JPMorganChase Commits $750B to Increase Housing Supply
The plan would help build and support 1 million affordable housing units.
JPMorganChase announced plans to deploy $750 billion through 2035 to boost U.S. housing supply and increase homeownership, including financing the construction and preservation of 1 million affordable units. The investment marks a nearly 40 percent increase, up by more than $200 billion from the previous decade.
The plan is part of the institution’s American Dream Initiative, a recently launched plan intended to expand housing, employment and business opportunities for millions of Americans.
As the nation’s largest multifamily and residential bank mortgage lender, JPMorganChase will work with the real estate community, local governments and nonprofits to expand supply and affordability. The firm will also support new public-private partnerships with stakeholders alongside real estate developers and owners to create more housing at all income levels.
The company will expand financing tools including debt, equity and grants to build or preserve supply, in partnership with developers, owners, nonprofits and governments.
Supporting new federal housing legislation
Through local and state collaboration, the firm will work to accelerate and scale solutions such as streamlined zoning, building codes, permitting, expanded tax credits and public-private partnerships. JPMorganChase stated it will be supporting the implementation of the bipartisan 21st Century ROAD to Housing Act, which became law last month. The firm noted it supports provisions in the federal legislation such as the Accelerating Home Building Act, the Housing Supply Expansion Act and the Helping More Families Save Act.
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JPMorganChase also expects to help 500,000 borrowers, including 200,000 first-time homebuyers, purchase homes. Plans call for increasing mortgage lending by more than 40 percent, hiring 850 new Home Lending Advisors, introducing new digital tools and possibly adding new loan product offerings for modular and manufactured homes.
Creating affordable housing solutions for San Francisco
As part of its multi-year American Dream Initiative to provide targeted investments in local communities, the firm also announced yesterday it would provide more than $200 million for affordable housing in San Francisco and the Bay Area. Much of the focus will be on creating more units for middle-income households.
The firm will be providing nearly $200 million in financing for a 342-unit residential building at the 29-acre Power Station mixed-use development in the city’s Dogpatch neighborhood. Developer Fifth Station, formerly known as Associate Capital, is transforming a former power plant into a waterfront community with 2,600 residential units and 1.6 million square feet of commercial space. Construction on the 342-unit building, the second residential structure at the site, is expected to begin in the fall. Designed by Foster + Partners, the project will go up at 151 Humboldt St.
JPMorganChase helped finance the development’s first residential property, the 105-unit Sophie Maxwell Building, with a bond-recycling program. The firm worked with other private sources of funding and public officials to deliver the permanently affordable apartments for middle-income residents at a lower cost per unit.
The firm will also make up to a $15 million equity investment in Fifth Space’s new Essential Housing Fund to build affordable units in the city, including an expected 250 units in the Potrero Hill neighborhood. Ite will also provide $6 million in new grants to the San Francisco Housing Accelerator Fund, Community Vision Capital & Consulting, San Francisco Bay Area Planning and Urban Research Association and The Housing Action Coalition and Housing California.
Over the past five years, JPMorganChase has deployed more than $5.6 billion in financing for affordable housing construction and preservation across the region. The firm’s investments have helped build or preserve nearly 26,000 affordable housing units in the Bay Area.
