U.S. Treasury awards to CDFIs affirm Network impact
The U.S. Department of the Treasury CDFI Fund announced $336.4 million Capital Magnet Fund awards to 59 high-impact organizations to support affordable housing. This is the largest award round since its creation and a 23% increase in the number of awardees compared to the FY 2020 award round.
Almost half of the total amount awarded, $146.7 million, is earmarked for 23 of HPN's high impact members across the nation, not including $4 million awarded to our own Housing Partnership Fund, which was founded in 2001 to meet members’ growing need for one of the most difficult types of investment to secure -- flexible, early-stage financing for affordable housing development.
The awards affirm the track record and powerful impact of the lenders who come together in HPN's Network to share peer-based learnings and do more together than they could possibly achieve alone.
Reactions from the field are filled with gratitude and optimism, for example:
- Cinnaire: “The Capital Magnet Fund plays an essential role providing capital to support affordable housing options for those that need it most. Since 2011, Cinnaire has used Capital Magnet Fund grants to leverage private financing to address housing instability in vulnerable communities across our footprint, creating a positive impact for families and local economies.” Katey Forth, Cinnaire Executive Vice President, Public Funding
- Ohio Capital Finance Corporation: "We are excited for Ohio Capital Finance Corporation (OCFC) who was awarded $12< of Capital Magnet Funds from the U.S. Department of the Treasury CDFI Fund. This will provide OCFC with additional capital to expand the advancement of affordable housing by providing flexible financing products through Oio, Kentucky, and West Virginia.
- Foundation Communities has been awarded $6 million to build new affordable housing in Austin from the US Treasury Dept. This funding will go toward the $28 million we need to complete eight affordable communities.
HPN and its members are required to leverage their awards with other private and public investment by at least 10:1, guaranteeing that a minimum of $1.47 billion will be invested in eligible projects across the United States.
These awards were made through the fiscal year (FY) 2021 round of the Capital Magnet Fund to support financing for the preservation, rehabilitation, development or purchase of affordable housing as well as related economic development and community service facilities such as day care centers, workforce development centers and health care clinics.