The Wells Fargo Foundation has announced a $40 million initiative to expand the growth and success of real estate developers of color, including Black- and Latinx-owned firms.

The Growing Diverse Housing Developers initiative will work with community development financial institutions (CDFIs), to increase the supply of homes that are affordable across the country. The initiative includes $30 million in support of a collaboration between Capital Impact Partners, Low Income Investment Fund, and Reinvestment Fund for a four-year program that will provide a cohort of housing developers based out of California, Georgia, Texas, and the Baltimore, New York City, Philadelphia, and Washington, D.C., metropolitan areas with access to capital and resources to advance their development pipelines and grow their business. In addition, a $10 million commitment to Raza Development Fund has launched the J. Tommy Espinoza Growing Diverse Housing Developers Fellowship, a four-year professional development program for Latinx- and Black-led real estate firms. Fellows will receive access to capital and mentoring, as well as quarterly learning sessions.

“We want to increase racial equity in real estate development, ultimately creating a more inclusive housing ecosystem,” said Bill Daley, vice chairman of public affairs at Wells Fargo. “One stark reality is that people of color are significantly underfunded and underrepresented in the real estate industry. Through Growing Diverse Housing Developers, we can help strengthen diverse housing developers, enabling them to grow their businesses, and at the same time, offer communities more affordable options for renters and homeowners.”

(Photo credit: Getty Images/Michele Pevide)