The JPMorgan Chase Foundation (NYSE: JPM) announced a $6 million grant to NALCAB—National Association for Latino Community Asset Builders—for a multi-market pilot project focused on job creation, affordable housing, and small business lending in predominantly Latino communities. The three-year initiative is being led by NALCAB, as the lead applicant and convener for the project. Partners in the initiative include three nonprofit lenders working in five states:
* Affordable Homes of South Texas, Inc. (AHSTI)—Texas
* Chicanos Por La Causa (CPLC)—Arizona, New Mexico and Nevada
* Community Resources and Housing Development Corporation (CRHDC)—Colorado
In its first year, the initiative will have an immediate impact on low and moderate income Latino communities still recovering from the recession. The nonprofit lenders will finance affordable housing and small businesses. In subsequent years, the partners will continue to leverage and expand their capital for lending and establish an equity fund.
This project builds on NALCAB’s successful track record in connection with two major national initiatives, the NSP2 (Neighborhood Stabilization Program 2) National Consortium and Inversiones: A Small Business Investment Initiative, which has been recognized by the Clinton Global Initiative (CGI) as a Commitment to America. Under NSP2, a consortium of nonprofit affordable housing providers, including AHSTI, CPLC, and CRHDC, was awarded $137 million in federal funding to stabilize housing in neighborhoods hit by the foreclosure crisis. The consortium has produced more than 1,600 housing units and created 2,300 jobs. CGI/Inversiones is utilizing NALCAB’s national network of nonprofits to leverage $70 million to create 4,000 jobs by supporting the start up or expansion of 1,500 small businesses in predominantly Latino communities.
As the lead applicant, convener and catalyst, NALCAB will be providing subgrants, technical assistance and training support to the three partners. “With this grant, JPMorgan Chase is making a bold investment in ongoing economic recovery in Latino communities that were hard to hit in the recession,” stated Noel Poyo, Executive Director at NALCAB. “The NALCAB Network will use this funding to drive innovative approaches to affordable housing production and small business lending—ultimately creating jobs and economic opportunity in low-income communities.”
“JPMorgan Chase views community development financial institutions as critical change-agents in underserved communities,” said Morris Camp, President of Chase in San Antonio. “Our $33 million commitment – made through our new CDFI Collaboratives program – will help our partners serve more people in need, as well as catalyze investment in low- and middle-income communities across Texas and the US.”
AHSTI, CPLC and CRHDC, all members of the NALCAB network, are high-capacity anchor institutions in their communities that provide culturally and linguistically relevant services. They are certified by the U.S. Department of the Treasury as Community Development Financial Institutions (CDFI), nonprofit financial institutions that serve low-income communities. The CDFI designation provides opportunities for these organizations to access technical and financial support.