Century Housing Supports Minority and Women Owned Affordable Housing Developers with New Special Purpose Credit Program
CULVER CITY, Calif., Aug. 3, 2022
Chase facility will augment the Century California Fund dedicated to supporting the communities in which Century operates
CULVER CITY, Calif., Aug. 3, 2022 /PRNewswire/ -- Century Housing is proud to announce the launch of the Century Emerging Developers Program, a Special Purpose Credit Program (SPCP) specifically targeting minority and women owned developers and preservers of affordable housing. This program will initially be funded by a dedicated credit facility provided by Chase in the amount of $15 million. Through this program, Century Housing will provide financing to minority and women owned developers who, because of organizational size, lack of capitalization or limited track records, have not had access to financing or to financing on the same terms as larger, more established developers.
Century Housing's first loans under this program are a $3.4 million acquisition and a $1.5 million predevelopment loan to a project in Leimert Park that is being developed through a partnership between Liberty Land Trust and Venice Community Housing. Century Housing provided early stage financing for what will eventually become a 61-unit affordable housing property across the street from a new metro station along the Crenshaw Line.
Rated AA / AA- by Fitch and S&P, respectively, Century Housing will be the lender under the SPCP. Net proceeds generated by the SPCP will be contributed by Century Housing to the Century California Fund (CCF). CCF is a newly created Century entity that will offer additional financial and social support, beyond the scope of Century's primary businesses, in the communities where Century has its main affordable housing lending and development operations.
While Century believes that safe, quality, affordable Housing provides the essential foundation for individuals and families to grow and pursue dignified and healthy lives, it also understands that housing alone is not sufficient. Healthy communities also require access to quality education, health care, jobs, infrastructure and venues for safe and healthy social interaction.
In its second year of operations, CCF is continuing its focus on providing educational opportunities to lower income and minority individuals with a scholarship program to support individuals pursuing careers in affordable housing.
Additionally, CCF is working to create wealth among women and minority populations by supporting small businesses and entrepreneurs by providing financial support to micro and small business lenders.
"We're proud to support Century Housing as they increase financing for minority and women owned developers throughout California," said Vince Toye, Head of Community Development Banking and Agency Lending for Chase. "It's exciting for us to be part of a program that will help even the playing field in affordable housing development and preservation for historically marginalized developers, by providing access to capital and giving them the opportunity to build and establish a track record of success."
According to Alan Hoffman, Century Housing's CFO, "historically, social biases, legal restrictions and practices have created persistent and systemic racial and gender-based inequalities which are at the root of so many of our society's challenges. Targeted and specific programs, such as our new Special Purpose Credit Program and the Century California Fund are essential to begin to address these chronic issues."
"This program will address the needs of women and minorities who are often unable to compete in the development of critical housing projects because of the size of their organizations, historical lack of experience and capital," said Yvonne Burke, Chair of the Century Housing board of directors.
"The biggest challenge minority developers face today is the underrepresentation of Black and Brown professionals in the construction industry," said Tracey Burns, Director of Century Housing's new SPCP. "This underrepresentation is due to minority developers not having access to capital. Century Housing's lending program will increase access to capital for emerging developers. This will give the developer the opportunity to become bankable, secure capital and compete in the real estate market."
About Century Housing
Century Housing is a mission-driven Community Development Financial Institution (CDFI) supporting quality affordable home development throughout California. Century Housing provides innovative end-to-end financing from acquisition to permanent loans and serves as a reliable partner to state and local agencies, municipalities and other CDFIs in pioneering impactful financing programs like GSAF or LACHIF. For information on how to invest in Century Housing and its mission please visit the Invest page on our website: century.org/invest/
For further information on Century Housing's Special Purpose Credit Program for minority and women owned affordable housing developers, please contact:
Tracey Burns, Director SPCP: (310) 642-2004, email@example.com
Josh Hamilton, Head of Lending: (310) 642-2030, firstname.lastname@example.org
SOURCE Century Housing