South Baltimore Gateway Partnership Launches $3.5 Million Community Development Fund and $35 Million Funding Consortium
The South Baltimore Gateway Partnership (SBGP) is delighted to announce the launch of the $3.5 million Community Development Fund (CDF), a new grant program to support community-led real estate projects within the neighborhoods of the South Baltimore Gateway District. Nonprofit applicants who are selected for grants from the CDF will automatically be connected to the South Baltimore Gateway Funding Consortium, a network of Community Development Financial Institution (CDFI) partners who will seek to provide financing to support the transactions. This will empower qualified applicants to drive equitable development in their communities.
The Board of Directors of SBGP has allocated $3.5 million in funding and staffing support for the first three years of the Community Development Fund. The City of Baltimore, a member of the Funding Consortium, has pledged an additional $1.5 million from the Casino Local Impact Fund (CLIF) program.
Brad Rogers, SBGP’s Executive Director says, “we heard the loud call for equitable development coming from our communities. Neighborhoods have demanded the resources to control their own real estate to prevent gentrification, because they know best what they need and want to see. The Community Development Fund is answering that call, and connecting projects with the capital they need to turn plans into reality.”
“Community-led revitalization is at the core of the work we are doing at DHCD,” said Baltimore City Housing Commissioner Alice Kennedy. “The City’s investment of Casino Local Impact Funds in support of the SBGP Community Development Fund will boost our middle neighborhoods strategy, our work on the reduction of vacant houses, and leverage more resources to support homeowners and promote homeownership.”
Casino revenues managed by SBGP and the City are expected to leverage up to $30 million in additional financing from the CDFI partners who have pledged support for this effort. Other potential sources are being explored. The partner CDFIs include Baltimore Community Lending, Enterprise Community Loan Fund, the CDFI of Enterprise Community Partners, the Neighborhood Impact Investment Fund, and the Reinvestment Fund. Each of the members will independently review and underwrite potential transactions.
“This new Community Development Fund will enhance Baltimore Community Lending’s ability to address community projects that face historic value and funding gaps due to disinvestment. The financial support provided by the CDF, through collaborative efforts, will bridge those gaps, make community-focused real estate projects financially viable, and turn ambitious goals into tangible community assets,” says Sean Russell, Chief Lending Officer of Baltimore Community Lending.
The fund will prioritize real estate projects that support neighborhood priorities. This may range from redeveloping vacant buildings to the construction of larger projects. The CDF will focus on three different types of development activities:
- Projects requiring pre-development funds for activities such as concept design and feasibility planning, or to assist with property acquisition, which in turn will position a project to attract additional
- Projects which are well underway, but which require additional capital to close a final funding gap.
- Supporting grass-roots groups that require funds to assist with strategic acquisitions of properties in their communities.
SBGP, which is funded by casino revenues, has a longstanding commitment to the equitable distribution of its funds, and the new CDF continues this legacy. Funds will only be given to nonprofit organizations, not to for-profit developers. Those recipients will either be nonprofit developers, such as community development corporations, or nonprofits partnering with for-profit partners.
CDF applications will undergo a rigorous review process by the CDF, including an independent review by a third-party consultant. Applicants will need to demonstrate that their projects are both strategically important and economically feasible. The final funding decision will be made by a committee of the SBGP board.
SBGP remains unwavering in its commitment to fostering equitable development opportunities across the District. This new fund, along with the Funding Consortium that it leverages, offers a significant opportunity for positive transformation in South Baltimore, guided by the communities themselves.
For more information about SBGP’s Community Development Fund, including eligibility criteria, FAQs, and application details, please visit the Community Development Fund page.