JPMorgan Chase Roundtable: Supporting Affordable Housing Development in New York

New York City has seen steady growth in employment and working-age population, but unfortunately, housing supply and wages haven’t kept pace. The 2023 NYC True Cost of Living Report found that half of the working-age households do not earn enough to cover basic needs, and 79 percent are rent-burdened. That means nearly 3 million New Yorkers put more than 30 percent of their paycheck towards housing. This housing insecurity threatens the city’s ability to compete in a global marketplace where affordability is a primary factor in attracting working-age residents.

“It will be difficult to attract talent if no one can afford to live here,” said Sharmi Sobhan. “NYC needs more housing, period. Affordable, middle -income, and market rate.” Angela Kuo further explained that “NYC businesses need to consider benefits that potentially balance the cost of living, especially for those straight out of college.”

JPMorgan Chase (JPM)’s Community Development Banking business finances low- and moderate-income communities and has produced or preserved more than 134,000 affordable rental units across the U.S. in the last decade. While the data around housing insecurity can feel overwhelming, solutions are being devised through innovative partnerships and determined executives looking for fulfilling careers.

Experience, trust and collaboration

Housing requires a more complex structure of policies, public-private partnerships, and an understanding of the economic benefits of affordability to build momentum. “Stable housing, access to food, and income security are basic tenets that afford all individuals the opportunity to grow and thrive,” said Gonzalez. “It is critical that development be approached holistically and thoughtfully to ensure the best outcomes possible for individuals, families, communities, New York, and the world at large.”

Gonzalez expanded on her remarks saying that alliances are “absolutely critical,” and that “the most successful, long-lasting, and impactful developments are the ones that have meaningful partnerships, marshaling existing community assets and expertise. These are also critical for the growth and development of emerging developers, particularly minority and women-owned businesses, allowing for greater participation, insight, and a diversity of perspectives in the industry.” 

This collaboration extends well past public-private lines with partnerships forged fully out of the private sector. Sobhan gave the example of JPMorgan Chase uniting with other banks on equity and debt. Kuo said that “since there is a severe shortage in affordable and middle-income housing, it will not only take banks and government agencies to bridge the gap, but also the support and altruism of private and public companies.”

Experience and trust are the backbone of these partnerships. “After all the transactions we have financed over the years, it’s great to be able to continue to be active through several cycles of the economy. It’s also great to be able to offer institutional memory and be a resource to our industry,” said Silverman.

Kuo added that “having a trusted bank for your cash management needs is more important than ever to make sure that you can operate safely through variable business cycles.”

Optimism lies in the uniqueness of New York housing stakeholders

When challenges arise, there is a lot of pressure on New York to persevere. Strong, effective solutions to the housing shortage may lie in the uniqueness that New York embodies. 

We asked each of the four JPMorgan Chase executives what makes New York affordable housing stakeholders unique, and their responses were telling.

• Gonzalez: Their creativity, passion, grit and willingness to do the work necessary to ensure equitable development or, at minimum, that those with marginalized voices have a seat at the table. 
  Kuo: The developers in this industry are partners and peers, as opposed to “competitors.” They all have a vested interest in building strong communities, and they’ll work harder to make sure that mission comes to fruition.
• Silverman: Having a set of common goals with industry stakeholders has created a unique sense of camaraderie based on mission. No matter how complex or difficult, it always feels worth the effort.
• Sobhan: The NY affordable housing industry is filled with so many smart, hardworking and committed professionals, and it’s a real privilege to be a part of it! 

In her own words

In honor of Women’s History Month, we spoke with each of the four executives to get a better understanding of what it takes to be successful in commercial real estate. Collaboration and a focus on building consensus were common themes. We dug a little deeper with a Q&A offering advice and insights for women in real estate.

What advice would you give your younger self?

• Gonzalez: Know your worth and what you bring as a young professional. Don’t be afraid to advocate for yourself. Own your space.
• Kuo: Don’t sweat the small stuff and be fearless!
• Silverman: Use the resources you have. Social media can be a powerful tool for building your network. My younger self could have networked more.
• Sobhan: Focus on the work at hand and stop worrying so much about the future. 

What does it take to be a successful woman in the industry?

• Gonzalez: Relentless pursuit of excellence and continued challenge, inquisitiveness, and desire to learn.  
• Kuo: It takes a willingness to learn, hard work, and leaning into things that make you uncomfortable to drive forward your business and mission.
• Sobhan: Hard work, asking questions, having confidence, always looking to grow, building connections, and raising your hand. But also knowing when to say no.
• Silverman: Be fully engaged; learn as many aspects of the business as possible.

How has corporate sponsorship helped you advance your career, and how are you working to bring women up the ranks with you? 

• Gonzalez: I am fortunate in my career to have mentors and long-lasting friendships, and I am thankful for every opportunity afforded that allows me to pay it forward to women coming up the ranks. 
• Kuo: I am making sure that the women on my team feel supported and are afforded the same opportunities to excel that I’ve been given by mentors and leaders in the past. I also think it’s important to help women identify what their professional goals are and be very deliberate in driving progress towards those goals.
• Silverman: It’s been interesting to transition from mentee to mentor, and to remember what I needed at an earlier stage of my career, how that was delivered, and what I have learned over time. I’ve had both male and female mentors and would recommend that.
• Sobhan: I’ve been fortunate to have various champions and mentors within the firm over the years. I actively participate in internal and external mentoring activities and always make myself available to junior and newer members of the team and industry.