JPMorgan Chase & Co. Deploys Initial Investments from $100 Million
Commitment for Detroit’s Economic Recovery
JPMorgan Chase and Liberty Bank announce Home Restoration Program and
Downpayment Assistance fund
$20 million in philanthropic investments already being put to work by local
partners; Invest Detroit and Capital Impact Partners launch two new community
development funds backed by JPMorgan Chase debt capital
DETROIT -- July 10, 2014
JPMorgan Chase & Co. today announced the launch of the Home Restoration
Program with Liberty Bank in Detroit. The program aims to support eligible
home buyers with financing for the repair and restoration of residential
properties purchased through the Detroit Land Bank Authority’s (DLBA)
Neighbors Wanted property auction as well as other priority neighborhoods in
the future. With this and other investments, JPMorgan Chase has now put $20
million of its $100 million, 5-year commitment to Detroit, which was announced
in May, to work with local community partners supporting economic development,
blight reduction, workforce development and small business growth.
Today, many Detroit home buyers who purchase blighted properties do not have
access to additional resources or conventional home loans to make essential
home improvements. Depressed property values also make it difficult for buyers
to access conventional home loans to finance improvements.
JPMorgan Chase, through the JPMorgan Chase Foundation, will provide $5.5
million to Liberty Bank’s nonprofit community development bank, Liberty
Foundation, Inc. to help Detroiters purchase and rehab blighted properties.
Specifically, JPMorgan Chase’s contribution will create a $5 million loan loss
reserve fund for Liberty Bank to provide up to $20 million in new rehab
residential mortgage loans. With the reserve fund, Liberty Bank will be able
to expand underwriting for rehab loans and provide flexible terms to eligible
borrowers who purchase a home through the Neighbors Wanted property auction.
Funding from the JPMorgan Chase Foundation will also create a $300,000
downpayment assistance fund to be managed by Liberty Bank. This will help
eligible Detroit residents receive up to $10,000 in downpayment assistance.
“We’re aggressively putting our $100 million commitment to work in Detroit,”
said Peter Scher, Executive Vice President and Head of Corporate
Responsibility, JPMorgan Chase. “Revitalizing Detroit’s neighborhoods is a
critical priority for the city’s recovery, and we believe the Home Restoration
Program will support the auction and accelerate the turnaround underway in key
“At Liberty Bank we are excited about the revitalization of Detroit,” said
Drex Amy, President of the Michigan Region, Liberty Bank and Trust
Company.“Along with JPMorgan Chase, we are proud to announce the creation of
the Home Restoration Program.Liberty products with their loan loss reserves
will enable us to help homebuyers attain a rehab loan and residential
mortgage. We are certain this program will help those who want to renovate
their homes and obtain mortgages in Detroit contribute towards the growth of
this amazing city.”
The Home Restoration Program will initially target the Boston Edison and East
English Village neighborhoods, beginning with the Boston Edison auction on
July 28, 2014. The program will eventually expand to other neighborhoods in
Detroit that are the focus of intensive redevelopment and investment.
Interested Detroit residents can learn more about eligibility by visiting
Liberty Bank’s branch in Detroit at 9108 Woodward Avenue or by calling
313-873-3311. Initially, Home Restoration Program borrowers must occupy the
home as their primary residence, be a current Detroit resident, participate in
housing counseling, demonstrate an ability to repay the loan and comply with
all auction rules. To be eligible for downpayment assistance, households must
meet these criteria and have an income at or below 120 percent of the area
median income (approximately $32,000).
Notable Statements of Support
“There is a lot of energy and excitement right now about home ownership in
Detroit and this program is going to help make that a reality for a lot of
people,” said Detroit Mayor Mike Duggan. “By making these rehab loans
available and accessibleto winning bidders, it will greatly increase their
ability to follow through on our requirement to have the home fixed up and
occupied within six months. Each home that gets renovated through our
partnership with Liberty Bank and Trust and JPMorgan Chase will further
strengthen our neighborhoods.”
"We applaud JPMorgan Chase and Liberty Bank for creating an innovative product
that responds to the unique needs of Detroiters,” said Erica Gerson Ward,
Chairman of the Board, DLBA. “The Home Restoration Program is a critical
complement to the Detroit Land Bank Authority's ongoing neighborhood
revitalization efforts. Detroit residents need a flexible loan like this to
finance the home repairs required by the auction.”
“U-SNAP-BAC is excited to partner with Liberty Bank, JPMorgan Chase, and the
Detroit Land Bank Authority to ensure Detroit residents can benefit from
ongoing neighborhood revitalizations efforts,” said Linda Smith, Executive
Director, U-SNAP-BAC, a local HUD-certified housing counselor that will work
with home buyers participating in the Home Restoration Program. “The Home
Restoration Program will fill a critical gap for Detroit families by providing
a unique and flexible financing product for potential homebuyers. By requiring
participation in housing counseling, we can work together to ensure that
families have the tools needed to prepare for the financial responsibilities
that come with homeownership.”
Investing in Detroit by Launching Two New Economic Development Funds
In May 2014, JPMorgan Chase announced it would invest $40 million to seed
economic development funds with Invest Detroit and Capital Impact Partners
(CIP), two leading nonprofit community development lenders. This investment
provides both organizations with flexible, long-term debt capital to fund
critical economic development projects in Detroit communities.
With JPMorgan Chase’s investment, Invest Detroit and CIP have launched their
funds and are ready to make loans. The $20 million Chase Invest Detroit Fund
will provide financing for pre-development and the development and expansion
of commercial and industrial businesses. CIP’s $30 million Detroit
Neighborhoods Fund – which CIP supplemented with $10 million of its own funds
– will provide financing predominantly for multi-family residential
properties, mixed-use real estate and grocery stores.
JPMorgan Chase has also made $7.5 million in philanthropic grants to Invest
Detroit and CIP to provide operational and programmatic support for their
recently established funds.
$20 Million of JPMorgan Chase’s Philanthropic Commitment at Work in Detroit
JPMorgan Chase has been working closely with local Detroit partners to
effectively deploy $20 million of its $100 million commitment in just 50 days.
Together with the $7.5 million to Invest Detroit and CIP and $5.5 million to
the Liberty Foundation, other notable commitments include:
*Tackling Blight ($2.8 million)
*Funding for Phase 2 of the Motor City Mapping Project to launch the
People’s Property Dashboard, a tool for residents to learn about
blighted properties and provide information about blighted properties
in their neighborhood.
*Southwest Solutions will acquire and rehab blighted properties from
the DLBA. Additionally, support for the DLBA is strengthening its
organizational capacity and technology infrastructure to fulfill its
role as the central hub for returning Detroit’s vacant, abandoned,
and foreclosed residential properties to productive use.
*JPMorgan Chase is working with three HUD-certified housing counseling
agencies – Central Detroit Christian Community Development
Corporation, Southwest Counseling Solutions and U-SNAP- BAC Community
Development Corporation – to support the Home Restoration Program and
downpayment assistance fund.
*Strengthening Workforce Readiness ($2.1 million)
*Supporting the Workforce Innovation Network’s development of a
databank of needed skills in strategic growth industries, while
partnering with the Detroit Employment Solutions Corporation, Focus:
HOPE, Goodwill Industries of Greater Detroit, Greening of Detroit and
others to provide Detroit residents with technical skills training in
information technology, manufacturing, health care, and other
*Funding from JPMorgan Chase’s Summer Jobs initiative to the Detroit
Youth Employment Consortium’s Grow Detroit's Young Talent program to
provide 1,000 Detroit youth, ages 14-24, with job readiness training
and six weeks of paid summer work.
*Seeding Future Economic Growth ($1.1 million)
*Supporting construction of the M1 rail line and Midtown Detroit’s
plan to mitigate the impact of construction of M1 on small businesses
along the Woodward Avenue corridor.
*Growing Small Businesses ($1 million)
*Partnering with Eastern Market, Bizdom, and TechTown Detroit to
provide new and existing small businesses with the resources to grow
and create jobs.
For more information please follow @Chase and @JPMorgan on Twitter or visit
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm
with assets of $2.5trillion and operations worldwide. The Firm is a leader in
investment banking, financial services for consumers and small businesses,
commercial banking, financial transaction processing, asset management and
private equity. A component of the Dow Jones Industrial Average, JPMorgan
Chase & Co. serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government clients under
its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is
available at www.jpmorganchase.com.
About Liberty Bank
Liberty Bank, opened in 1972, is one of America's three largest
African-American-owned financial institutions and is a leading mortgage lender
and supporter of affordable housing. During the past 40 years under the
leadership of President and CEO Alden McDonald Jr., one of the longest-tenured
African-American financial executives in the country, Liberty Bank's assets
have grown from $2 million to nearly $600 million. Over four decades, Liberty
Bank has expanded into seven states. Since 2000, it has expanded its footprint
by acquiring banks in Jackson, MS, Kansas City, KS, Kansas City, MO, Detroit,
MI and Chicago, IL. Liberty has also expanded its presence to Houston, TX. In
2009, Liberty entered into the Detroit market with the acquisition of Home
Federal Savings Bank. Liberty's mission is to provide cost-effective delivery
of high quality, innovative, customer-driven financial products and services
to diverse markets with a focus on urban areas, providing a full suite of
services to minority communities that have traditionally been underserved.
JPMorgan Chase & Co.
Steve O’Halloran, 302-282-5699
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