FHLBank Chicago Awards $3 Million for Diverse Developer Initiative to Empower Emerging Leaders in Affordable Housing

To grow the diverse real estate developer talent pipeline in Illinois and Wisconsin, the Federal Home Loan Bank of Chicago (FHLBank Chicago) has awarded over $3 million through its 2024 Community First^® Diverse Developer Initiative to support 62 fellowships and internships across 14 organizations. This funding brings FHLBank Chicago's overall commitment for the three-year program to $6.4 million to support new talent in affordable housing who provide essential community knowledge and valued perspectives.

"By investing in programs like the Diverse Developer Initiative, we are building a strong talent pipeline of housing leaders across Illinois and Wisconsin," said Katie Naftzger, Senior Vice President, Community Investment Officer, FHLBank Chicago. "These leaders are essential in addressing the challenges faced by underrepresented populations in our communities."

The importance of diverse developers in the housing industry cannot be overstated. According to research from the Urban Institute, developing enough new and rehabilitated housing units to meet the country's affordability crisis demands participation by all housing developers.

"When diverse perspectives are integrated into housing development, we see innovative solutions that resonate with the community," said Jorge González-Hermoso, research associate, Urban Institute. "In recent research, examining housing developer trends in Chicago, we found that only 17 percent of large multifamily developers are led by people of color. This is concerning when we know that empowering diverse developers enriches the housing landscape and fosters equitable growth in our neighborhoods."

One recipient of a 2024 Diverse Developer Initiative grant is Eminent Development Corporation, based in Madison, Wisconsin. In partnership with FHLBank Chicago member Lake Ridge Bank, they will use $250,000 in grant funding to support internships and fellowships aimed at providing real-world experience in areas like tax credit applications, site acquisition, and project budgeting, equipping participants with the skills needed to succeed in the industry.

"These funds allow us to provide meaningful opportunities for future developers," said Julian Walters, President of Eminent Development Corporation. "We are committed to creating pathways for diverse talent to enter and thrive in the affordable housing sector."

Photo caption: Cedric D. Thurman, EVP, Chief Diversity Officer at FHLBank Chicago (left), and Katie Naftzger, SVP, Community Investment Officer at FHLBank Chicago (right), present Julian Walters, President of Eminent Development Corporation (center), with a check at the Diverse Developer Initiative Awards Reception in Chicago.

The Community First^® Diverse Developer Initiative was launched in 2022 as a three-year commitment to support the various needs of diverse developers in affordable housing. The program's creation was driven by FHLBank Chicago's Community Investment Advisory Council, a group of industry leaders in Illinois and Wisconsin that informs FHLBank Chicago's strategy for affordable housing and community lending. View the full list of 2024 Diverse Developer Initiative grant awardees below.