Categories: Finance

Centene collaborates on affordable housing

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Centene Foundation and McCormack Baron Salazar Partner to Build Affordable Housing Communities

The Centene Foundation, the philanthropic arm of Centene, has announced a multiyear partnership with affordable housing developer McCormack Baron Salazar (MBS) to construct new affordable housing communities in eight states.

Through this partnership, the Foundation will provide below market-rate loans to support MBS’ pre-development design and planning work, ultimately leading to the construction of affordable housing in distressed and underserved communities. The organizations anticipate that these loans will enable approximately $900 million of direct construction-related activity, resulting in the creation of thousands of affordable housing units in low-income areas.

The lack of affordable housing is a critical issue that impacts many economically vulnerable populations and is a key driver of health disparities. According to the National Low Income Housing Coalition, there was a shortage of 7.3 million affordable homes in the U.S. in 2023, making it especially challenging for Medicaid beneficiaries.

MBS, founded in 1973 and headquartered in St. Louis, focuses on improving community health through local engagement and access to healthcare and social services. The partnership with the Centene Foundation will allow MBS to leverage pre-development dollars to secure additional financing from various sources, enabling the construction of more affordable housing units.

In addition to providing housing, the projects will include first-floor commercial space for essential health-related services such as Federally Qualified Health Centers, grocery stores, and community gyms. This holistic approach aims to address the health and social needs of the communities being served.

The financial terms of the partnership were not disclosed, but the impact of this collaboration is expected to be significant in addressing the critical need for affordable housing and improving health outcomes for vulnerable populations.

Team@GQN.