“As a company with roots in Southern California, one of the most expensive places to live in the world, we understand how important affordable housing is to reducing poverty and improving lives,” said said Douglas Bystry, CEO of Clearinghouse CDFI.
LAKE FOREST, Calif. (PRWEB)
August 03, 2022
Clearinghouse Community Development Financial Institution (Clearinghouse CDFI) today announced that it has received $4 million from the United States Treasury Community Development Financial Institution Fund (CDFI Fund). Clearinghouse CDFI will use the assistance to fund affordable housing development, targeting projects that benefit homeless people and other disadvantaged populations in California, Arizona, Nevada, New Mexico and Texas. At least 10% of the grant will benefit rural areas. Clearinghouse CDFI will leverage the prize up to ten times its value to create or preserve more than 400 affordable rental units for low and very low income individuals and families.
“As a company with roots in Southern California, one of the most expensive places to live in the world, we understand how important affordable housing is to reducing poverty and improving lives,” said said Douglas Bystry, CEO of Clearinghouse CDFI. “We are very grateful to the CDFI Fund for entrusting us with these funds to support the communities we serve.”
The award was part of a larger CDFI Fund award of $336.4 million to 59 organizations for the development of affordable housing and community facilities serving low-income individuals, families and communities. These awards were given out in the Capital Magnet Fund’s 2021 fiscal year and will support funding for the preservation, rehabilitation, development or purchase of affordable housing, as well as economic development and community service facilities. related such as day care centers, workforce development centers and health care clinics. This is the largest awards round since the Capital Magnet Fund’s inception and a 23% increase in the number of award winners compared to the FY2020 awards round.
“I am proud to announce the winners of the Capital Magnet Fund awards for fiscal year 2021, our largest series of awards yet,” said CDFI Fund Director Jodie Harris. “The lack of affordable housing is a persistent problem for our country. Expanding the reach of the Capital Magnet Fund to more organizations – one-third of which are first-time Capital Magnet Fund winners – will support vital funding for affordable housing and economic development and service facilities community services that our communities urgently need.
Winners are required to leverage their awards with other private and public investments of at least 10 to 1, guaranteeing that a minimum of $3.36 billion will be invested in eligible projects across the United States . For the fiscal year 2021 cycle, the winners predict that nearly $12.8 billion will be invested in total, including more than $9.8 billion in private investments.
The 59 winners will collectively serve 47 states, the District of Columbia and Puerto Rico. Thirty awardees (51% of total awardees) plan to invest part of their scholarship in rural areas, and nine of these awardees plan to invest at least half of their scholarship in rural areas. Of the 59 winners in total, 32 are Community Development Financial Institutions (CDFIs) and 27 are non-profit housing organizations. The 59 winners were selected following a competitive merit-based review of nominations submitted by 146 organizations that requested more than $991.8 million from the FY 2021 Capital Magnet Fund round.
About the CDFI Fund
Since its inception in 1994, the CDFI Fund has awarded more than $5.5 billion to CDFIs, community development organizations and financial institutions through: the Bank Enterprise Award program; the Capital Magnet fund; the CDFI rapid response program; the Community Development Financial Institutions Program, including the Healthy Foods Financing Initiative; the Economic Mobility Corps; the financial education and counseling pilot program; the CDFI Native American Assistance Program; and the Small Loans Program. In addition, the CDFI Fund allocated $66 billion in tax credit allocation authority to community development entities through the New Markets Tax Credit program and closed covered bonds for more than $1.8 billion through the CDFI bond guarantee program.
About Clearinghouse Community Development Financial Institution (Clearinghouse CDFI):
The CDFI clearinghouse serves unmet credit needs in the United States and Indian Country through direct lending, equity investment, and financial assistance. For 25 years, Clearinghouse CDFI has helped bridge the gap between conventional lending standards and the needs of low-income, distressed and communities of color. Clearinghouse CDFI is also a B Corp, a certification received from the non-profit B Lab. B Corps are companies that adhere to rigorous standards of social and environmental performance, transparency and accountability, and use business as a force for good.
Clearinghouse CDFI has funded $2.1 billion in total loans for more than 2,546 community projects over the past 25 years. These projects have created or maintained more than 38,866 jobs and benefit more than 3.24 million people. CDFI Clearinghouse Loans have also created/maintained 24,329 student places and 10,100 affordable, student and shelter housing since inception. In 2021, Clearinghouse CDFI loans included $45.7 million for 24 projects with environmental efforts and $38.6 million for 185 minority/women owned or controlled businesses. CDFI loans from the clearing house created a total of 619 housing units, 62% of which were designated as affordable. Clearinghouse CDFI also provided $472,000 to Native American-owned businesses in 2021.
More information is available at http://www.ccdfi.com.
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