Nearly $1 Billion Earmarked By Ally For Housing Initiatives, Empowering Communities

DETROIT, July 11, 2023 / — In a significant move to address economic disparities and promote accessible housing, Ally Financial Inc. (NYSE: ALLY), the leading all-digital bank in the U.S., has announced an impressive investment of nearly $1 billion in 2023. The purpose of this considerable financial commitment is to target the enduring issues of the wealth gap and obstacles to economic mobility, mainly through innovative housing initiatives.

The bank, with roots in Detroit and Charlotte, has pledged to distribute over $4 million in grants and investments in these hometowns. The funding aims to back initiatives that make housing affordable and accessible to those who need it most. A total of 17 organizations working in these cities will receive support from Ally and the Ally Charitable Foundation. This support is envisaged to create opportunities for homeownership and offer underprivileged communities improved access to safe, reasonably priced housing.

“Everyone is entitled to a safe place they can call home, but the sad reality is that home affordability has sunk to its lowest point in history,” expressed Ali Summerville, a business administration executive at Ally and the chair of the board for the Ally Charitable Foundation. “It’s our responsibility as an ally to stand up and back affordable housing and homeownership initiatives. Our focus is on generating a lasting, positive impact in the communities we live in and serve.”

In an effort to enhance affordable housing access, the Ally Charitable Foundation has committed to a $3 million equity investment in the Housing Impact Fund II. The goal is to acquire existing affordable housing units, also known as “NOAH” or Naturally Occurring Affordable Housing, in Mecklenburg County, N.C. HIF II’s role is to renovate these properties and add deed restrictions to preserve their affordability for households earning between less than 30% and 80% of the area’s median income.

Further bolstering its support for accessible housing, the Ally Charitable Foundation is also investing $1 million into the Charlotte Housing Opportunity Investment Fund II. Managed by Local Initiatives Support Corporation (LISC) Fund Management, in partnership with LISC Charlotte, the fund has a specific aim to bridge the ever-widening affordability gap. This is achieved by financing housing developments that cater to residents with a variety of incomes, including those who are low and extremely low earners. This recent initiative builds upon Ally’s investment in the inaugural Charlotte Housing Opportunity Investment Fund, a venture that was part of a $70 million amalgamation of land donations, grants, and reduced lending for developers. So far, CHOIF has enabled almost 1,500 affordable housing units, with 95% of these homes being affordable for individuals or families earning 80% or less of the Area Median Income (AMI). Additionally, 24% of these units are affordable for those earning 30% or less of the AMI.

In addition to these commitments, the Ally Charitable Foundation has promised almost $2.2 million in grants to 84 organizations in Detroit and Charlotte as part of a broader funding initiative in 2023. The foundation has earmarked $440,000 in grants for 14 nonprofit organizations specifically driving affordable housing initiatives. Out of this sum, four local Detroit organizations will receive $100,000, and nine local Charlotte organizations will be supported with $240,000. The national nonprofit, Rebuilding Together, known for its work in creating safe and healthy housing, is set to receive $100,000 to bolster its efforts in both Detroit and Charlotte.

Chris Perry, vice president of development at Rebuilding Together, shared, “Countless people in our communities lack the resources to maintain a safe and healthy home, particularly after a natural disaster. Our focus is on aiding the most vulnerable who require essential home repairs. The generous grant from the Ally Charitable Foundation will empower us to enact transformative changes and ensure safe homes for everyone we serve.”

The complete roster of nonprofits in Charlotte, N.C., which are beneficiaries of affordable housing grants, comprises:

• Charlotte Family Housing – Support for working families experiencing homelessness
• Crisis Assistance Ministry – Provides stability services for families in crisis (rent and utility aid, financial coaching, clothes)
• Freedom Fighting Missionaries – Offers community support and advocacy for formerly incarcerated and criminal justice-involved individuals
• Roof Above – Provides affordable housing options to end homelessness
• Supportive Housing Communities – Offers permanent supportive housing and supportive services to unstably housed people
• The Harvest Center – A transitional housing program for homeless individuals and families
• The Relatives – Guides youth in crisis to safety, stability, and independence
• The Salvation Army – Offers emergency shelters for women, children and families
• United Way of Greater Charlotte – Supports communities through place-based philanthropy

The comprehensive lineup of nonprofits in Detroit, Mich., that are recipients of affordable housing grants, encompasses:

• Covenant House Michigan – Unconditional love, respect, and relentless support for young adults experiencing homelessness
• Pope Francis Center – Provides vital services and housing advocacy to people experiencing homelessness
• United Community Housing Coalition – Helping low-income Detroiters prevent eviction and foreclosure
• Vista Maria – Advocates for vulnerable youth and human trafficking survivors through restorative mental health treatment and transitional living programming

Building on the ongoing initiatives in its hometowns, Ally Financial is also extending support to SoLa Impact and its affiliated non-profit organization, the SoLa Foundation. As the title sponsor, Ally is backing the launch of a pioneering program, “Pathways to Homeownership.” This initiative is a multi-faceted endeavor designed to transition renters into homeowners, while simultaneously propelling economic mobility.

“Pathways to Homeownership” offers financial education, empowerment resources, and a savings plan targeted at low to moderate-income households in South LA. This innovative program seeks to empower these communities by providing them with the necessary tools to establish and nurture generational wealth. A key feature of this initiative is a unique blend of rent-forgiveness and savings match strategies. These are aimed at assisting Black, Hispanic, and Latino renters in the accumulation of substantial savings, thereby enabling them to afford down payments on their homes.

In a synergistic partnership with Ally, the goal of the Pathways program is to leverage financial tools, incentives, and comprehensive workshops to guide participants towards homeownership upon completion of this multi-year program. As an initial investment, Ally has contributed a $50,000 grant towards the establishment of the program. This builds upon their prior $25 million investment in SoLa’s Black Impact OZ Fund, a fund managed by SoLa Impact, a leading Black-led developer of affordable and workforce housing.

Ally Bank is a proactive participant in the Community Reinvestment Act (CRA) and commits approximately $1 billion annually towards loans and investments centered around affordable housing. These activities encompass loans to intermediary entities and equity investments in projects financed under the federal low-income housing tax credit (LIHTC) program. One of Ally’s recent contributions includes a $15 million investment in Enterprise’s Equitable Upward Mobility Fund, a $190 million fund tailored to foster economic mobility with a particular emphasis on racial equity. Ally’s outreach extends beyond its hometowns, with projects spanning diverse regions such as Utah, Arizona, California, Colorado, Idaho, Montana, New Mexico, Nevada, Oregon, Washington, and Wyoming.

These efforts harmonize with Ally’s existing collaborations with organizations focused on homeownership such as Homewise and ROC USA Capital, as well as nonprofits like Habitat for Humanity. Ally’s strategic approach to giving prioritizes affordable housing, financial education, and workforce development, all aimed at confronting and dismantling the wealth gap and hurdles to economic mobility.

About Ally Charitable Foundation: The Ally Charitable Foundation, a 501(c)(3) nonprofit organization, was chartered in North Carolina in 2020. The foundation concentrates on enhancing economic mobility, combating systemic racism, and supporting employees and communities during times of crisis. For further information on the Ally Charitable Foundation, visit www.ally.com/about/social-impact/grants.

About Ally Financial: Ally Financial Inc. (NYSE: ALLY) is a leading financial services company boasting the nation’s largest all-digital bank and a top-tier auto financing business. Guided by its mission to “Do It Right,” Ally continually strives to be a tireless ally for customers and communities. Serving more than 11 million customers, the company offers a diverse array of online banking services such as deposits, mortgages, personal lending at point-of-sale, and credit card products. Additionally, Ally provides securities brokerage and investment advisory services. The company also encompasses a robust corporate finance branch that caters to equity sponsors and middle-market companies, alongside its auto financing and insurance services. For more details, please visit www.ally.com and follow @allyfinancial on social media.

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