5 Ways to Embrace Diversity in Affordable Housing Mentorship

In 2024, minority developers in affordable housing have seen increased support through various initiatives aimed at addressing systemic barriers and improving access to capital.

Key efforts include New York City’s $50 million initiative, launched by Mayor Eric Adams, to help Minority Business Enterprises overcome financial barriers and secure construction financing independently as well as KeyBank’s Equitable Path Forward a $3.5 billion nationwide initiative to support minority developers building affordable rental housing in marginalized communities.

Further, ACCESS, a multimillion-dollar initiative created by Community Preservation Corp. provides financial resources, capacity building opportunities and technical assistance to entrepreneurs of color who have historically faced barriers to entry in the real estate development market. Finally, there is Wells Fargo Foundation’s Growing Diverse Housing Developers Program supporting Black and Latino developers across the U.S. by providing increased access to capital and resources.

These large-scale efforts supply capital and mentoring aimed at creating monumental changes in the industry, something desperately needed since, according to the Urban Land Institute, only 5 percent of its members identify as Black or African American. Additionally, according to CREDiversity.com, only about 6 percent of commercial real estate professionals identify as Hispanic or Latino. Significant progress is still needed to achieve greater diversity in the affordable housing development sector.

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As important as these efforts are, at NHPF, we believe structural change begins with much smaller scale mentoring that companies and organizations can perform from within. The NHPF Mentorship program, launched in 2021, has achieved success in fostering professional development, increasing comradery among staff and cross-pollenating ideas, creativity and best practices across the various disciplines and departments at The NHP Foundation. The program has nurtured internal talent across the spectrum as they pursue various roles throughout our organization.

Here is some of what we have learned about successful mentoring that embraces diversity:

1. Cultural competency and sensitivity

Develop an understanding and appreciation of the unique cultural backgrounds, experiences and challenges faced by your diverse employee population. This fosters a supportive and respectful mentoring relationship, ensuring that mentors can effectively address the specific needs and concerns of their mentees.

2. Tailored support and guidance

Recognize that certain barriers faced by people of color in affordable housing can be different and more complex. Offer personalized advice and resources that address these specific challenges, such as navigating systemic racism, accessing funding opportunities or dealing with discrimination. The LISC NYC Developers of Color Training Program addresses this and connects MBE firms to training, resources and the networks needed to expand their businesses.

3. Building trust and open communication

Cultivate organic mentoring relationships and establish a foundation of trust by being open, honest and consistent. As a mentor, share your own personal stories. Encourage mentees to share their experiences and concerns without fear of judgment. Active listening and empathy are crucial in creating a safe space where mentees feel valued and understood.

4. Networking and opportunities

Help mentees build a strong professional network by connecting them with industry contacts, organizations and resources. Encourage participation in relevant conferences, workshops and forums. The Diversity in Commercial Real Estate Conference is an annual event where diverse entrepreneurs and professionals come together to learn about commercial real estate, recruit, connect, exchange ideas, extend opportunities and network. Providing access to these opportunities can help mentees advance their careers and gain valuable insights and support.

5. Encouragement and empowerment

Celebrate successes, provide constructive feedback and encourage mentees to take on new challenges. Mentors should inspire confidence and motivate mentees to pursue their goals and aspirations, reinforcing their potential to make a significant impact in the affordable housing sector.

In thinking about implementing a strong mentorship program, keep in mind what Oprah Winfrey offers up on the subject, “A mentor is someone who allows you to see the hope inside yourself.”

Robert Jefferson is senior development director, NHPF.