A new loan fund backed by New York City will be launched later this year to help traditionally disadvantaged developers build affordable housing in Philadelphia.

The Philadelphia Accelerator Fund aims to support minority and female-owned developers and non-profit developers to create affordable housing and other projects. PAF website. The fund plans to start investing this summer.

The city funded PAF with an investment of approximately 11 million U.S. dollars to start the project. The fund aims to avoid obstacles encountered by minority real estate developers when applying for bank loans. WHYY report.

The organization’s goal is to raise another $30 million by this fall, after which they can begin to provide loans and investment opportunities. They hope to raise more than $100 million in five years and produce 6,000 affordable housing units.

Greg Heller, PAF director and vice president of community investment for the Philadelphia Housing Development Corporation, said the fund is based on A similar plan in San Francisco Provide loans to non-profit affordable housing developers so that they can compete with market rate builders.

Heller said that doing a similar idea in Philadelphia was when I heard that local developers encountered difficulties in obtaining funds from banks and traditional financing channels. Officials came up with this idea in the process of creating the subject. 2018 Home Equity Action Plan.

These projects do not have to be used only for affordable housing, but only for customers whose prices are below the market. For housing projects for sale, multi-family rents and subsidized housing can all apply.

In order to qualify for funding, the project can cater to people whose income does not exceed 120% of the median income in the region, totaling $73,000 per year.