New Business and Philanthropic Pledges by JPMorgan Chase Aimed at Solving Housing Affordability Issues in D.C.
JPMorgan Chase unveiled new and expanded business and philanthropic commitments as part of a holistic approach to help close the housing affordability gap. These commitments include the infusion of more than $7.65 million in philanthropic capital into three nonprofits focused on improving housing affordability and stability for underserved households, particularly Black, Latino, and Hispanic households in Washington D.C. This financial injection is anticipated to bring tangible solutions and stability to these communities.
In an ambitious move to further extend its outreach, Chase Home Lending has broadened the scope of its $5,000 Homebuyer grant, which falls under its Special Purpose Credit Program (“SPCP”). The grant, originally limited to certain markets, will now encompass 16 additional regions, including over 400 majority Black, Hispanic, and Latino communities in the Washington D.C. region. This strategic expansion marks a pivotal moment in the bank’s approach to addressing the pressing issue of housing affordability.
This announcement comes two years after JPMorgan Chase committed a whopping $400 million over five years to enhance housing affordability and stability for underserved households. From 2021 until now, the bank has successfully disbursed more than $224 million in the form of low-cost loans, equity investments, and grants to 153 organizations across the U.S. This extensive effort has led to the creation or preservation of over 12,500 housing units, benefiting more than 46,000 households, and leveraging an additional $680 million in capital.
The housing crisis in the Washington D.C. region is primarily characterized by affordability and scarcity issues. The Metropolitan Washington Council of Governments estimates the region requires 320,000 additional housing units by 2030 to meet rising demand. This housing shortage has resulted in unhealthy competition with an excessive number of people competing for limited housing. Moreover, the U.S. Census Bureau reveals a glaring homeownership disparity among racial groups in D.C., with homeownership rates for Black and Hispanic households at 50% compared to 70% for White households.
In a bid to address these problems, the new philanthropic commitments will support programs that focus on increasing the availability of affordable, climate-friendly housing and boosting homeownership and wealth for underserved households, specifically Black, Latino, and Hispanic households in the D.C. region. Here is a brief look at the initiatives:
- $4.45 million has been allocated to the Coalition for Non-Profit Housing and Economic Development (CNHED), which will spearhead a collective effort with several partners to boost the supply of affordable housing units and assist residents in becoming small building owners, thereby building wealth.
- National Housing Trust (NHT) has been granted $3 million to help promote decarbonization efforts in affordable housing by providing technical assistance to building owners. This effort aims to improve resident health outcomes, engage community members, decision-makers, and lenders to enhance accessibility to public resources, and ultimately achieve an average monthly rent saving of $1,200 for tenants.
- Manna is set to receive $205K to support its focus on increasing homeownership for underserved households, including people of color, through property acquisition, affordable housing renovation, and community engagement. Manna will use this commitment to address supply barriers and advocate for dedicated resources to create and renovate units.
The firm’s CEO of Chase Home Lending, Mark O’Donovan, stated, “Affordable, sustainable homeownership is essential to building strong communities and intergenerational wealth. We hope these new commitments will provide meaningful impact for people who need it most in the Washington D.C. region, and we’ll continue to partner with the public sector to ensure that’s the case.”
Nationally, the housing crisis has worsened due to a shortage of affordable homes for purchase, compounded by high-interest rates and increased home prices. This has pushed sustainable homeownership out of reach for many underserved households.
In response, JPMorgan Chase has committed funds to innovative models that overcome the barriers to accessing homeownership and the shortage of single-family homes. This includes a $2.5 million commitment to the Center for Community Self-Help to scale its mortgage innovations for low to moderate-income borrowers, and a $3 million commitment to the Housing Partnership Network to support the Community Aggregators Group.
These commitments are part of JPMorgan Chase’s broader Housing Innovation Program, which seeks to generate tangible solutions for everyday Americans through a combination of unique resources, including business, philanthropy, research, and policy expertise.
As part of their strategy, JPMorgan Chase has also hired over 300 community-focused professionals, opened or revitalized over 300 community-style branches, and expanded Chase Home Lending’s $5,000 Homebuyer Grant. These measures aim to increase access to affordable home loans, low-cost checking accounts, and financial health education workshops, furthering their commitment to economic inclusion and homeownership opportunities.
JPMorgan Chase continues to advocate for affordable housing through data-driven policy solutions and research. The firm’s research arm, the JPMorgan Chase Institute, released new research last week underscoring the need for community efforts to promote homeownership.
About JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE: JPM) is a premier financial services firm based in the United States, operating globally. As of March 31, 2023, the firm had assets totaling $3.7 trillion and stockholders’ equity of $303 billion. The company offers a broad range of financial services, including investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. JPMorgan Chase serves millions of customers in the U.S. and numerous prominent corporate, institutional, and government clients worldwide. For more information about JPMorgan Chase & Co., please visit www.jpmorganchase.com.