Capital One announced Wednesday that it will partner with a Chicago nonprofit to help solve the country’s affordable housing crisis through a $25 million program.
The program, called Scaling Pathways to Homeownership, is designed to invest in new ideas that will expand access to affordable housing. In collaboration with the Chicago nonprofit Lever for Change, it will award 10 finalists $200,000 in initial funding, plus technical assistance, to strengthen their proposals.
Five awardees will then be chosen in spring 2027 to receive an additional $4.6 million over five years to realize their proposals, according to the Capital One.
Applicants must be based in the U.S. and register by 5 p.m. on Dec. 17, with applications due on January 29, 2026.
“Some of the most effective housing solutions are born in local communities and led by smaller institutions that deeply understand the needs of their neighbors,” Kerone Vatel, senior vice president and head of community finance, impact and investment at Capital One, said in a news release. “Through this Open Call, we’re helping to elevate and accelerate those efforts already underway — showcasing local innovations that are helping to shape a national movement to strengthen the housing ecosystem.”
Capital One and its partners said they’re looking for ideas “that can drive transformative change,” pointing to solutions in housing counseling, consumer education and for-sale housing production at scale. Modular housing, for example, has helped boost homeownership and kept housing affordable for residents on the South and West sides.
“It’s not about a one-size-fits-all solution,” Olivia Ortega, director of housing solutions for the Office of Illinois Gov. JB Pritzker, said, during a Wednesday event announcing the program. “It’s about funding riskier, locally grounded innovation — the kind that can actually move the needle. And, it’s an acknowledgment that the people closest to the problem often have the best ideas for how to solve it.”
The open call will prioritize proposals that address information gaps in the homebuying process, the lack of new housing supply, improving access to housing and support homebuyer education.
Lever for Change, which helps connect donors with organizations seeking funding for their ideas, will manage the new program. Finalists will be added to Lever for Change’s Bold Solutions Network that offers networking and educational opportunities, along with the potential to secure funding.
“Homeownership is a gateway to stability and opportunity,” Kristen Molyneaux, president of Lever for Change, said. “This Open Call is about unlocking innovative solutions that empower individuals and families to achieve this goal and all the long-term benefits it brings.”
Chicago and Cook County have been pushing to create more affordable and market-rate housing across the region, like the county’s modular housing pilot program. The city’s Missing Middle Infill Housing program is targeting vacant city-owned land to encourage the construction of -housing like single-family homes with accessory dwelling units and two-flats for middle-class families.
Chicago has a shortage of 126,125 affordable homes for those with the lowest incomes, according to a 2024 report from Housing Action Illinois and the National Low Income Housing Coalition.
Last year, Capital One deployed $2.9 billion in Chicago to help finance 15,000 affordable rental units, according to Vatel.
“Expanding access to homeownership is essential to building stronger, more stable communities,” Mayor Brandon Johnson said in a news release. “By launching this initiative here in Chicago, Capital One and Lever for Change are helping to drive the kind of inclusive innovation that gives more families the opportunity to build wealth, put down roots, and share in our city’s growth.”
Capital One said the program’s launch is part of its acquisition of Riverwoods-based Discover Financial Services. The lender launched a five-year, $265 billion community benefits plan that expands “lending, investment, and services that advance economic opportunity and financial well-being across the country.”
Capital One in February bought Discover for $35 billion, in a deal that brought together two of the nation’s biggest lenders and credit card issuers. Discover was the 33rd biggest banker at the time, with $143.4 billion in assets and $104 billion in deposits.
Since then, Capital One filed notices with the state that it would lay off nearly 600 employees, with the last workers exiting leaving in May 2026.
This is a developing story. Check back for updates.