The New York Times reports that the commercial real estate industry is bracing for trouble as the midsize banks that service it become more cautious and less willing to lend. Commercial real estate values are also falling.
In times like these our capital here at BlueHub—innovative, patient and catalytic capital—is more critical than ever to the communities we serve. BlueHub Loan Fund helps connect low-income communities with flexible financing to generate equitable and inclusive economic opportunity. We finance a wide range of real estate backed projects—housing, educational facilities, health centers and more. The need for the services that these projects provide will not ebb—and we’re here to make sure that the financing remains available to build, preserve and enhance these developments. Thanks to the financial strength of BlueHub Capital, we have the latitude to lend at the size, scale and complexity needed by our borrowers. In fact, the Loan Fund just received nearly $5 million in grant funding from the US Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund)’s Equitable Recovery Program to help low-income communities recover from the COVID-19 pandemic and invest in long-term prosperity.
On the residential mortgage side of our nonprofit, home sale prices fell year-over-year in February—the first time in nearly 11 years. A decline in home values may make it easier for first-time homebuyers to enter the market, but it also could mean trouble for homeowners with lower incomes who might need to tap into their home equity to get by. Household budgets are already stretched—just check out the latest consumer debt numbers and delinquencies and the cost burden of utility bills on families with low incomes.
BlueHub SUN stands ready to help families facing foreclosure retain and regain homeownership and save their homes for good. The destabilizing effects of eviction are immense, we’re here to prevent as many as possible. And BlueHub Energy is exploring new ways to harness clean energy in low-income and environmental justice communities, ensuring that the people most impacted by climate change are able to access low-cost energy sources.
We pay close attention to the markets to make sure that we anticipate the future needs of our organization and those we serve. We remain ready to lend to build healthy communities where low-income people live and work.
-Elyse Cherry, CEO of BlueHub Capital