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Philly Accelerator Fund creates loan program for minority-owned property developers

The city subsidized PAF with an investment of around $11 million to get things started. The fund is intended to circumvent the barriers that minority property developers face when applying for bank loans, WHYY reported.  The group aims to raise another $30 million dollars by this fall, after which they can start offering loans and investment opportunities. In five years, they hope to raise more than $100 million and produce 6,000 affordable housing units. Greg Heller, director of PAF and vice president of community investments at the Philadelphia Housing Development Corporation, said the fund is modeled after a similar program in San Francisco that offers loans to nonprofit affordable housing developers so they can compete with market-rate builders.

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