American multinational investment bank JPMorgan Chase will invest $12 million with five nonprofit organizations in Atlanta and other cities to boost homeownership opportunities for Black, Hispanic and Latino communities.
According to reports, the investment was introduced as a push to bridge the country’s vast housing and racial wealth gap. Atlanta Neighborhood Development Partnership (ANDP) will receive $2.5 million of the investment. The nonprofit plans to use the money to invest in risk-based partnerships with mostly Black-owned local, small builders to develop roughly 500 affordable for-sale homes in neighborhoods that have experienced decades of disinvestment. About half of the homes would be in the city of Atlanta.
The bank’s investment is part of its $30 billion pledge made in 2020 to address systemic racism in banking, such as discriminatory lending practices; $400 million is set aside for affordable housing initiatives for Black, Hispanic and Latino communities.
JPMorgan Chase itself has paid out more than $13 billion in recent years to settle federal lawsuits over predatory mortgages, charging Black and Hispanic people higher rates and fees on mortgage loans than white customers, and racist treatment of African American employees.