CPC-TruFund BIPOC Developers Equity Fund will invest equity capital and technical assistance to help emerging BIPOC housing developers grow their businesses
New York, NY, October 18, 2021 — The Community Preservation Corporation (CPC), a nonprofit multifamily finance company, and TruFund Financial Services (TruFund), a nonprofit that provides affordable loan capital to small businesses and nonprofits, announced the launch of their new $6 million fund aimed at helping Black, Indigenous and People of Color (BIPOC) within the housing and community development space grow their businesses. The fund will provide equity capital and technical support to eligible BIPOC housing developers who may lack access to affordable capital and support from conventional sources.
This new joint venture between CPC and TruFund will facilitate affordable capital to support New York State-based emerging BIPOC developers with the goal of building their capacity and growing their business infrastructure. Funding provided through the program can be used to acquire, develop, finance, operate, improve, preserve, sell, and dispose of private and publicly financed affordable housing and community development investments within the state. Each project must meet the needs of low- to moderate-income communities or residents and enhance the capacity and progress of BIPOC owned businesses.
“BIPOC entrepreneurs have historically struggled to grow their businesses due to a lack of access to resources; be it access to capital or technical assistance and other supports. This partnership between CPC ACCESS and TruFund leverages the unique strengths of two like-minded CDFIs to maximize the resources we can deliver to achieve a greater impact together,” said Lawrence Hammond, Senior Vice President, Director of ACCESS, The Community Preservation Corporation. “When BIPOC developers have the opportunity to grow and compete in the market we’re not just leveling the playing field, we’re bringing new ideas, better competition, and diversity to the benefit of the entire industry.”
“Enormous and impactful outcomes are realized when organizations with similar interests collaborate to work toward the achievement of mutual goals and objectives,” said James H. Bason, President and CEO, TruFund Financial Services. “One of the most essential aspects of the TruFund-CPC partnership is ensuring racial equity through access to capital for emerging BIPOC Developers.”
As like-minded community development financial institutions (CDFIs) that focus on delivering affordable, flexible capital to underserved communities, the partnership between CPC and TruFund allows each company to leverage their unique expertise. Both partners will equally fund the $6 million program, with CPC providing funding and support through its ACCESS initiative. With nearly two decades of experience, TruFund has disbursed 1,600 loans totaling over $160 million, of which 74 percent has been to minority-owned small businesses. As a 47-year-old nonprofit, CPC has worked in partnership with both public and private partners to deliver more than $12 billion to finance affordable and workforce housing projects in New York and beyond.
To be eligible, applicants will need to demonstrate three years of affordable housing experience, both operate their businesses and reside in New York State, and have completed a minimum of three prior housing projects (new construction and/or preservation) with a maximum of 1,000 units developed. CPC and TruFund will be hosting an online webinar on November 3, 2021, at 11:30am, which applicants are required to attend prior to applying. After the webinar, the link to the application portal will be sent to participants, and applications will be accepted on a rolling basis. For more information, visit: Register for CPC - TruFund BIPOC Developers Fund Information Session
On October 19th CPC and TruFund will be featured at the Opportunity Finance Network’s (OFN) 2021 Virtual Conference where they will lead a panel discussion titled, Collaboration and Capacity Building Strategies to Advance Racial Equity from Start to Finish. They will be joined by consultant Let’s Brainstorm LLC and Genesis Companies, a leading African American owned developer, to discuss standing up an equity fund, and will explore how CDFIs can partner to revitalize historically underserved communities by supporting comprehensive community growth and capital for emerging BIPOC developers.
# # #
About The Community Preservation Corporation (CPC)
CPC is a nonprofit multifamily finance company that was founded in 1974 to provide financial resources to stabilize and revitalize underserved communities. Today, CPC uses its unique expertise in housing finance and public policy to expand access to affordable housing and drive down the costs of housing production, advance diversity and equity within the development industry, and impact the effects of climate change in our communities through the financing of sustainable housing. Since its founding, CPC has invested over $12 billion to finance the creation and preservation of more than 220,000 units of housing through its lending and investing platforms. CPC is a carbon neutral company and has been rated AA- by S&P. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.
About CPC ACCESS
CPC’s Acquiring Capital and Capacity for Economic Stability and Sustainability (ACCESS) initiative is a $20 million program that was created to provide financial resources, capacity building opportunities, and technical assistance to BIPOC entrepreneurs who have historically faced barriers to entry in the real estate development market, with the goal of promoting and enabling greater racial diversity, equity, and inclusion in the industry.
About TruFund Financial Services
TruFund Financial Services, Inc. is a wholly independent national nonprofit Community Development Financial Institution (CDFI). TruFund seeks to stimulate economic development in communities that are underserved by traditional banking institutions by providing fair and accessible capital, hands-on technical assistance, and innovative solutions to small businesses and nonprofit organization. Follow TruFund on Facebook, LinkedIn, and Twitter to find out more about the company's programs and initiatives or visit www.trufund.org.
Kim Carter Evans
VP, Managing Director
TruFund Financial Services, Inc.
Jordyn Leon (for CPC)