Impact investment will offer low-cost loans to developers of color
Seattle, WA —Seattle Foundation is pleased to announce a significant $1 million impact investment in HomeSight, a nonprofit organization dedicated to fostering homeownership for low- and middle-income families and supporting small business community anchors. This investment will aid HomeSight’s Field Order 15 Fund, a critical lending program developed in partnership with Black Home Initiative aimed at helping Black home developers build affordable homes for sale.
The Field Order 15 Fund, launched on January 16, 2024, is designed to lower historic barriers for Black home developers to access pre-development financing, a crucial step in creating new affordable housing. The fund provides essential support for land surveying, legal counsel, and acquiring land, as well as low-interest loans for pre-development activities, such as hiring architects and engineers to create building plans and apply for permits.
“Homeownership is the primary way families in the US build generational wealth and achieve financial security. Unfortunately, due to our country’s long history of discriminatory housing practices, housing stability has been hard to come by for many Black, Indigenous, and People of Color households,” said Seattle Foundation Chief Financial Officer Larry Buycks. “Our investment in HomeSight’s Field Order 15 Fund supports black developers and aligns resources with action to help close the homeownership gap in our region.”
Both Seattle Foundation and HomeSight are part of the Black Home Initiative (BHI), a regional network of over 100 partners focused on increasing homeownership among BIPOC households and fostering greater wealth in the Black community. BHI’s initial priority is to create opportunities for 1,500 new low- and moderate-income Black households to own a home in South Seattle, South King County, and North Pierce County by 2027.
“Seattle Foundation’s $1 million impact investment will be pivotal in offering low-cost loans to developers of color through HomeSight’s Field Order 15 Fund,” said Darryl Smith, Executive Director of HomeSight. “This support will enable us to make and manage multiple loans, leading to the construction of new townhomes and multi-family condos or cooperatives, directly addressing the affordable housing shortage.”
Impact investing, as demonstrated by this initiative, is structured to generate financial and measurable social or environmental returns. By making this investment, Seattle Foundation not only advances its vision of creating a region of shared prosperity, belonging, and justice but also sets an example for other philanthropists and organizations to follow.
Seattle Foundation invites others to co-participate in this impactful initiative by August 1, 2024, helping to further support Black homeownership and contribute to long-term community benefits.
For more information, please contact Philanthropic Advisor Taylor Sharp at [email protected].
The History Behind the Name Field Order 15:
General William Tecumseh Sherman issued Special Field Order 15 on January 16, 1865. The order confiscated 400,000 acres along his famous march to the sea, which would be re-distributed to the newly freed enslaved people, providing each family with “40 acres and a mule.”
President Lincoln approved Special Field Order 15, but after his assassination his successor Andrew Johnson rescinded it, returning the land to former enslavers. Black people never received “40 acres and a mule,” or any restitution for their enslavement. The following ten decades of explicitly racist policies prevented Black people from staking a claim in an economically secure future.
The Field Order 15 Fund aims to fulfill this abandoned equity goal.
About HomeSight:
Since 1990, HomeSight, a nonprofit Community Development Financial Institution (CDFI) and Community Development Corporation (CDC), has worked to preserve and promote economically and culturally diverse communities through affordable homeownership, business development and community advocacy. HomeSight believes communities can only be strong, vibrant, and equitable if homeownership is attainable, cultural anchors can thrive in place, small businesses have access to the knowledge and tools to excel in changing markets, and prosperity is built and shared among all members of each unique community.
Learn more about HomeSight and Field Order 15 at www.homesightwa.org/fieldorder15/
About Seattle Foundation:
Seattle Foundation ignites powerful, rewarding philanthropy to make Greater Seattle a stronger, more vibrant community for all. As a community foundation, it works to advance equity, shared prosperity, and belonging throughout the region while strengthening the impact of the philanthropists it serves. Founded in 1946 and with more than $1.3 billion in assets, the Foundation pursues its mission with a combination of deep community insight, civic leadership, philanthropic advising, and judicious financial stewardship.
Learn more at www.seattlefoundation.org
About Black Home Initiative
Black Home Initiative (BHI) is a multi-year, regional effort from Civic Commons that targets the racial inequities at the core of the housing ecosystem to increase homeownership among BIPOC (Black, Indigenous, and People of Color) households. BHI’s initial emphasis is to create opportunity for 1,500 new low- and moderate-income Black households to own a home in South Seattle, South King County, and North Pierce County within the next five years. The initiative convenes cross-sector partners who collaboratively act on local priorities ranging from homebuyer preparation to construction financing to policy reform. By centering those most affected by the work, BHI is creating a foundation for long-term systems change. The ultimate impact we seek is racial equity for everyone and an increase in intergenerational household wealth.
Learn more at www.blackhomeinitiative.org.