How $1.6 billion can unlock economic opportunity across Washington, D.C.
By Tim Sloan, CEO, Wells Fargo and John Taylor, President, National Community Reinvestment Coalition
The story of Washington, D.C. can be described as a tale of two cities. Much of the District is booming. Cranes are visible across the city, a visual reminder that development is a daily activity, revitalizing long-distressed communities and creating newly-vibrant neighborhoods.
However, the picture drawn in Wards 7 and 8 is somewhat different. Those neighborhoods, predominantly people of color, are under intense pressure from the city’s construction boom. It is imperative that we manage the gentrification and displacement of longtime residents to ensure their ability to remain in their neighborhoods.
We at Wells Fargo and the National Community Reinvestment Coalition know that strong, stable neighborhoods are the lifeblood of every healthy community, and fostering them is a responsibility we all share. That simple belief is what lies behind a new community commitment our two organizations, working with dozens of local leaders, are making to our nation’s capital.
With the backing of $1.6 billion in lending and philanthropy over five years from Wells Fargo, together, we are prepared to address the most significant challenges facing the District with a focus on under-resourced communities. Our goals are to elevate and empower residents across the District, but with an emphasis on Ward 7 and Ward 8, bringing job training, small business development, affordable housing, and more, so they have full access to economic opportunities.
We call our program Where We Live.
Why this city and why now? Because, according to the DC Fiscal Policy Institute, families in economically challenged neighborhoods may spend up to 80 percent of their income on rent. In households with extremely low income renters, 70 percent are actively engaged in the workforce yet affordable housing and the ability to build wealth is out of reach.
We understand that addressing the complex issues facing Ward 7 and Ward 8 requires significant financial resources. We also understand that it requires the capacity to bring communities together for the long haul. So Where We Live is intentionally community-led. We spent time listening to local neighborhood leaders, and we will continue to engage with them through an advisory council that will help direct how our resources can do the most good.
Since action matters more than intention, here are two early examples of how Where We Live is starting to work in the District. Community lending plays a critical role in supplying capital – including debt and equity – for developers to create an affordable rental inventory. Projects like Archer Park and Parkway Overlook in Ward 8 received debt and equity financing from Wells Fargo and will collectively strengthen the neighborhood with more than 400 affordable rental homes.
And the philanthropic aspect of Where We Live is now bringing resources to nonprofit partners who train entrepreneurs, offer families homebuyer counseling, and keep youth focused on job skills rather than the wrong path.
In addition, we plan to deploy loan dollars to small businesses that wish to grow, mortgage loans to potential first-time home buyers, and financial education to residents who might need a leg up.
We are pleased to be working together to launch Where We Live in Washington, D.C., where Wells Fargo has been doing business since 1914. Wells Fargo is the biggest lender in the District, and this project builds on that legacy. Beyond lending, we have a long history of supporting neighborhoods financially and with volunteerism, including nearly 150 Wells Fargo volunteers investing more than 2,500 hours in the community in the last year.
Where We Live is a declaration of shared responsibility, and we consider the District an important place to make an impact. We hope you will support us on this journey. Together, we can improve lives and strengthen communities.
Read more about the revitalization of Washington D.C. neighborhoods
