Community Housing Capital (CHC) announced the capitalization of a $100 million multi-bank syndicated credit facility to finance the development and preservation of affordable housing.
CHC and Morgan Stanley led the creation of the facility. Other investors include Branch Banking and Trust Company (BB&T), Carver Federal Savings Bank, Charles Schwab, Deutsche Bank, HSBC, JPMorgan Chase, and Wells Fargo.
The fund is exclusive to the more than 240 organizations in the NeighborWorks America network. CHC is a national community development financial institution intermediary that provides affordable housing financing to NeighborWorks organizations.
CHC will use the funding to originate collateralized loans for the acquisition/rehabilitation of operating affordable multifamily properties; pre-development and construction of multifamily projects; mini-perm financing for multifamily properties; land acquisition; and the development of for-sale single-family subdivisions.
The new facility offers greater flexibility, provides lenders more opportunities for shared risk, and allows for future expansion. In addition to the facility, CHC will offer the syndicate lenders more opportunities to directly participate in larger loans within their respective local markets, according to organization leaders.
“At Morgan Stanley, we believe private capital plays a key role in strengthening underserved communities, and this $100 million credit facility will bring important new resources and opportunities to NeighborWorks organizations working to provide and maintain affordable housing,” said Mike Mantle, president of Morgan Stanley Community Investments, in a statement.
Paul Weech, CEO and president of NeighborWorks, said the facility will significantly leverage the annual grant investment the organization makes with CHC.
“This is a vitally important new financing tool for NeighborWorks organizations, increasing our network’s ability to serve more markets and consumers at a time when the supply of affordable and accessible rental housing and single-family homes is being stressed and even reduced,” he said.