Four nonprofits have been selected to receive low-interest loans under a new program that seeks to jump-start affordable and supportive housing projects in New York City.
Launched by FJC—A Foundation of Philanthropic Funds, the new program is backed by a $1 million loan commitment from the Deutsche Bank Americas Foundation’s New Initiatives Fund.
The Working Capital Revolving Fund will provide nonprofits with low-cost debt to cover early-stage preconstruction costs, such as architectural plans and permitting fees, according to officials. Each loan is conditioned on the nonprofit raising matching donations, ensuring the program not only injects capital but also drives new funder engagement.
“Providing enterprise capital to nonprofits will help these affordable housing builders meet the moment as the city works to ramp up housing production,” said Sam Marks, CEO of FJC, a boutique public charity that offers a diverse menu of philanthropic services to a range of stakeholders. “Too often, the nonprofits most committed to an equitable, diverse New York City lack the early-stage funding needed to get a project started. These are mission-driven organizations that stay invested, not just in projects, but in people.”
The initial awardees are:
- Fifth Avenue Committee: A community development corporation that advances a more equitable New York City through integrated, community-centered affordable housing, grassroots organizing, policy advocacy, and transformative education, training, and services;
- New Destiny Housing: A nonprofit that provides housing and services to survivors of domestic violence and their children;
- Urban Pathways: The organization delivers coordinated outreach, housing placement, and supportive services for New Yorkers experiencing or at risk of homelessness; and
- Urban Homesteading Assistance Board: The nonprofit empowers low- and moderate-income communities through affordable homeownership and tenant associations.
Under the program, each organization will receive a $200,000 low-interest loan provided they raise the $100,000 match.
The fund is expected to spur the development of more than 660 affordable housing units, which will move from predevelopment into construction during the term of the initiative, leveraging hundreds of millions of dollars of total development costs from public and private sources, according to Marks.
All of the development will occur in New York City. Fund supporters say the program is a pilot. If successful, it can be replicated in other communities.