Investing in Affordable Housing and Promoting the Growth of Black Homeownership
January 12, 2022
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.