LIIF has provided catalytic capital to support SERP, the City of Raleigh and Wake County in their first partnership to construct 25 affordable rental homes across nine city-owned parcels, situated in residential neighborhoods within walking distance of Raleigh’s Downtown Central Business District.
The SERP Small-Scale Scattered Site Project will include a mix of single-family homes, duplexes and accessory dwelling units (ADUs) designed for families earning between 30% and 80% of the area median income (AMI).
LIIF supported the project with a $2.3 million construction-to-permanent loan, complemented by $750,000 from the federal Capital Magnet Fund (CMF). CMF plays a critical role in making projects like this possible. While traditional banks typically lend up to 80% of a project’s value, leaving developers to find the remaining 20% elsewhere, CMF enables community development financial institutions (CDFIs), like LIIF, to fill that gap and finance a greater share of acquisition and development costs.
SERP serves as the community quarterback for Raleigh/Wake County’s first Purpose Built Community. Part of a national network of more than 25 communities, Purpose Built Communities is a place-based initiative that fosters pathways to prosperity by improving outcomes across four pillars: real estate and housing; cradle-to-career education; community wellness; and economic vitality. All four of these pillars are grounded in deep community engagement and strong partnerships.
What’s happening in Southeast Raleigh shows how collaboration and innovation can shape a more inclusive future for cities everywhere.
This process has taught us so much — about ourselves, our partners and the courage it takes to be bold. Thanks to the support of LIIF, the City of Raleigh, Wake County and Purpose Built Communities, we persevered and demonstrated the power of partnerships and our collective commitment to achieving community success.
Southeast Raleigh Promise (SERP) CEO Yvette Holmes