Centene's philanthropic arm is joining forces with McCormack Baron Salazar to develop new affordable housing options in multiple states.
The multiyear partnership will back the construction of new communites in eight states, according to an announcement from the insurer. The Centene Foundation will provide loans at below-market rates to back the design and planning work at MBS and expects these loans to enable about $900 million in "direct construction-related activity," including the construction of thousands of units.
Further financial details of the partnership were not disclosed.
Centene said this investment seeks to directly address housing insecurity, a key social factor impacting health that affects many vulnerable members the insurer reaches.
“Centene is excited about the partnership with MBS—an organization that shares our commitment to transforming the health of the communities we jointly serve," Centene CEO Sarah London said in a statement to Fierce Healthcare. "The predevelopment loans will accelerate the planning and development of thousands of affordable housing units while also creating commercial space that will benefit residents and their neighbors."
"We look forward to working together to increase access to affordable housing—a key driver of health for our members," she said.
Centene noted that data from the National Low Income Housing Coalition suggest there was a dearth of 7.3 million affordable homes last year alone. This is a particular concern for people enrolled in Medicaid, which make up a significant chunk of Centene's business.
Putting the loans toward pre-development work is "an innovative and key differentiator for both organizations," according to the announcement. MBS projects that each dollar Centene invests in this phase will allow it to secure at least $30 in permanent funding from private sources as well as state, local and federal programs.
Each of the housing projects will include a first-floor commercial space that can house health services such as federally qualified health centers or other key locations to address social health needs, such as grocery stores or gyms.
"This partnership and the resources being invested will help bring innovation and new ideas to the important issues linking affordable housing with improved health outcomes," Vince Bennett, CEO of MBS, told Fierce.