Banks announce $12.1M in investments with Cape Fear Collective for affordable housing

The investment is part of a broader initiative through Cape Fear Collective Ventures, a social impact investment initiative aimed at raising capital to scale solutions in affordable housing.
Affordable housing in the Wilmington area

WILMINGTON, N.C. (WWAY)  – Live Oak Bank, First National Bank, First Citizens Bank, First Bank and Dogwood State Bank announce a $12.1 million investment with Cape Fear Collective designed to support affordable housing solutions in the Wilmington region.

The investment is part of a broader initiative through Cape Fear Collective Ventures, a social impact investment initiative aimed at raising capital to scale solutions in affordable housing.

In 2021, Live Oak Bank invested $2.5 million to acquire 20 residences in downtown Wilmington and Pender County. The latest investment from Live Oak Bank, First National Bank, the largest subsidiary of F.N.B. Corporation, First Citizens Bank, and First Bank, totaling $11.1m, supported the acquisition of 71 housing units in 66 properties located in or near downtown Wilmington and additional, flexible funding to support renovations on the properties.

Dogwood State Bank invested an additional $500,000 in the Cape Fear Region. Cape Fear Collective created Collective Ventures in 2021 with goals that included attracting $10 million in investments in the first year and boosting the amount of affordable housing in the city.

About 70% of the existing renters in the units receive some type of rental assistance to keep their housing costs at or below 30% of their income, which is the threshold for housing to be considered affordable.

Meaghan Dennison, Interim CEO of Cape Fear Collective stated, “With social impact investing, we’re able to be a competitive buyer in the marketplace and preserve these units as affordable housing. We have an opportunity to take private sector financing methods and apply them to a social mission. There is some real, sustainable magic to that.”

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