Chemical creates $100M housing development fund.
The fund will enable non-profit community development corporations (CDCs) to produce thousands of affordable homes over the next four years in low-income areas where Chemical has retail banks throughout New York, New Jersey, Texas and Florida.
Chemical's $100 million investment will be implemented through the Enterprise Social Investment Corporation (ESIC), a subsidiary of the Enterprise Foundation and the National Equity Fund (NEF), an affiliate of Local Initiatives Support Corporation CLISC). In New York City, Chemical is committing $50 million to the New York Equity Fund, which is a joint venture of Enterprise and LISC, managed by the NEF. Additionally, $10 million will be invested in Enterprise's Corporate Housing Initiatives fund earmarked for permanent housing for the homeless and people with special needs located in New York City and New York State; and $15 million will be directed to affordable housing in New Jersey, Texas and Florida through the Enterprise Housing Partners Fund. Another $25 million will be invested in LISC's National Equity Fund for affordable housing in New Jersey, Texas and Florida.
Edward D. Miller, president of Chemical Banking Corporation, said, "This unprecedented investment underscores Chemical Bank's leadership in serving low and moderate income communities. This $100 million fund is part of our $1 bill ion five year commitment to economically underserved areas that we announced in 1992. We are happy to announce today that we will exceed that $1 billion goal by the end of this year, two years ahead of schedule."
The New York Equity Fund works closely with the City of New York through its Department of Housing Preservation and Development and has helped neighborhood based groups to develop close to 6000 apartments in formerly vacant, City-owned buildings. With Chemical's new infusion of funds, this program will produce hundreds of units of decent affordable housing available to low income families and the homeless.
Chemical's investment in affordable housing is made possible through the federal Low Income Housing tax Credit. Enacted in-1986, this federal provisior was made permanent by Congress in 1993 and enables corporate investors tc receive a credit on their federal income taxes in exchange for their equity investments in the renovation or construction of affordable, rental housing.
Chemical Bank is in the third year of a five year $1 billion community development commitment for new loans and grants in low and moderate income areas in its marketplace. In addition to this new equity fund, Chemical's commitment covers affordable home mortgages, financing for housing and commercial development, small business loans and grants and loans to community-based, nonprofit organizations.
ESIC, a subsidiary of The Enterprise Foundation, has raised more than $840 million from more than 140 corporate investors to produce approximately 28,000 affordable homes in urban, suburban and rural communities nationwide. The Enterprise Foundation, rounded in 1982 by Jim and Patty Rouse, is a national nonprofit organization that works with 3 88 neighborhood groups in more than 150 locations to help provide decent affordable homes for low income people in the United States and to give people the opportunity to move up and out of poverty and into the mainstream of American live.
LIS C is the nation's largest community development support organization and provides financial and technical help to community development corporations striving to rebuild their low income communities in 32 cities and regions nationwide. Since it was created by the Ford Foundation in 1979, LISC has raised close to $1 billion in gifts and investments from corporations and philanthropies and assisted 875 CDCs in rebuilding their neighborhoods and developing more than 44,000 homes.
NEF was established by LISC in 1987 to organize partnerships of major corporations to invest in affordable rental housing owned and developed by nonprofit community development corporations (CDCs). In return, NEF investors receive credits on their income tax obligations through the federal Low Income Housing Tax Credit. Since its inception, NEF has raised nearly $900 million from 115 corporations to develop' approximately 20,000 affordable homes across the country.
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|Title Annotation:||Chemical Banking Corp. creates $100 million fund for development of affordable housing in New York, New Jersey, Texas and Florida|
|Publication:||Real Estate Weekly|
|Date:||Mar 2, 1994|
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