Citigroup today announced a $105 million strategic partnership with the National Council of La Raza (NCLR). The core component of this partnership is a commitment to provide up to $100 million to finance the creation of affordable housing and community facilities, including single-family homes, multi-family rental housing, schools, and job training, child and health care centers located in Hispanic neighborhoods and/or serving Hispanic populations. NCLR is the largest -organization representing Hispanics in the U.S. with more than 300 affiliate members that together serve individuals in 39 states, Puerto Rico, and the District of Columbia.
Citigroup's investment commitment is accompanied by a $5 million grant from the Citigroup Foundation to support NCLR's community development initiatives in Hispanic neighborhoods. Funds from the grant will be used to expand the capacity of NCLR's community development subsidiary, the Raza Development Fund, and transform it into the country's first national Community Development Financial Institution (CDFI) dedicated to increasing investment in low-income Hispanic neighborhoods.
This partnership is one way that Citigroup is making communities better. Said Citigroup Chairman and CEO Sandy Weill, "As part of our ongoing work in the Hispanic community, we are proud to be partners with the National Council of La Raza, an organization that has done and continues to do, so much for so many."
"Thanks to this historic partnership with Citigroup, we will be able to expand NCLR's reach into the community - increasing the magnitude of our development work to such an extent that we could impact the lives of hundreds of thousands, if not millions, of Latinos throughout the country. We are deeply grateful to Citigroup for their commitment and vision," stated Raul Yzaguirre, President and CEO of the National Council of La Raza.
Citibank Community Development, a member of Citigroup, will administer the $100 million investment commitment. In 2002, Citibank Community Development loaned and invested more than $1.1 billion in low- and moderate-income communities across the U.S.
Said Andrew Ditton, Director of Citibank Community Development, "This commitment of capital is one of the largest partnerships ever between a global financial services company and a nonprofit community development institution. We are proud to be taking this leadership role in expanding the level of private investment in low-income communities."