JPMorgan Chase & Co. Deploys Initial Investments from $100 Million Commitment for Detroit’s Economic Recovery
JPMorgan Chase and Liberty Bank announce Home Restoration Program and Downpayment Assistance fund
$20 million in philanthropic investments already being put to work by local partners; Invest Detroit and Capital Impact Partners launch two new community development funds backed by JPMorgan Chase debt capital
DETROIT--(BUSINESS WIRE)--JPMorgan Chase & Co. today announced the launch of the Home Restoration Program with Liberty Bank in Detroit. The program aims to support eligible home buyers with financing for the repair and restoration of residential properties purchased through the Detroit Land Bank Authority’s (DLBA) Neighbors Wanted property auction as well as other priority neighborhoods in the future. With this and other investments, JPMorgan Chase has now put $20 million of its $100 million, 5-year commitment to Detroit, which was announced in May, to work with local community partners supporting economic development, blight reduction, workforce development and small business growth.
“There is a lot of energy and excitement right now about home ownership in Detroit and this program is going to help make that a reality for a lot of people”
Today, many Detroit home buyers who purchase blighted properties do not have access to additional resources or conventional home loans to make essential home improvements. Depressed property values also make it difficult for buyers to access conventional home loans to finance improvements.
JPMorgan Chase, through the JPMorgan Chase Foundation, will provide $5.5 million to Liberty Bank’s nonprofit community development bank, Liberty Foundation, Inc. to help Detroiters purchase and rehab blighted properties. Specifically, JPMorgan Chase’s contribution will create a $5 million loan loss reserve fund for Liberty Bank to provide up to $20 million in new rehab residential mortgage loans. With the reserve fund, Liberty Bank will be able to expand underwriting for rehab loans and provide flexible terms to eligible borrowers who purchase a home through the Neighbors Wanted property auction.
Funding from the JPMorgan Chase Foundation will also create a $300,000 downpayment assistance fund to be managed by Liberty Bank. This will help eligible Detroit residents receive up to $10,000 in downpayment assistance.
“We’re aggressively putting our $100 million commitment to work in Detroit,” said Peter Scher, Executive Vice President and Head of Corporate Responsibility, JPMorgan Chase. “Revitalizing Detroit’s neighborhoods is a critical priority for the city’s recovery, and we believe the Home Restoration Program will support the auction and accelerate the turnaround underway in key neighborhoods.”
“At Liberty Bank we are excited about the revitalization of Detroit,” said Drex Amy, President of the Michigan Region, Liberty Bank and Trust Company. “Along with JPMorgan Chase, we are proud to announce the creation of the Home Restoration Program. Liberty products with their loan loss reserves will enable us to help homebuyers attain a rehab loan and residential mortgage. We are certain this program will help those who want to renovate their homes and obtain mortgages in Detroit contribute towards the growth of this amazing city.”
The Home Restoration Program will initially target the Boston Edison and East English Village neighborhoods, beginning with the Boston Edison auction on July 28, 2014. The program will eventually expand to other neighborhoods in Detroit that are the focus of intensive redevelopment and investment.
Interested Detroit residents can learn more about eligibility by visiting Liberty Bank’s branch in Detroit at 9108 Woodward Avenue or by calling 313-873-3311. Initially, Home Restoration Program borrowers must occupy the home as their primary residence, be a current Detroit resident, participate in housing counseling, demonstrate an ability to repay the loan and comply with all auction rules. To be eligible for downpayment assistance, households must meet these criteria and have an income at or below 120 percent of the area median income (approximately $32,000).
Notable Statements of Support
“There is a lot of energy and excitement right now about home ownership in Detroit and this program is going to help make that a reality for a lot of people,” said Detroit Mayor Mike Duggan. “By making these rehab loans available and accessible to winning bidders, it will greatly increase their ability to follow through on our requirement to have the home fixed up and occupied within six months. Each home that gets renovated through our partnership with Liberty Bank and Trust and JPMorgan Chase will further strengthen our neighborhoods.”
"We applaud JPMorgan Chase and Liberty Bank for creating an innovative product that responds to the unique needs of Detroiters,” said Erica Gerson Ward, Chairman of the Board, DLBA. “The Home Restoration Program is a critical complement to the Detroit Land Bank Authority's ongoing neighborhood revitalization efforts. Detroit residents need a flexible loan like this to finance the home repairs required by the auction.”
“U-SNAP-BAC is excited to partner with Liberty Bank, JPMorgan Chase, and the Detroit Land Bank Authority to ensure Detroit residents can benefit from ongoing neighborhood revitalizations efforts,” said Linda Smith, Executive Director, U-SNAP-BAC, a local HUD-certified housing counselor that will work with home buyers participating in the Home Restoration Program. “The Home Restoration Program will fill a critical gap for Detroit families by providing a unique and flexible financing product for potential homebuyers. By requiring participation in housing counseling, we can work together to ensure that families have the tools needed to prepare for the financial responsibilities that come with homeownership.”
Investing in Detroit by Launching Two New Economic Development Funds
In May 2014, JPMorgan Chase announced it would invest $40 million to seed economic development funds with Invest Detroit and Capital Impact Partners (CIP), two leading nonprofit community development lenders. This investment provides both organizations with flexible, long-term debt capital to fund critical economic development projects in Detroit communities.
With JPMorgan Chase’s investment, Invest Detroit and CIP have launched their funds and are ready to make loans. The $20 million Chase Invest Detroit Fund will provide financing for pre-development and the development and expansion of commercial and industrial businesses. CIP’s $30 million Detroit Neighborhoods Fund – which CIP supplemented with $10 million of its own funds – will provide financing predominantly for multi-family residential properties, mixed-use real estate and grocery stores.
JPMorgan Chase has also made $7.5 million in philanthropic grants to Invest Detroit and CIP to provide operational and programmatic support for their recently established funds.
$20 Million of JPMorgan Chase’s Philanthropic Commitment at Work in Detroit
JPMorgan Chase has been working closely with local Detroit partners to effectively deploy $20 million of its $100 million commitment in just 50 days. Together with the $7.5 million to Invest Detroit and CIP and $5.5 million to the Liberty Foundation, other notable commitments include:
Tackling Blight ($2.8 million)
Funding for Phase 2 of the Motor City Mapping Project to launch the People’s Property Dashboard, a tool for residents to learn about blighted properties and provide information about blighted properties in their neighborhood. Southwest Solutions will acquire and rehab blighted properties from the DLBA. Additionally, support for the DLBA is strengthening its organizational capacity and technology infrastructure to fulfill its role as the central hub for returning Detroit’s vacant, abandoned, and foreclosed residential properties to productive use.
JPMorgan Chase is working with three HUD-certified housing counseling agencies – Central Detroit Christian Community Development Corporation, Southwest Counseling Solutions and U-SNAP- BAC Community Development Corporation – to support the Home Restoration Program and downpayment assistance fund.
Strengthening Workforce Readiness ($2.1 million)
Supporting the Workforce Innovation Network’s development of a databank of needed skills in strategic growth industries, while partnering with the Detroit Employment Solutions Corporation, Focus: HOPE, Goodwill Industries of Greater Detroit, Greening of Detroit and others to provide Detroit residents with technical skills training in information technology, manufacturing, health care, and other sectors.
Funding from JPMorgan Chase’s Summer Jobs initiative to the Detroit Youth Employment Consortium’s Grow Detroit's Young Talent program to provide 1,000 Detroit youth, ages 14-24, with job readiness training and six weeks of paid summer work.
Seeding Future Economic Growth ($1.1 million)
Supporting construction of the M1 rail line and Midtown Detroit’s plan to mitigate the impact of construction of M1 on small businesses along the Woodward Avenue corridor.
Growing Small Businesses ($1 million)
Partnering with Eastern Market, Bizdom, and TechTown Detroit to provide new and existing small businesses with the resources to grow and create jobs.
For more information please follow @Chase and @JPMorgan on Twitter or visit www.jpmorganchase.com/detroit.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About Liberty Bank
Liberty Bank, opened in 1972, is one of America's three largest African-American-owned financial institutions and is a leading mortgage lender and supporter of affordable housing. During the past 40 years under the leadership of President and CEO Alden McDonald Jr., one of the longest-tenured African-American financial executives in the country, Liberty Bank's assets have grown from $2 million to nearly $600 million. Over four decades, Liberty Bank has expanded into seven states. Since 2000, it has expanded its footprint by acquiring banks in Jackson, MS, Kansas City, KS, Kansas City, MO, Detroit, MI and Chicago, IL. Liberty has also expanded its presence to Houston, TX. In 2009, Liberty entered into the Detroit market with the acquisition of Home Federal Savings Bank. Liberty's mission is to provide cost-effective delivery of high quality, innovative, customer-driven financial products and services to diverse markets with a focus on urban areas, providing a full suite of services to minority communities that have traditionally been underserved.