Multiyear partnership will focus on
predevelopment loans to enable approximately $900 million in planning activity and
construction
Partnership expected to create thousands of
housing units and drive improved health outcomes for
Medicaid-eligible populations through increased access to
health-related services
ST.
LOUIS, May 21, 2024 /PRNewswire/ -- The Centene
Foundation ("the Foundation"), the philanthropic arm of Centene
Corporation ("Centene") [NYSE: CNC] – a leading healthcare
enterprise focused on transforming the health of the communities it
serves, and McCormack Baron Salazar
("MBS"), one of the nation's leading developers of affordable
housing, announced they have entered into a multiyear partnership
to construct new affordable housing communities in eight states.
Under the partnership, the Foundation will provide below
market-rate loans to support MBS' predevelopment design and
planning work, leading to the construction of affordable housing in
distressed and underserved communities. The loans are anticipated
to enable approximately $900 million
of direct construction-related activity, supporting the creation of
thousands of affordable housing units in low-income communities
across the country. The partnership is intended to address the
critical lack of affordable housing – a key driver of health –
impacting many economically vulnerable populations for whom Centene
provides vital healthcare services.
"Among the challenges facing many low-income Americans is the
availability of affordable housing," said Centene Chief Executive
Officer (CEO), Sarah M.
London. "This innovative partnership promises to
accelerate the development of high-quality, affordable housing by
providing early-stage funding at rates not available on the open
market. Centene and our local health plans will also have the
opportunity to participate in community engagement to help ensure
that new housing and onsite services have the greatest possible
impact on the health of local residents, many of whom Centene
serves."
The availability of affordable housing is recognized as a key
driver of health equity and positive health outcomes. However,
according to the National Low Income Housing Coalition, there was a
shortage of 7.3 million affordable homes in the U.S. in 2023. The
lack of affordable housing is especially challenging for Medicaid
beneficiaries, a key community served by Centene, as the nation's
largest provider of Medicaid insurance.
The partnership between the Foundation and MBS builds on
Centene's 40-year history of providing whole-health solutions and
MBS' 50-year track record of successful community revitalization.
The partnership also reflects the Foundation's philanthropic
mission to invest in programs that improve the lives and health of
members in the communities Centene serves.
Founded in 1973, MBS is a St.
Louis-headquartered company that shares the Foundation's
commitment to improving the health of communities through local
engagement, timely access to healthcare and social services. The
opportunity to leverage predevelopment dollars is an innovative and
key differentiator for both organizations. MBS estimates that every
dollar of support from the Foundation will enable MBS to obtain
$30 or more of permanent financing
from local, state and federal programs and private sources.
Additionally, the partnership will allow the Foundation to expand
its efforts to support the whole health of economically vulnerable
populations across the country.
"Overcrowding, housing insecurity and substandard
housing correlate to a long list of detrimental public health
outcomes," said MBS President and CEO, Vince Bennett. "These include chronic disease,
exposure to toxins, injuries, and child development losses. Indeed,
we learned early in the pandemic the relationship between adequate
housing and public health. As early as May
2020, California
researchers had found a clear link between Covid-19 deaths and
essential workers living in overcrowded homes. The Centene
Foundation's investment in this vital preventive step can not only
help stabilize households and communities, but it can save public
health care funding and lives," said Bennett.
Each development project will be designed with the health of
residents in mind. Informed by health and social needs, assessments
and community feedback, the projects will include first-floor
commercial space for important health-related services such as
Federally Qualified Health Centers, grocery stores, community gyms
and other beneficial offerings that can be accessed by the local
community.
Financial terms of the partnership were not
disclosed.
About Centene Foundation
The Centene
Foundation (the "Foundation"), a private nonprofit focused on
investing in economically challenged communities, is the
philanthropic arm of Centene Corporation (NYSE: CNC)
("Centene"). The Foundation supports projects and initiatives
strategically aligned with Centene's mission-driven culture and
enhances the work Centene is doing to remove the barriers to
wellness underserved and low-income populations face. The
Foundation is committed to addressing social determinants of health
and improving health equity in three distinct areas of focus:
healthcare access, social services and education. To learn more,
visit the Centene Foundation's website.
About McCormack Baron
Salazar
McCormack Baron
Salazar is one of the nation's leading developers,
property managers, and asset managers of economically integrated
urban neighborhoods. Since 1973, the firm has been an innovator of
community development and urban revitalization in 48 cities, having
built more than 25,000 high-quality homes with total development
costs of over $5 billion.
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SOURCE Centene Foundation