On March 5, 2018, JPMorgan Chase will launch its fifth round of Partnerships for Raising Opportunity in Neighborhoods (PRO Neighborhoods) funding. This is part of a $125 million, five-year initiative to identify and support custom solutions for the unique challenges facing disadvantaged neighborhoods in U.S. cities, such as providing affordable housing and economic opportunity.
The ongoing revitalization of American downtowns has seen restaurants, businesses and residential developments result in bustling streets and thriving local economies. But often, surrounding neighborhoods haven’t experienced the same renaissance. Many families in nearby communities continue to grapple with limited housing, few services and grim commercial landscapes.
Keona Tate (pictured above) saw promise where many could not. In the south side Chicago neighborhood of Woodlawn, she was happy to find a vacant, two-family brick home within walking distance of both her job and her son’s high school.
Tate purchased the property with the help of a local homebuyer assistance program through the Chicago CDFI Collaborative (a 2014 PRO Neighborhoods winner) and plans to live in the building’s first-floor unit while renting out the other one. She hopes to move in within a few months but, for now, she’s looking forward to fixing up the place. “It just needs some tender love and care,” the 34-year-old University of Chicago police officer said.
PRO Neighborhoods brings Community Development Financial Institutions (CDFIs) together to jump-start community and economic revitalization in neighborhoods challenged by blight or gentrification. The initiative includes an annual competition among CDFIs to foster collaboration and investment in areas that help neighborhoods thrive and grow, such as small businesses, health and education facilities, retail centers and essential services. Participating CDFIs leverage grant funding with the goal of scaling the most promising and sustainable approaches.
In addition to the CDFI Collaboratives competition, the other components of PRO Neighborhoods entails supporting forward-looking research to understand the implications of demographic shifts, and to help cities become smarter about what strategies will work best and where to apply local support, and providing critical seed capital to test new models that will enable our partners to acquire, refurbish and provide affordable housing where it is needed most.
PRO Neighborhoods is a significant component of the firm’s model for impact, which helps develop inclusive growth through strategic philanthropic investments in crucial pillars of economic development.
Thriving neighborhoods are critical to the long-term economic success of individuals, communities, and cities. At a time when economic growth is often directed toward reviving commercial corridors and downtowns, many neighborhoods, families and small business owners are being left behind. Every city faces its own set of challenges and needs its own comprehensive strategy for economic growth that ensures opportunities to prosper are extended to distressed neighborhoods and the families that live there.
To date, JPMorgan Chase has hosted 4 PRO Neighborhoods competitions supporting 21 Collaboratives, representing more than 60 CDFIs across the country. A 2017 impact assessment by the Joint Center for Housing Studies of Harvard University found that as of December 2016, the 42 winners of our first two competitions have issued a wide range of loans totaling more than $320 million, helped create or preserve nearly 2,700 units of affordable housing, supported more than 6,800 jobs, and leveraged an additional $549 million in outside capital.
On March 5, JPMorgan Chase is issuing a fifth Request for Proposals (RFP) from CDFIs that share our commitment to promoting inclusive growth through collaboration. The RFP closes on April 20 and winners will be announced in October. With equitable and inclusive economic growth at the heart of the strategy, they recognize the importance of having a plan in place to develop and drive equitable outcomes for families, businesses, and communities. Therefore, this year’s RFP will focus on supporting more holistic strategies in which capital plays a key role in connecting vulnerable communities to the opportunities they need to thrive.
This year, they are soliciting proposals for two opportunities:
- Planning for Equitable Development Grants (aka “planning grants”) for local multidisciplinary leaders to identify the greatest needs facing their communities and develop capital plans to advance equitable development in distressed neighborhoods. These plans will outline an intentional, capital strategy prepared by a collaborative of CDFIs that can address some of the biggest barriers to opportunity in distressed neighborhoods. Successful applicants will be eligible for a one-year grant of up to $100,000.
- Collaborative Capital for Equitable Development (aka “capital grants”) for communities that already have an equitable development plan to address a documented challenge within their service area(s). They are looking to support CDFI Collaboratives with a capital strategy to advance their plan. Successful applicants will be eligible for a three-year grant of up to $5 million.
Similar to last year, this year’s RFP will encourage applicants to be specific about the neighborhoods and populations they are serving, support the growth of diverse led CDFIs, aim to build the balance sheet of CDFIs with net assets of less than $75MM, and continue to support innovative strategies by local CDFIs that combine balance sheets, talent and technology to advance economic opportunity in distressed neighborhoods. While applications are encouraged from the full list of eligible markets, they are particularly interested in solutions in:
- Atlanta, GA
- Broward County, FL
- Central Valley/Fresno, CA
- Dallas, TX
- Denver, CO
- Houston, TX
- Las Vegas, NV
- Newark, NJ
- New Orleans, LA
- Wilmington, DE
OFN is hosting an informational call with Colleen Briggs from JPMorgan Chase on Tuesday, March 13th from 2:00 – 3:00 PM EST to answer your questions about the program and RFP. Two past winners will join the call to talk about best practices and lessons learned with equitable development planning: National Association for Latino Community Asset Builders (NALCAB) and 11th Street Bridge Park (in Washington, DC).
Date: Tuesday, March 13, 2018
Time: 2:00 – 3:00 PM EST
RSVP here: https://register.gotowebinar.com/register/6578998581562740738
Photo courtesy of JPMorgan Chase.