United Way of Northeast Florida announced today, in partnership with LISC Jacksonville, a $5 million housing development loan fund for underserved Jacksonville neighborhoods. LISC Jacksonville will serve as the loan servicer, compliance monitor and construction inspector to manage financing for United Way’s new homeownership construction projects in low-income zip codes.
The $5 million, which includes $4 million from United Way’s previously announced $10 million investment in housing strategies as well as a starting contribution of $1 million from LISC Jacksonville, provides readily available capital for emerging and established developers to build housing in some of Jacksonville’s most under-resourced communities. After the homes sell, developers pay back the loan and use any revenue from the projects to continue building additional homes. Developers are also able to reapply for the line of credit as long as conditions are met.
“Many of the challenges we see are rooted in the lack of new affordable housing in under-resourced neighborhoods,” said Dr. Irvin ‘PeDro’ Cohen, executive director of LISC Jacksonville. “While there are a number of emerging developers in Jacksonville who are ready and able to be a part of the solution, they lack access to traditional funding sources.”
To be considered for a loan, a developer must commit to constructing or rehabilitating homes for sale in Duval County zip codes 32202, 32204, 32206, 32208, 32209 or 32254 for families at 120% of area median income (AMI) or below as defined by the U.S. Department of Housing and Urban Development. The construction projects must be owner occupied and borrowers must be willing to build three houses at a time. Rental unit projects do not qualify. Information on how developers can apply for this program can reach out to Dr. Cohen at Icohen@lisc.org.
“Every day, more than 42% of Duval County residents struggle to make ends meet, including being able to afford homeownership,” said Melanie Patz, president and CEO. “Owning a home is not just about the importance of having a roof over your head. It’s also about building assets and improving the financial well-being of a family long-term so they can break the cycle of generational poverty. That’s why United Way invests in this work and believes in this work – we know it will help our community reach its full potential.”
United Way’s Affordable Housing Task Force was launched in December 2022 and met for six months from January to June of 2023. The group was tasked with creating an investment strategy to deploy $10 million of the nonprofit’s historic gift from philanthropist Mackenzie Scott focused on housing strategies for low-income neighborhoods. The Task Force was chaired by Aundra Wallace, CEO of JAXUSA, and Mari Kuraishi, president of the Jessie Ball duPont Fund.
“Affordable housing is crucial for a healthy society and a thriving economy,” said Aundra Wallace, United Way Affordable Housing Task Force co-chair and JAXUSA Partnership president. “In essence, affordable housing is not just a problem for those directly affected; it affects the entire community. It’s a foundational element for individual well-being and economic prosperity. I’m proud to see United Way and LISC join together to support the development of affordable housing in underserved communities in Jacksonville.”
United Way chose LISC as the loan server of $4 million in construction funding following a request-for-proposals (RFP) process that opened in April 2024. The remaining $6 million includes $4 million in home preservation work, $1 million in capacity-building for nonprofits and community development corporations, and $1 million to invest in additional development efforts.
“Housing inventory shortages, an increase of purchases by private investors, threat of displacement and rising housing costs are all challenges seen in the Jacksonville housing marketplace,” said James Ellout, vice president of community impact at United Way. “While research shows the overall housing market in Duval County is cooling down, the demand for more affordable homes remains high. This revolving loan fund will serve as a permanent and – with interest return rates – growing pool of new construction dollars for more affordable homes. It’s a huge win for Jacksonville in stabilizing families and neighborhoods in perpetuity.”
Supplementing this historic United Way investment is LISC Jacksonville’s Emerging Developer Program, launched last fall. The program provides both lending solutions as well as technical assistance to new and emerging builders in Duval County. In addition to providing lines of credit, LISC Jacksonville also provides guidance to those same developers on how to borrow from more traditional lending sources in the future.
“With this additional initiative aimed at affordable housing, we are filling a gap that traditional lending institutions do not currently serve,” said Cohen. “It also enables us to further address other social issues, such as the lack of available lending sources for entrepreneurs of color. So, our focus is to provide support to this additional underserved, and frankly, under-utilized, population – a population that lives, works, and plays in the same neighborhoods that LISC supports and that are in desperate need of quality affordable housing.”
To read more about LISC Jacksonville’s Emerging Developer Program, visit lisc.org/jacksonville or contact Chuck Shealy, real estate and lending program officer for LISC Jacksonville, at cshealy@lisc.org.
To learn more about United Way’s housing work and this development loan fund, email Sarah Henderson, vice president of marketing and communications, who will direct you to the appropriate United Way team member.
About United Way of Northeast Florida
Founded more than 100 years ago in 1924, United Way of Northeast Florida has earned a reputation as a respected and efficient philanthropic organization. United Way envisions a community of opportunity where everyone has hope and can reach their full potential. The organization’s mission is to solve Northeast Florida’s toughest challenges by connecting people, resources and ideas. United Way focuses on improving economic mobility in the following impact areas: basic needs, financial well-being and community resiliency. The nonprofit organization’s long tradition of addressing the human-service needs in Duval, Baker, Clay, Nassau and northern St. Johns counties is made possible through the commitment of thousands of volunteers, donors and community partners. To learn more, visit unitedwaynefl.org, or follow United Way of Northeast Florida on Instagram, Facebook and LinkedIn.
About LISC Jacksonville
Local Initiatives Support Corporation (LISC) helps residents transform distressed neighborhoods into healthy, sustainable communities that are good places to live, work and play. Since 1999, LISC Jacksonville has invested nearly $500 million in urban core neighborhoods, including developing affordable housing as well as retail and community space, and helped create more than 3,000 jobs. For more information about LISC Jacksonville, visit www.lisc.org/jacksonville.
Be the first to comment