Houston, TX (July 18, 2023) – Local Initiatives Support Corporation (LISC) Houston teams up with JPMorgan Chase and the National Development Council (NDC), to announce the launch of an initiative focused on accelerating new opportunities for emerging real estate developers of color while also increasing affordable and workforce housing across the Greater Houston Area. Through the support of JPMorgan Chase, Houston has been selected as one of three markets, including Atlanta, GA and San Diego, CA, to pilot the Supporting Empowered Emerging [Housing] Developers (SEED) Academy. A first-of-its-kind program in Houston, SEED Academy is an 18-month-long, free professional development accelerator program composed of training, mentorship/coaching, and access to grants/capital.
Increasing Affordable Housing
“Houston has a great need for more affordable housing.” says VanNhi Nguyen, Vice President of Community Engagement for JPMorgan Chase, “If we build the capacity - and strengthen the collective voice - of our most underrepresented developers, we can widen the circle of opportunity in Houston.”
Based on the findings from the Harris County My Home is Here study, over the next 10 years, more than 200,000 homes are needed for households and families in Harris County who earn less than $75,000 a year. To address this housing shortfall and to build more inclusive communities, coordination across government, communities, and the real estate development industry is essential. The SEED Academy will work with local emerging developers of color to build their capacity, advance access to more affordable housing, and bring their ideas, perspectives, and local partnerships to create more diverse and inclusive solutions – ones that represent the communities and culture for which Houston is known.
Increasing Representation in the Real Estate Industry
“LISC Houston is proud to partner with JPMorgan Chase and NDC to bring the SEED Academy to Houston”, says Laura Jaramillo, LISC Houston’s Executive Director. “We believe this program will expand the number of developers of color in the market, resulting in more affordable housing units while also generating wealth opportunities.”
The SEED Academy will help bridge an important gap that exists in the representation of real estate developers of color. According to Enterprise Community Partners, just 2% of development companies are Black-led, and only 1.5% of real estate assets under management are controlled by firms owned by Black, Indigenous and People of Color (“BIPOC”) providers (Equitable Path Forward, 2023). There is a growing need to develop more incentives for developers of color, designed to attract adequate development of affordable housing, both rental and home ownership units. These incentives should seek to build capacity, experience, and necessary wealth for emerging developers of color who are committed to furthering community goals for affordable housing development.
As a result of a range of systemic issues of disinvestment and racial inequality, research conducted by Capital Impact has found that developers of color face multiple challenges and obstacles in their field not experienced by white colleagues such as:
Addressing Barriers and Building Capacity
The SEED Academy will provide training to build their skills and capacity in all stages of the development process: from creating a concept to land acquisition to financing, construction, and completion. This program will create a network of academy graduates that can share best practices in expanding equitable development and gain support to tackle larger and more complex projects that meet the needs of underserved and mixed-income communities.
Coupled with the training, participants will be provided technical assistance, mentoring and coaching, and access to resources/capital to reduce barriers of market entry and build their capacity to expand their existing portfolio of real estate projects.
“There are other programs out there that provide training to people who want to be real estate developers. What makes NDC's SEED Academy unique is that we teach our emerging developers the financial nuts and bolts of the development process,” says Jackie Gorman, Senior Director, NDC SEED Academy. “At the end of our program they will be able to put pencil to paper and get a good sense of the financial feasibility of a project. They will have a basic understanding of the resources that are available to finance their projects and how to access those resources. By creating a national network of BIPOC developers, we hope to facilitate knowledge sharing and perhaps incubate some partnerships.”
Through the SEED Academy, graduates will understand how to access the capital necessary to develop their first project; build and use their new network to identify additional projects and partnerships and gain the skills to grow the revenues of their business.
APPLICATION NOW OPEN
The SEED Academy Application is now OPEN. Deadline to apply is 5pm CT, August 16, 2023. For eligibility criteria and more information visit LISC Houston’s website or email houstoninitiatives@lisc.org.
About LISC: One of the country’s largest community development organizations, helping forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so that people and places can thrive. For 34 years, LISC has invested more than $563 million in Houston communities, leveraging an additional $1.45 billion. This investment has created more than 10,000 affordable homes and apartments and 1.2 million square feet of commercial, community and educational space, as well as helped thousands of people improve their financial health and strengthen their neighborhoods. For more information, visit www.lisc.org/houston.
About NDC: The organization’s work focuses on HOMES, JOBS and COMMUNITY. Founded as a national nonprofit in 1969, NDC has worked for over 50 years fulfilling its mission to increase the flow of capital for investment in low-income communities. NDC directs capital to support the development and preservation of affordable housing, the creation of jobs through training and small business lending and the advancement of livable communities through investment in social infrastructure. For more information, visit www.ndconline.org/.
About JPMorgan Chase: Chase is the largest bank in Texas, employing 31,000 people across the state. Chase has 6 million consumer customers and serves 633,000 small business clients statewide. The bank has served clients in Houston for more than 150 years and has 165 Houston-area branches and 5,800 local employees. For more information, visit www.jpmorganchase.com/corporateresponsibility.