Making room for affordable living
There are many ways to support local communities. In New York City, Deutsche Bank supports creative solutions to housing problems such as affordability, space utilization and energy efficiency.
The affordable housing sector in the United States, particularly in large metropolitan cities like New York, is under tremendous pressure to meet rising demand as incomes stagnate and poverty grows.
Since 1994, Deutsche Bank Americas Foundation has been financing “Working Capital”, a program that assists nonprofit community development organizations involved in preserving and building affordable housing in New York City, among other projects.
In July 2012, the Foundation hosted a conference to explore ways to counter the decreasing availability of low-income housing. “Lowering the Cost to Develop and Sustain Affordable Housing” brought together some of the best thinkers and doers from around the country, including architects, policymakers and financers.
The conference was organized with the nonprofit Enterprise Community Partners as part of its yearly “Affordable Housing Design Leadership Institute” event, which aims to improve design practices in the affordable housing arena. Deutsche and Enterprise have been collaborating for more than 18 years.
The conference ended with an announcement that Deutsche, in cooperation with Enterprise, will hold a competition for innovative designs for building cost-efficient housing. In August 2013, Bayside Anchor from Portland, Maine, was declared the main winner of the “Lowering the Cost of Housing Competition”. The project convinced with a multitude of lowering cost approaches and has been awarded US-Dollar 250,000 in low-interest debt capital to aid its construction.
Green community development
Increasingly, Deutsche is identifying opportunities where financing community economic development intersects with the emerging green economy. In June 2012, the bank underscored its commitment to cleaner energy by establishing a US-Dollar 30 million Community Clean Heat Fund in response to the NYC Clean Heat program launched by Mayor Michael Bloomberg. The fund provides building owners in low-income neighborhoods with access to the financing needed to upgrade their heating units.
In 2012, Deutsche also made a US-Dollar 250,000 philanthropic grant to the New York City Energy Efficiency Corporation (NYCEEC) to help the organization facilitate clean heat conversions. The bank has been a pioneer in defining financial products that enable social enterprises like NYCEEC achieve their goals.
The Deutsche Bank Community Development Finance Group
In the United States, the Community Reinvestment Act (CRA) obliges regulated banks to help meet the credit needs of low to moderate income communities. The Community Development Finance Group (CDFG), which makes loans and investments within low- and moderate-income communities, is the center of competence for Deutsche Bank’s global social finance work.
Our commitment goes well beyond the legal requirements and the Federal Reserve Bank has consistently awarded Deutsche Bank with an “outstanding” rating for its CRA performance over the past 20 years.