BIRMINGHAM, Alabama–(BUSINESS WIRE)–The Regions Foundation, a non-profit organization funded primarily by Regions Bank, on Thursday officially announced a $5 million mission-related investment (MRI) in Center Creek Capital Group, an organization that actively address affordable housing needs in the Southeast.
“Connecting people to an affordable place to call home is one of the most important and deeply personal ways an organization can make a difference in the lives of others,” said Leroy Abrahams, Regions Foundation president and lead Regions Bank Community Affairs. . “Cities are growing and thriving in the Southeast, but for our communities to truly succeed, we need to make sure everyone has the opportunity to be a part of 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.
The Center Creek approach significantly expands high-quality affordable housing options for traditionally underserved low- to middle-income residents. The company is revitalizing existing housing stock in metropolitan areas including Birmingham, Atlanta, Tampa and Jacksonville. Center Creek acquires single-family properties that have been neglected or are in need of major repairs, then performs extensive renovations to create comfortable, energy-efficient homes. The homes include high-speed internet access, helping to bridge the digital divide between those who are connected to cutting-edge technology and those who are not.
Center Creek is able to accomplish its work with funding from various investors. With the $5 million from the Regions Foundation being in the form of a mission-related investment, the foundation is able to allocate funds in a manner designed to produce both community benefit and financial return. in support of the ongoing work of the foundation.
“By investing in our fund with a mission, the Regions Foundation uses its capital in creative ways, which will lead to the acquisition and rehabilitation of nearly 100 affordable housing units – and in the end, the Foundation will get its money back, which it can then redeploy to other community development projects,” said Dan Magder, managing partner of Center Creek Capital Group. “We are excited to be working with the Regions Foundation to expand our mission of to provide quality affordable housing and our specialty resident programs to tenants 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 matched savings program. The goal is to provide tenants with tools and opportunities to become eligible to purchase the homes they rent. Center Creek’s resident programs promote greater racial equity and economic inclusion by enabling more people to build generational wealth, own their own homes, and achieve additional financial goals.
“The Center Creek Savings Matching Program not only helps build wealth, it provides valuable support throughout the process of setting and achieving individual financial goals,” said Marta Self, Executive Director of the Regions Foundation. “Residents who make 12 consecutive deposits into their savings account receive two-for-one savings of up to $2,500, which helps build a down payment or financing that can act as a financial safety net. »
The $5 million investment related to the Regions Foundation’s mission directly complements the foundation’s focus on creating more inclusive prosperity. The investment also represents a significant portion of the $30 million capital secured by Center Creek for the first closing of its affordable single-family rental fund called Center Creek Housing Fund III. The fund aims to raise $150 million in capital to support other affordable housing opportunities over the next year.
The Regions Foundation’s $5 million investment announcement took place at a newly renovated home in Fairfield, Alabama, just west of Birmingham. Visitors saw how an existing home was transformed with a renovation that will create a welcoming environment for its future residents. It’s an environment that is recreated time and time again by Center Creek in the Birmingham area and beyond.
“I often call the Birmingham Metropolitan area a ‘Brother’s Keepers’ community because the people here are bound together by a true spirit of generosity and teamwork,” said Alan Register, Birmingham Market Manager for Regions. Bank. “That same generosity and teamwork is behind this collaboration between our colleagues at the Regions Foundation and the team at Center Creek Capital Group. This is a community partnership that will benefit individuals and families across the Southeast, and we’re excited to see more homes come online – and more people impacted – as more organizations unite their strengths to support this initiative.
About the Regions Foundation
The Regions Foundation supports community investments that have a positive impact on the communities served by Regions Bank. The Foundation engages in a grant-making program focused on priorities such as economic and community development; workforce education and preparation; and financial well-being. The Foundation is a 501(c)(3) non-profit corporation funded primarily by contributions from Regions Bank.
About the Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $164 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of retail 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 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member of the FDIC. Additional information about Regions and its full line of products and services is available at www.regions.com.
About Center Creek Capital Group
Center Creek is a mission-driven investment and development company. Center Creek Housing Funds use a market-driven approach to bring new capital to low/moderate income communities, improve housing stock, and increase the availability of affordable housing. Center Creek offers resident services such as its Pathway to Homeownership and Internet Connections programs which provide financial literacy training, credit counseling, savings matching, and broadband Internet access to its residents. Center Creek aims to provide investors with market-rate financial returns and real social impact to its residents by promoting affordable housing, racial equity and economic inclusion.