Redesigning Access by Centering Equity (RACE Initiative)
Through our work to advance supportive housing in communities across the country, CSH has witnessed the significant overrepresentation of Black, Indigenous and People of Color (BIPOC) individuals within the homeless system and institutional settings. Yet, there remains a substantial underrepresentation of BIPOC developers in the affordable and supportive housing industries. To bridge this gap and expand BIPOC developers’ access to capital and resources, we have launched the “Redesigning Access by Centering Equity” or RACE Initiative, a program of our Community Investment work.
The RACE Initiative is the centerpiece of our efforts to elevate and address the systemic inequities and barriers that have stagnated the success of BIPOC housing developers.
Today, just 2% of the real estate industry includes companies that are Black-led.
Recognizing these realities and in line with our 2023-2027 Strategic Plan, which calls for a fundamental shift toward equity as a framework, CSH is seeking to increasing BIPOC developers’ access to low-barrier capital, delivering no-cost training and technical assistance, and pursuing policy and systems level reforms.
CSH designed the RACE Initiative to holistically address systemic racism in the supportive housing industry. Our goals are to:
Increase the number of loans and investments provided by CSH to BIPOC-led housing developers.
Increase the proportion of CSH’s overall lending investment offered to BIPOC-led housing developers.
Make resources and tools available to BIPOC-led developers using CSH’s signature Incubator Academy and Supportive Housing Institute, personalized trainings, and one-on-one technical assistance.
Advance policies that reduce barriers for BIPOC-led developers to access critical financing resources needed to fund, develop, maintain, and operate quality supportive housing in the long term.
I cannot afford to be a developer on my own because I don’t have the working capital or access to financing
Female-Owned Minority Business Enterprise Owner
Through this initiative, we offer:
Financing
- Project Initiation Loans: CSH offers very early stage, flexible, interest-free loans that assist developers in kick-starting projects.
- Predevelopment and Acquisition Loans: CSH offers early-stage high Loan-to-Value and unsecured loans for supportive housing property acquisition and development.
Technical Assistance
Through our Supportive Housing Institute, Incubator Academy programs, BIPOC developers are eligible for intensive technical assistance.
- Development Consultation: CSH offers developers access to development consultants. Development consultants provide support with low-income housing tax credit applications (planning and preparation) as well as project-level consulting for state or local tax credit funding rounds.
- On-going Technical Support: CSH offers technical assistance to BIPOC developers throughout their project planning and development until tenants move in.
Connecting Developers to Government Partners
The issues facing BIPOC developers are systemic and cannot be solved by CSH alone. We acknowledge that in addition to CSH’s efforts, we also need government partners to join us in correcting years of injustices and deliberate actions that have set BIPOC communities back. As part of this initiative, CSH is advocating local and state governments to prioritize financing awards for BIPOC developers.
I would love to do my own projects, but I haven’t had the financial capacity or banking relationships to do so.
Female-Owned Minority Business Enterprise Owner
Resources for BIPOC Developers
The CSH Supportive Housing Development and Decision Guide (the Guide) is designed to assist affordable and supportive housing development teams in navigating the complex process of producing supportive housing projects. It includes resources that address barriers to development, which may be experienced by emerging developers or by housing developers who identify as BIPOC.
Our RACE Initiative Investors
We are grateful for the partnership and support of individuals and organizations across the country who believe in our mission of advancing racial equity by scaling supportive housing.
Opportunity Finance Network
Bank of America
Hilton Foundation
Deutsche Bank
Morgan Stanley
Annie E Casey Foundation
Amalgamated Bank
HSBC Bank
Robert Wood Johnson Foundation
US Bank Foundation
California Community Foundation
Kaiser Permanente
State of California