing projects by minority developers who either are the sole equity owners or are in a joint venture with meaningful equity participation. Some of this funding also will be invested in minority developers to build their capacity and allow them to compete for larger affordable housing projects.

What Citi Has Done So Far:

  • Committed $200 million of equity to the preservation of affordable and workforce housing projects that will be co-managed by five Black investment managers. The co-managers were identified by Citi Community Capital through a competitive RFP process and selected by an expert advisory committee.
  • Expanded the U.S. Consumer Bank’s community lending team and its network of correspondent lenders to support Black and Hispanic homeownership.
  • Citi continues to invest in its digital mortgage capabilities to better reach all communities, including underserved markets.
  • Citi is working toward expanding the eligibility criteria for its Community Lending products and programs, while leveraging its mortgage portfolio and capital to further enable homeownership. This includes Citi’s HomeRun program, which requires low down payments and removes mortgage insurance requirements for eligible borrowers with low-to moderate-incomes, and its Lender Paid Assistance program, which provides eligible homebuyers a credit of up to $5,000 to lower closing costs to make buying a home more affordable.
  • Citi is continuing to strengthen relationships with homeownership counseling groups, such as HomeFree-USA, and is participating as a member of the Office of the Comptroller of the Currency’s Project REACh Homeownership workstream to promote financial inclusion through greater access to credit and capital.
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