Avanath Capital Management, a minority-owned private real estate firm that invests in affordable and workforce housing throughout the United States, has announced an action plan aimed at helping the multifamily industry address inequality in minority communities.
“The multifamily industry controls $4 trillion in physical assets and houses more than 108.8 million people in America,” says founder, CEO, and chairman Daryl Carter. “The magnitude of this industry translates into a responsibility for apartment owners to emerge as a catalyst for change, now.”
The industry veteran points to limited access to quality health care and healthy foods, lack of housing opportunities in locations that offer greater economic upward mobility, poor quality schools, and limited political empowerment as contributing factors to ongoing inequality.
“African-Americans comprise 13% of the U.S. population, yet represent 23% of COVID-19 deaths and 26% of police killings,” he says. “These are sobering statistics that can be attributed to the same root cause—a lack of investment in communities of color.”
He adds: “The good news is, there is something we can do to effect change rapidly.”
Carter says the eight-point action plan offers specific strategies for the multifamily industry to contribute to residents’ upward mobility while equally benefiting communities and investors. Plus, by addressing the needs of African-Americans and Hispanic renters, which make up 40% of the U.S. rental market, it ensures economic viability for apartment communities for the long term.
1. Focus more investment capital on communities of color that have been traditionally underserved by institutional capital.2. Increase acceptance of residents with Section 8 vouchers.
3. Create community forums at properties with law enforcement and elected officials.
4. Accelerate diversity at all levels and functions in ownership organizations.
5. Implement wellness programs at apartment communities.
6. Adopt a low-performing public school in local market areas.
7. Use status as a significant property owner to lobby for improved policy community relationships.
8. Enrich locations that are “food deserts” with farmers markets and other strategies to bring fresh food to residents.
“As an industry and as a nation, it is our responsibility to do good while also doing well,” notes Carter. “By deepening our investment in minority communities and thoughtfully addressing the issues at hand, today’s apartment owners are poised to effect real change, while equally maintaining sound investments that positively impact their business for the long term.”Carter’s firm has been striving to make positive changes at its properties, many of which are in communities of color. The firm owns 83 affordable and workforce communities with over 10,000 units in 12 states. He told MFE in late May that he believes more needs to be done to make these communities healthier. His firm has a focus on wellness in its senior developments and has a number of other strategies, such as bringing farmers markets and cold storage lockers for grocery delivery to its properties.
“I think we are going to need to have a greater focus on better outcomes for communities underserved by institutional capital,” he says. “This pandemic has certainly shown the challenges in a lot of the urban communities. Given our resident base, we want to help be part of the solution of making high-density communities healthier.”
