Strategies for addressing the affordable housing shortage

Editor's note: This content was first published on Commercial Observer. You can read the full article here. 

Capital One is responding to the need for affordable housing in multiple ways, including  grants, financing, tax credits and government partnerships. Since 2024, Capital One has provided $2.9 billion in financing to develop more than 15,000 units of affordable rental housing alongside $10.1 million in grants to more than 160 local nonprofit organizations.¹

“The number of people affected by the affordable housing crisis throughout the U.S. is growing by the day,” Justin Shackleford, Capital One’s senior vice president of Agency Originations, told the Commercial Observer. “Capital One aims to be at the forefront of a solution that requires both strategic partnerships and meaningful investment in the communities we serve.”

Shackleford outlined steps the bank is taking to help achieve these goals: 

Capital One’s $265 billion Community Benefits Plan is a five-year commitment developed in partnership with community groups representing more than 800 nonprofits nationwide. It includes $44 billion in community development financing and $600 million in support for Community Development Financial Institutions—with the aim of expanding access to affordable homes, credit for small businesses and investments in local infrastructure, schools and healthcare facilities.

The plan is grounded in collaboration and transparency. Capital One  is committed to regular updates with community partners, stakeholders and regulators as the program unfolds, ensuring accountability and continuous improvement.

Launched in October 2025, this $25 million grant initiative is designed to address systemic barriers to affordable homeownership. Welcoming proposals at both local and national levels, the initiative seeks ideas that can drive transformative change, such as innovations in housing counseling, consumer education and for-sale housing production.

Ten finalists, to be announced in Fall 2026, will each receive $200,000 in initial funding. From that cohort, five recipients—selected in early 2027 and awarded in spring 2027—will receive an additional $4.6 million each over five years to bring their ideas to life.

Capital One offers integrated financing that combines construction loans, Low-Income Housing Tax Credit (LIHTC) equity and permanent capital from Fannie Mae, Freddie Mac and the Federal Housing Administration. This approach simplifies complex transactions and supports developers through every phase of a deal.

Capital One’s product suite positions it as a one-stop shop for development financing needs. The expansion of LIHTC financing is expected to unlock hundreds of thousands of new affordable units over the next decade.

Capital One’s Agency Finance team maintains deep relationships with Fannie Mae and Freddie Mac that are central to how the bank structures capital for affordable housing. Agency loans originated by Capital One typically serve as permanent financing, often paired with construction debt and LIHTC equity.

The alignment between Capital One and the government-sponsored entities has never been stronger—both are focused on expanding access for low- and moderate-income renters at a moment when that need is most acute.

Affordable housing directly affects the everyday lives of people in the communities served by  Capital One. The bank will continue to develop and promote innovative financing structures, community partnerships and grant programs that allow it to reach more developers, buyers and community development organizations nationwide.

“It’s critical that Capital One be a leader in supporting affordable housing nationwide, not just as an advocate, but by putting our substantial resources behind it,” Shackleford said. 

 

Learn more about Capital One’s approach to affordable housing.

 

References: 

1. Capital One. $25M Open Call to Expand Pathways to Homeownership. Capital One Newsroom.