Catalyzing Community Development Philanthropic and fexible capital for innovative housing solutions: As part of the CASE STUDY SAN FRANCISCO HOUSING ACCELERATOR FUND Racial Equity Commitment, the Firm made a fve-year, $400 million commitment to Supporting community development is an important way to improve community Finding safe, afordable, and stable housing is one of the largest challenges fac- improve household stability and housing afordability for Black, Hispanic and Latino well-being and expand economic opportunity. Housing and homeownership, in par- ing families living in high-cost metropolitan areas like California’s Bay Area. households. We have committed over $200 million through the end of 2022 through ticular, are central pillars of community development because access to a stable, JPMorgan Chase has taken a broad approach to support housing solutions that grants, loans and equity investments. This includes support for organizations afordable home is a leading determinant of income and wealth, health and overall focused on, among other things, eviction diversion models and foreclosure preven- ft the Bay Area’s unique needs, with a focus on production, preservation, protec- quality of life. Yet for many U.S. households, especially Black, Hispanic and Latino tion support to stabilize renters and homeowners, preservation strategies to sup- tion, and innovation throughout the region. One notable efort was a $12 million households, access to afordable housing is increasingly out of reach. Through lend- low-cost loan, with an initial $6 million committed in 2019 and an additional $6 port small landlords, innovations in new construction to lower costs and increase ing, equity investments and philanthropic capital; community partnerships; and million committed in 2022, provided by the Firm’s Impact Finance and Advisory supply, and specialized mortgage products and alternative ownership models to data and policy insights, JPMorgan Chase is helping to build stronger communities, increase homeownership. For example, in 2022, we announced a $15 million com- team to The San Francisco Housing Accelerator Fund (“HAF”). HAF is a nonproft INTRODUCTION with a focus on homeownership and access to afordable housing, which is also a CDFI established in 2017 to address key fnancing gaps and mitigate the housing mitment to fve nonproft organizations working to test and scale innovative models core focus of our $30 billion Racial Equity Commitment. to increase the supply of climate-resilient, energy-efcient afordable homes. afordability crisis in San Francisco and the wider Bay Area. HAF provides prede- ENVIRONMENTAL velopment, acquisition, and rehabilitation loans for small and large sites, includ- Housing reforms policy agenda: The Firm’s housing market afordability policy 2022 HIGHLIGHTS agenda seeks to support regulatory and policy changes aimed at addressing sys- ing single-room occupancy, residential hotel properties, and vacant or underuti- SOCIAL lized land to be developed into afordable housing. As a lender to communi- Homeownership: To help address the homeownership gap between White house- temic bias in housing and encourage more efective models for boosting access to ty-based developers serving LMI populations, HAF has originated more than Feature: Our Racial Equity holds and Black, Hispanic and Latino households, the Firm is expanding access to and supply of afordable homes. JPMorgan Chase continues to engage with industry Commitment $350 million in fnancing across 38 projects, resulting in nearly 1,700 residential afordable homeownership through our home lending products and services, as well partners and regulators to fnd ways to address gaps in the residential appraisal units and 30 commercial spaces being preserved or created, as of June 30, 2022. Inclusive Growth as through innovative homebuyer readiness programs and fnancial education ser- process—including, among other things, lack of appraisal industry diversity and lack Diversity, Equity and Inclusion vices. During 2022, the Firm originated over 11,500 h ome purchase loans for Black, of understanding around the rights to and process for reconsideration of value—that Human Capital Hispanic and Latino households across the economic spectrum, totaling approxi- have led to appraisal bias and equity issues in the valuation process. In 2022, our CASE STUDY MIAMI AFFORDABILITY PROJECT mately $4 billion. For more information on how the Firm is expanding access to Firm committed $3 million to the Appraiser Diversity Initiative, a collaboration JPMorgan Chase is supporting the University of Miami’s Ofce of Civic and Com- GOVERNANCE afordable homeownership through our Community and Afordable Lending eforts, between the Appraisal Institute, National Urban League, Fannie Mae and Freddie munity Engagement to tackle two major challenges facing Miami-Dade County— please see our Racial Equity Commitment section. Mac aimed at attracting diverse entrants into the residential appraisal feld. To date, the Firm’s commitment has resulted in more than 360 scholarships to diverse appli- the lack of afordable housing and efects of climate change. The Firm has pro- APPENDICES Afordable rental housing: The Firm works to advance afordable housing solutions, vided a grant to develop and expand the Miami Afordability Project (“MAP”) tool, cants. In 2022, we also continued our eforts to help protect economically vulnera- bringing our industry expertise, a comprehensive set of fnancial tools and a strat- which is designed to investigate how climate consequences such as sea level rise, ble families from losing their homes in heirs' property partition sales and tax lien egy of combining our business and philanthropic eforts to create greater impact. As sales through our support and advancement of the Uniform Partition of Heirs Prop- fooding and extreme heat are contributing to the displacement of residents in part of our Racial Equity Commitment, we pledged to fnance the creation and pres- historically under-resourced neighborhoods. The MAP tool enables users to visu- erty Act (“UPHPA”). UPHPA laws reform state property laws to provide fractional or ervation of 100,000 afordable rental units over fve years through $14 billion in heirs property owners with basic due process protections. We supported advance- alize how increased fooding, rising seas and more powerful storm surges pro- new loans, equity investments and other eforts. In 2022, through the Afordable jected for the future would impact afordable housing across Miami-Dade—which ment of Heirs Property legislation in California, Utah, Washington, Philadelphia, and Housing Preservation Program, the Firm approved funding for $8.4 billion in loans already has one of the nation’s highest percentage of renters spending more than in the District of Columbia. to incentivize the preservation of approximately 78,000 afordable housing and half of their income on housing. By providing access to this type of information, rental housing units across the U.S. neighborhoods throughout the county such as Opa Locka, Little River and Sweet- water will have more detailed information on projected climate conditions and resilience to climate impacts to support their afordable housing advocacy work. 35