Achieve equity and inclusion in securing debt capital

Scope

The Owner shall set and implement inclusive debt capital principles, defined in Requirements, to promote the inclusion of minoritized banking institutions (MBI), including but not limited to people of color and women, as lenders in commercial real estate projects. The scope includes setting and implementing these principles but does not extend to assessing their effectiveness.

Note: If projects in rating systems other than B+I: Developer and B+I: Occupier are seeking external debt or capital to fund the project, this Activity shall apply, and points can be pursued to achieve certification.

Requirements

Act to Avoid Harm

01.

Establish a relationship with at least two MBIs for sourcing debt capital for the project through construction loans, project financing, and/or lines of credit.

Benefit Impacted Parties

02.

Establish operating accounts with an MBI, increasing their stable source of deposits.

Contribute to Solutions

03.

Prominently feature MBI partnership in marketing and communications to raise their public profile.
04.

Introduce MBI to networks of real estate investors, developers, and property managers to grow relationships.
05.

Refer Tenants to the MBI for their banking needs.

Indicators

The performance indicator is the percentage of MBI debt capital on the project. The first context indicator is the project's total debt capital secured from MBI. The second context indicator is the total deposit amount placed with the MBI. The third context indicator is the total number of tenant referrals sent to MBI. The fourth context indicator is the total number of referrals to commercial real estate network contacts.

To calculate the performance indicator:

The performance indicator can be calculated as follows:

(Amount of debt capital sourced from MBI / amount of project debt capital) x 100

Scoring

Points assignment

Points	Percentage of MBI Debt Capital
1 point	50-69% of MBI financing target
3 points	70-84% of MBI financing target
5 points	85-99% of MBI financing target
7 points	100% of MBI financing target

These benchmarks aim to significantly stretch participation for impact while still recognizing most MBIs have balance sheet and regulatory constraints from playing an oversized role, especially on more significant transactions. But meaningful participation should be the goal to expand minoritized banking institutions while prudently managing scale realities.

The scoring rubric is based on current industry demographics for real estate investors¹⁰⁵ as a proxy due to lack of an established industry standard for debt capital benchmarks.

Additional points assignment

Points	Additional Requirements Satisfied
+1 point	Requirement #3 satisfied
+1 point	Requirement #4 satisfied
+1 point	Requirement #5 satisfied

Documentation

Benchmark targets

01.

List of financial, human, and material resources utilized for this activity.
02.

Documentation of engagement with at least two MBIs, including loan agreements, communications, and records.
03.

Evidence of operating accounts with an MBI, including account records, statements, and evidence of deposit amounts.
04.

Copies of marketing and communications featuring MBI partnership, along with evidence and dates of publication.
05.

Documentation of introduction of MBI to networks of real estate investors, developers, and/or property managers.
06.

Documentation of referral of MBI to Tenants.
07.

Complete and detailed explanation for utilizing a lowered MBI financing target due to a limited or nascent minoritized banking sector (if applicable).