Cinnaire has announced the first funding round for the Delaware Catalyst Fund, a $20 million fund investing in affordable housing in Delaware communities, will open May 15th. The Catalyst Fund is a partnership between Cinnaire and the Delaware State Housing Authority (DSHA) designed to address vacant property in communities in Delaware disproportionately impacted by the COVID-19 pandemic. Through the fund, both for-profit and non-profit developers can apply for construction financing and subsidy needed to renovate vacant homes or build new homes on vacant land for affordable homeownership.
“The goal of the Catalyst Fund is to create healthier, more vibrant communities by redeveloping or removing vacant and blighted properties to create affordable homeownership opportunities for residents in communities across Delaware,” said Joel Amin, Program Manager. “The Catalyst Fund is focused on expanding activities for real estate developers with roots in local communities and to supporting new and emerging developers, both key components of Cinnaire’s commitment to building equitable neighborhoods on inclusionary growth and redevelopment.”
Vacant and abandoned properties present barriers to economic recovery. In many neighborhoods facing high levels of vacancy, there is also a significant homeownership gap, negatively impacting neighborhood stabilization and growth. The Catalyst Fund promotes neighborhood revitalization and an equitable recovery by providing developers with gap funding to renovate homes, and/or build new homes on vacant land, for sale to homeowners.
The Catalyst Fund is supported through funding provided by the State of Delaware through the American Rescue Plan Act’s (ARPA) State and Local Fiscal Recovery Fund (SLFRF).
“Delaware has never seen such a significant investment in housing. The programs DSHA is creating have never been executed at this scale,” said Eugene Young, Jr., DSHA Executive Director. “We’re thrilled with the progress made so far, and we’re not done yet. The impact of our efforts will allow Delaware to focus on what our housing landscape will look like well past 2026 when the funds expire.”
Cinnaire will offer construction lending to incentivize developers to purchase, renovate, or replace vacant and blighted properties. ARPA funding will also be used to fund a sales gap subsidy as part of construction project financing so that the cost remains affordable to low- and moderate-income homebuyers.
Visit the Catalyst Fund webpage to learn more, obtain an application and view the April 20 informational session video hosted by Cinnaire and DSHA
