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May 2024 » thefivestar.com 27 May 2024 I N D U S T R Y U P D A T E address this issue in Washington, D.C. and in communities across the country." "Chase Home Lending is focused on providing innovative solutions, prod- ucts, and services to help more people to attain, and sustain, homeownership," said Mark O'Donovan, CEO of Chase Home Lending. "When we work together to address affordable housing challenges, we can go further. Today's announce- ment is a great example of how business, philanthropy and local partnerships can join forces to effect change." The firm is also focused on advanc- ing economic inclusion and increasing homeownership opportunities through its businesses. The bank has taken a local approach in communities that have faced historical barriers to banking to help offer greater access to affordable home loans, low-cost checking accounts, and financial education workshops. The Challenge H omeownership is a proven source of wealth building; however, under- served communities face persistent challenges in obtaining and maintain- ing their homes. In nearly every state, people of color are less likely to own homes compared to white households. For example, in Washington, D.C., the estimated 82,000 residents—12% of the city's population—that do not have sta- ble housing are overwhelmingly Black, Hispanic, or Latino households. As part of JPMorgan Chase's strategy to combat the housing affordability cri- sis, the firm is supporting organizations advancing innovative homeownership fi- nancing and wealth building models that can be successfully scaled throughout the country. By working with organiza- tions on the local and national levels, the firm aims to help support underserved individuals throughout their homeown- ership journey, whether they be first time homebuyers or current homeowners. This philanthropic announcement builds on JPMorgan Chase's $400 mil- lion five-year commitment to improve housing affordability and stability for underserved households. To date, this support has helped organizations serve more than 157,000 households, including stabilizing 59,000 households through eviction or foreclosure prevention models, helped preserve or create more than 14,500 affordable housing units, and allowed nonprofit organizations to lever- age $1.8 billion in additional capital. One of the grantees, Washington, D.C.- based City First Enterprises (CFE), was awarded $3 million to support their efforts to help eligible Black and Latino first-time homebuyers with down payment and clos- ing costs assistance in Washington, D.C., and select counties in Maryland. Through its subsidiary Homes by CFE, a Commu- nity Development Financial Institution (CDFI) mortgage lender, CFE supports first-time borrowers with funds to lower their out-of-pocket expenses associated with buying a home. Down payment and closing costs represent the most significant barrier to homeownership, especially in communities of color. This innovative new program bridges the homeownership gap by offering up to 20% of the home's pur- chase price for down payment assistance and additional closing cost support for income-qualified borrowers. Chase is one of Homes by CFE's first trust lending part- ners, and to-date has provided affordable mortgages to seven borrowers who have leveraged the Chase homebuyer grant, Chase DreaMaker product, and Homes by CFE's down payment assistance to success- fully buy their first homes. "Everyone knows that homeownership is one of the key engines that powers social mobility and wealth building over gener- ations; it just hasn't been accessible to all of us," said Oswaldo Acosta, CEO of City First Enterprises. "We launched Homes by CFE to demonstrate that with equitable access to flexible capital, borrowers who were previously locked out of owning a home can bridge this gap. Given how homeownership works in this country, it's crucial to have private-sector partners like JPMorgan Chase helping to lead the way forward on this innovative model." "We know that for many families, homeownership is a critical tool for building and passing on wealth," said Nina Albert, D.C.'s Deputy Mayor for Planning and Economic Development. "We're grateful that through JPMorgan Chase's partnership with local D.C. organizations, we can build on Mayor Bowser's housing investments and help more District resi- dents become homeowners." JPMorgan Chase has also been work- ing with The Urban Institute to support these grantees by measuring impact and sharing insights with the housing industry to advance housing stability and affordability for Black, Hispanic, Latino, and other underserved households. Ad- ditionally, to support the financial health of consumers as part of this program and beyond, the firm is working with behav- ioral design nonprofit ideas42 to help consumers better protect and improve their credit, including preparing families for homeownership.