The Fund will focus on providing capital to Black-led affordable housing developers, with a majority of the capital deployed to Black women developers, as part of Goldman Sachs’ One Million Black Women initiative.
(January 8, 2022)—The National Affordable Housing Trust (NAHT) recently partnered with Goldman Sachs Asset Management’s Urban Investment Group to establish the Black Developers Initiative Affordable Housing Fund, a $75 million initiative focused on financing superior affordable housing nationwide. The fund will primarily target Black-led developers, with a particular emphasis on Black female developers.
NAHT will manage the fund as part of the Black Developer Capital Initiative (BDCI), launched in collaboration with the Low Income Investment Fund (LIIF) in 2021. This initiative is committed to creating more equitable access to capital for Black affordable housing developers. NAHT, through the fund, will provide these developers with increased access to Low-Income Housing Tax Credit investment capital and support throughout the development process.
Working directly with Black developers, NAHT will help secure market equity at market terms, emphasizing the growth of these partners. This is in response to Black developers’ oft-cited challenge: lack of access to capital. Moreover, a line of credit from LIIF is also included in this initiative to aid developers during a project’s planning and design stages.
Expressing excitement about the partnership, Lori Little, NAHT’s CEO, said, “This fund is a crucial step in our commitment to ensuring equitable access to market-rate capital for Black developers addressing our nation’s affordable housing crisis.”
The Fund’s first investment will be South Meadows, based in Rome, Georgia, where funds will be deployed to finance the new construction of an 80-unit multi-family residential development as well as an on-site 5,500-square-foot early learning center serving local toddlers with daycare services.
The project will be developed by Laurel Street, a Charlotte-based real estate development firm founded by Dionne Nelson 10 years ago. Nelson, who has over 25 years of experience in real estate development and financial services, shared her satisfaction with receiving equity investments from Goldman Sachs and NAHT. She pointed out that such initiatives provide the opportunity to create a more significant impact in communities in need of quality affordable housing. Laurel Street will also receive debt capital through the BDCI from LIIF.
Laurel Street is pleased to receive this equity investment from Goldman Sachs and NAHT. “Initiatives such as One Million Black Women allow us to have a larger impact in communities in need of quality affordable housing through greater access to institutional capital,” said Dionne Nelson, President and CEO of Laurel Street. “Support from such highly regarded partners enhances our ability to access capital today and, in the future, and increases our capacity to create desirable and enduring mixed-income communities.”
About National Affordable Housing Trust
National Affordable Housing Trust (NAHT) is a nonprofit low income housing tax credit (LIHTC) syndicator, specialized financial intermediary and development advisory firm. NAHT raises LIHTC equity from national and regional investors and provides this equity to mission-driven developers and owners who provide quality affordable housing, with resident-focused solutions. NAHT’s mission is to help create and preserve homes for those in need. NAHT is a joint venture of Stewards of Affordable Housing for the Future (SAHF), and Low Income Investment Fund (LIIF). Together, our innovative approach elevates tenant voices and community needs when it comes to creating new developments, generating greater social impact, as well as financial return for investors.
About One Million Black Women
Goldman Sachs’ One Million Black Women initiative is a $10 billion investment strategy alongside $100 million in philanthropic support to help narrow opportunity gaps and positively impact the lives of at least one million Black women over the next decade. Launched in partnership with Black women-led organizations, this initiative from Goldman Sachs, One Million Black Women, will drive investment in housing; healthcare; access to capital; education; job creation and workforce advancement; digital connectivity; and financial health.
About the Low Income Investment Fund
The Low Income Investment Fund (LIIF) is a national community development financial institution (CDFI) that invests in communities of opportunity, equity, and well-being. As a CDFI, LIIF supports projects that have high social value but lack access to traditional financial institutions. Since 1984, LIIF has deployed more than $2.7 billion to serve more than two million people in communities across the country from its five offices: an S&P-rated organization, LIIF funds healthy communities by providing innovative capital solutions.
