HAND Member Spotlight: City First Enterprises, A TRANSFORMER and a COLLABORATOR Creating Housing Opportunities for Families in our Area
City First Enterprises (CFE) is a nonprofit bank holding company and an incubator of social finance solutions located in Washington, D.C. that promotes social justice by increasing economic access and expanding opportunity for low-wealth communities. CFE has launched City First Bank, City First Homes and City First New Markets Tax Credit Venture Fund. In total, the City First family has financed over 5,000 units of affordable housing, 8,700 school seats, and 4,600 jobs. City First Enterprises is a proud to be supported by a White House Social Innovation Fund and to join a class of the most innovative and effective nonprofits in the nation.
1425 T Street, NW Cooperative
Finding affordable housing is a continuing challenge for all Washington, D.C. residents, but even more so for families with modest incomes. As neighborhoods are reclaimed and new developments constructed, long-term residents are often out-priced and pushed out of communities they love – as was the case at 1425 T Street, NW.
Located in the 14th Street Corridor, this 30 unit, four-story property is in one of the most sought after real estate markets in Washington, D.C. A little while ago the residents were in the unexpected position of finding a way to remain in their homes as the original developer had plans to turn the building into market rate homeownership condominiums. That strategy would not have allowed the tenants to appropriately share in the financial benefits and would have displaced many who were living on a fixed-income.
That’s when CFE stepped in. Working in partnership with the 1425 T Street Cooperative, CFE structured more than $2 million in creative financing, which allowed residents to maintain ownership of the building and complete needed renovations.
Collectively, the City First Family of Companies developed a strategy and provided financing for the existing tenants to continue to live in their homes. CFE connected the residents with legal resources and assisted in the creative funding needed for the cooperative to reclaim control of their building. City First Bank provided the financing required for the cooperative to pay off their existing bank debt and provided additional construction dollars to complete the renovation of the property; and City First Homes executed legally binding permanent affordability agreements that balances wealth building with future affordability.
CFE feels that being a member of HAND is instrumental to achieving their mission. HAND provides meaningful training, peer sharing and networking opportunities throughout the year that keeps the organization updated on the housing industry and puts them in front of the right partnerships. Through HAND’s Internship Grant program they are able to build the capacity of City First through high-quality summer interns. In addition, staff has attended professional development opportunities through the training grants provided by HAND.
HAND is pleased to spotlight City First Enterprises which certainly contributes to our organization’s COLLABORATION, INNOVATION and TRANSFORMATION within the metropolitan area!
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