EagleBank Invests $5M in D.C. Affordable Housing Initiative
EagleBank has committed $5 million to JBG SMITH’s Washington Housing Initiative Impact Pool, which facilitates financing for the acquisition and development of multifamily affordable housing throughout the D.C. region.
Launched by the REIT in 2018, it has three objectives: to prevent displacement, preserve affordability and increase shared prosperity, all addressed at scale with private capital.
“EagleBank’s investment represents a local institution’s remarkable commitment to making a positive impact in the community in which they operate,” AJ Jackson, JBG SMITH’s executive vice president of social impact investments, told Commercial Observer. “A number of leading national banks have invested in the Impact Pool; Eagle’s investment shows that the Impact Pool is also a good fit for local community banks.”
To date, total commitments to the pool now exceed $110 million.
“Acquiring and preserving existing housing is one of the quickest and least expensive ways to prevent displacement, preserve affordability, and increase shared prosperity,” Jackson said. “When preservation targets high-opportunity neighborhoods, it can also increase racial equity and economic inclusion. Many of the residents at risk of displacement are people of color and nearly half of Black and Hispanic renters in Washington are rent-burdened—spending more than 30 percent of their income on housing.”
Providing affordable housing options in high-quality neighborhoods, then, is one of the best ways to increase access to opportunity.
The Impact Pool made its first investment at the beginning of the year, extending a $15.1 million mezzanine loan to the Alexandria Housing Development Corporation for their acquisition of Parkstone Apartments in Alexandria, Va.
“Now, the pool has successfully completed its tax-exempt bond financing, finalizing its investment in the asset,” Jackson said. “The property was marketed for sale broadly as an opportunity to raise rents given its proximity to National Landing and lack of an affordable housing requirement. Instead, the Impact Pool’s investment in Parkstone preserves three-quarters of the units for residents earning less than $85,000 per year.”
Looking ahead, the Impact Pool is evaluating a pipeline of acquisitions that could preserve approximately 6,000 units of affordable workforce housing across the region.