JPMorgan Chase Awards $5 Million PRO Neighborhoods Grant
JPMorgan Chase has awarded a total of $5 million to the Florida Community Loan Fund (FCLF) and New Jersey Community Capital (NJCC) to increase affordable housing in Central Florida. NJCC joined FCLF to receive the award in Orlando.
The three-year investment will allow both organizations to develop stable affordable housing of low- to moderate-income renters by:
- Working with innovative developers like Crisis Housing Solutions to develop multifamily rental complexes using repurposed shipping containers;
- Purchasing a bulk of real estate owned (REO) properties and rehabilitating them for affordable rental housing; and
- Acquiring and renovating existing multifamily properties to preserve long-term affordability.
"Central Florida has one of the nation's highest rates of cost-burdened renters and the greatest shortage of affordable housing," said Mel Martinez, Chairman of the Southeast Region for JPMorgan Chase. "We're investing in this region because we see local leaders and organizations working together to come up with innovative solutions to fix this problem."
Due to the lack of affordable rental units and other barriers, one in 50 families in Central Florida - including one in 17 children - experience homelessness each year, according to a 2015 report by Barbara Poppe and the Central Florida Commission on Homelessness. Many of these families end up living in hotels or motels, doubling up with other families, or in homeless shelters.
"To effectively address Central Florida's inadequate supply of affordable housing, the solutions must be implemented at the regional level. We must continue to work together as a collaborative marketplace," said Orange County Mayor Teresa Jacobs. "We are thrilled to once again receive the generous support of JPMorgan Chase. Thanks to their commitment, vision and leadership, together we are making Orange County one of the best places to live, work and raise a family."
The Florida Community Loan Fund will serve as the fiscal manager for the collaborative and provide on-the-ground management of program activities. It will also lead the multifamily project and use its relationships with Florida community development organizations and government entities to advance the initiative into other cities.
"We have worked to drive inclusive and equitable growth in Florida for many years. JPMorgan Chase's investment will scale our impact in the Central Florida region," said Ignacio Esteban, CEO of Florida Community Loan Fund. "With this support, we will expand the local affordable housing market, enabling more individuals and families to thrive in our community."
New Jersey Community Capital will lead the investment process to purchase REO properties and work with local non-profits to rehabilitate those properties. It will also partner with local developer Crisis Housing Solutions to identify and purchase land to build new multifamily rental complexes using repurposed shipping containers.
"We are honored to partner with Florida Community Loan Fund, share our mission and expertise, and expand our geographic footprint into Orlando to stall the effects of the national rental housing crisis," said Wayne T. Meyer, President of New Jersey Community Capital. "We are grateful for the tremendous support from JPMorgan Chase and look forward to growing affordable rental housing in the Sunshine State."
JPMorgan Chase has awarded more than $2 million to support affordable housing solutions in Central Florida in the last two years - including a recent $450,000 grant to Crisis Housing Solutions to develop the nation's first multifamily rental complex using repurposed shipping containers.
This new $5 million investment is part of JPMorgan Chase's $125 million, five-year PRO Neighborhood initiative that awards collaborative partnerships that revitalize neighborhoods in cities across the nation that have been left behind by the recovery. PRO Neighborhoods provides the necessary capital to local community development financial institutions (CDFIs) to address the drivers of economic opportunity in neighborhoods. The CDFIs work together to pool resources and expand lending activities for building health and education facilities, open retail centers and support community services in area neighborhoods.