ImpactAlpha, December 16 — Netflix committed $25 million to an ambitious effort by Enterprise Community Partners to uproot the legacy of systemic racism in the U.S. housing market.
Maryland-based Enterprise is looking to raise $350 million, and catalyze $3.1 billion more, to diversify the real estate sector and create affordable rental housing in Black, Indigenous and other minority communities.
Enterprise’s Equitable Path Forward aims to tackle systemic racism in the rental housing U.S. market; the widening wealth gap between Black and white Americans; and low representation of Black and other people of color in the real estate sector – just 2% of real estate development firms are Black-led.
The $350 million Growth Fund will provide debt, equity, grants and credit enhancement to attract additional capital. Enterprise is seeding the fund with $10 million in first-loss capital from its own balance sheet. The organization is also earmarking $15 million to advise companies in communities where Enterprise owns and manages affordable housing, and $10 million to diversify leadership in the real estate sector.
Netflix earlier committed to moving $100 million of its cash into Black-led lenders, businesses and institutions, including Hope Credit Union and Local Initiatives Support Corp. (see, “Netflix to move $100 million in cash deposits to lenders in Black communities“).