BIRMINGHAM, Alabama – (BUSINESS CHP) – The Regions Foundation, a non-profit organization funded primarily by Regionals Bank, on Thursday officially announced a $ 5 million mission-related investment (MRI) in Center Creek Capital Group, an organization that is actively addressing the needs of affordable housing in the Southeast.
“Connecting people with an affordable place to call home is one of the most important and deeply personal ways an organization can change the lives of others,” said Leroy Abrahams, president of the Regional Foundation and head of the bank. on Community affairs for the regions. . “Cities are growing and thriving in the southeast, but for our communities to succeed, we need to ensure that everyone has the opportunity to participate in that success. The Regions Foundation is proud to support Center Creek Capital Group as it takes an innovative approach to creating more affordable housing while strengthening the quality of life in the communities we serve.
Center Creek’s approach significantly expands the possibilities for high-quality affordable housing for traditionally underserved low- and moderate-income residents. The company is reviving existing housing in subway areas, including Birmingham, Atlanta, Tampa and Jacksonville. Center Creek acquires single-family properties that have been neglected or in need of major renovations and then makes major renovations to create comfortable and energy-efficient homes. Homes include broadband Internet access, which helps bridge the digital divide between those who are advanced and those who are not.
Center Creek is able to do its job thanks to funding from various investors. Because the $ 5 million from the Foundation of the Regions is in the form of a mission-related investment, the foundation is able to allocate funding in a way that is designed to generate both community benefits and financial returns to support the foundation’s ongoing work. .
Through a mission-oriented investment in our fund, the Regions Foundation uses its capital in a creative way that will stimulate the acquisition and rehabilitation of nearly 100 available units – and the foundation will eventually get its money back, which can then be reallocate to other community development projects, ”said Dan Magder, managing partner of Center Creek Capital Group. “We are excited to work with the Foundation of the Regions to expand our mission to provide quality, affordable housing and our specialized tenant residency programs in Birmingham and other cities in the southeastern United States.”
Tenants have the opportunity to participate in Center Creek’s Pathway to Homeownership program, which offers financial wellness initiatives, credit counseling and a savings program. The focus is to provide tenants with the tools and opportunities to meet the conditions for buying the homes they rent. Center Creek’s residency programs promote greater racial equality and economic inclusion by connecting more people with opportunities to build generations’ wealth, own a home, and achieve additional financial goals.
“The Creek Center’s savings program not only helps build wealth, but also provides valuable support during the process of setting and achieving individual financial goals,” said Martha Self, executive director of the Regions Foundation. “Residents who make 12 consecutive deposits in their savings account receive a two-to-one match in savings of up to $ 2,500, which helps build an initial contribution or financing that can serve as a financial security network.
The $ 5 million investment related to the Foundation of the Regions’ mission directly complements the foundation’s focus on creating more inclusive prosperity. The investment also represents a significant portion of the $ 30 million of capital provided by Center Creek for the first closure of its affordable single-family rental fund, called Center Creek Housing Fund III. The fund aims to reach $ 150 million in capital to support additional affordable housing opportunities next year.
The announcement of the Regional Foundation’s $ 5 million investment took place in a recently renovated house in Fairfield, Alabama, west of Birmingham. Visitors saw how an existing home was transformed through renovations that would create a welcoming environment for its future occupants. This is an environment that is recreated over and over again by Center Creek in the Birmingham area and beyond.
“I often call the Birmingham Underground Brotherhood community because the people here are connected by a real spirit of generosity and teamwork,” Alan Register, Birmingham’s chief market officer, told Regionals Bank. “The same generosity and teamwork is behind this collaboration between our colleagues from the Regionals Foundation and the Center Creek Capital Group team. It is a community partnership that will benefit people and families across the South East, and we are excited to see more houses appear online – and more people affected – as additional organizations join forces to support this initiative.
For the Regions Foundation.
The Regions Foundation supports community investments that have a positive impact on the communities served by the Regional Bank. The Foundation participates in a grant program focused on priorities, including economic and community development; education and readiness of the workforce; and financial well-being. The Foundation is a non-profit corporation 501 (c) (3), financed mainly by contributions from Regions Bank.
About the regional financial corporation
Regionals Financial Corporation (NYSE: RF), with assets of $ 164 billion, is a member of the S&P 500 index and is one of the largest providers of a full range of services in the country of consumer and commercial banking, wealth management and mortgage products, and services. Regions serves customers in the South, Midwest and Texas, and through its subsidiary Regions Bank operates approximately 1,300 bank offices and more than 2,000 ATMs. Regional Bank is a lender for equal housing and a member of the FDIC. Additional information about Regions and the full range of products and services can be found at www.regions.com.
For Center Creek Capital Group
Center Creek is a mission-oriented investment and development company. Center Creek’s housing stock uses a market-oriented approach to raise new capital in low- / moderate-income communities, improve housing, and expand affordable housing. Center Creek offers resident services such as its Pathway to Homeownership and Internet Connections programs, which provide residents with financial literacy, credit counseling, savings matching and broadband. Center Creek aims to provide a market financial return to investors and a real social impact for its residents by promoting affordable housing, racial justice and economic inclusion.