Communities across the U.S. are facing tough, complex challenges — such as a lack of employment, food accessibility, education and affordable housing. These challenges are exacerbated by rising costs of living.

• As a result, some households are unable to cover the costs of necessities, while others struggle to save and invest in their futures.

That's where the public and private sectors can work together with communities to help realize their visions and address their needs.

Capital One's Managing VP of Community Finance Desiree Francis shares how the company works with public and private sectors to help create thriving communities.

1. First things first: Why is community development important to Capital One?

Francis: Capital One aims to expand and improve access to financial products and digital tools in the communities we serve, unlocking greater financial inclusion while prioritizing customers' holistic financial health.

It's important for us to understand the challenges individuals and communities are facing; seek their input on services, partnerships and programming that will help solve those challenges; and then leverage our resources at scale to create pathways toward financial well-being.

• In 2023, Capital One financed more than $5.4 billion of affordable housing for low- to moderate-income households nationwide.
• We also provide financing that supports community services, economic development and neighborhood revitalization.

2. How it's done: What is Capital One's role in community development financing?

Francis: We collaborate with public and private entities, which enables us to advance our shared goals. This is embodied through our work leveraging two key government programs as an investor.

The Low-Income Housing Tax Credit (LIHTC) is the primary tool to create and preserve affordable rental housing.

• This program is one of the most successful public-private models. According to the Affordable Housing Tax Credit Coalition, LIHTC-financed properties have housed over 8 million households and supported over 6 million jobs.
• Last year, Capital One's Community Finance team originated $2.3 billion in debt and LIHTC equity investments that financed more than 14,000 affordable housing units.

The New Markets Tax Credit (NMTC) provides incentives for private investment and development in economically distressed communities.

• The program was established by Congress in 2000, and investments have benefited education, health care, community centers and more.
• In 2023, Capital One invested $514 million in 26 NMTC projects designed to serve or employ low-income people.

3. Some examples: What impact has Capital One made through these programs so far?

Francis: In Santa Clara, California, Capital One originated a construction loan for Agrihood, a seniors affordable housing property.

• Agrihood is the largest urban farm/affordable housing development in California, which creates produce for residents and the community and promotes physical and mental well-being through gardening activities.
• Agrihood offers resident services and programs to support health and wellness, financial literacy, computer training, and onsite food cultivation and preparation.

The development provides more than 160 units for residents ages 55 and older, with preferences for veterans and carless households.

• 54 units are for permanent supportive housing, which incorporates affordable housing with services designed for people at risk of becoming unhoused, those who have been unhoused, and those with differing mental and physical capabilities.

Through the NMTC program, Capital One financed the construction of Rindge Commons, which includes an integrated workforce training center with classrooms, workshops, a laboratory and an early childhood education facility.

• Just A Start, a nonprofit organization serving Cambridge, Massachusetts, for more than 50 years, will engage higher education and local employers as partners for tuition-free adult career programs in the biomedical and IT fields.
• The pre-kindergarten program will serve more than 60 students and is open to all. Families whose incomes are at or below the area median income will qualify for tuition assistance.

4. Next steps: How can public and private partners continue to work together to meet diverse community needs across the U.S.?

Francis: It's important to engage key stakeholders and community members. These conversations can uncover unmet needs and opportunities to advance socioeconomic mobility.

• This includes local community organizations and service providers, elected officials, community members and advocates, and private businesses.

Further, at the federal level, Congress can take action to pass legislation to make the NMTC program permanent since it's set to expire at the end of 2025.

Legislators can also expand the LIHTC program as part of any tax bill in 2025.

5. Looking ahead: How does Capital One plan to continue to support community development?

Francis: Capital One recently announced a $265 billion Community Benefits Plan as part of its proposed acquisition of Discover.

• The plan commits $44 billion in community development financing, including over $35 billion supporting affordable housing for low- to moderate-income (LMI) communities and individuals.
• The plan also commits more than $5 billion to support solutions to challenges LMI communities face, including employment, food accessibility, health care, education, renewable energy and public infrastructure.

Learn more.