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 boost homeownership among the Black, Indigenous and other minority communities.
Enterprise’s Equitable Path Forward aims to tackle disproportionately-low homeownership rates for Black Americans and other people of color, relative to white Americans; 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“).