The Atlanta Neighborhood Development Partnership, Inc. (ANDP) will develop or renovate 2,000 affordable apartment units and single-family homes by 2025. Costs for the project, which are estimated at $438 million, will be met through a combination of low-cost enterprise capital, competitive Federal program dollars, local and state resources, social impact investing and other bank debt sources.
According to an organizational statement, 82 percent of the funds needed have been identified, including more than $46 million in federal money. The ANDP plans to initiate a philanthropic campaign to generate the balance of the funds needed, but has not yet announced details.
Under the terms of the ANDP’s Closing the Gap: 2K BY 2025 plan, the nonprofit will create or refurbish 250 single-family rental homes, 500 single-family homes targeted for homeownership and 1,250 multifamily apartment units throughout metro Atlanta and south DeKalb County. The effort prioritizes neighborhoods in which low-income residents are most likely to face displacement.
“Research has shown that as many as one-in-two Atlanta households, and one-in-three regional households are housing cost burdened, paying more than 30 percent of monthly household income for housing expenses,” said James L. Rhoden III, Managing Principal of The Macallan Group and ANDP’s board chair. “The neighborhoods and families we serve across the Metro Atlanta region have a critical need for more quality affordable homes; including opportunities for homeownership.”
The program aims to reverse disturbing trends in Black home ownership. Nationally, Black home ownership is one-third less than white home ownership, and is a major contributor to the wealth gap between Blacks and whites, according to the ANDP. At $171,000, median white household wealth is 10 times the level of Black household wealth ($17,000).
“Homeownership is proven to increase educational achievement, healthy outcomes, and civic participation. More importantly, it is the single-largest driver of economic opportunity and generational wealth, especially in low- and moderate-income families,” John O’Callaghan, ANDP president and CEO, said via a statement.
An ANDP study of its homebuyers between 2009 and 2018 showed that those staying in their homes at least five years realized average home ownership wealth gains of nearly $89,000.