California Community Reinvestment Corp. (CCRC) has increased its lending capacity for affordable housing projects throughout the state.
The organization announced a series of financing milestones with the closing of a $114 million securitization of tax-exempt loans alongside $10.1 million in additional capital from existing bank partners.
These transactions strengthen CCRC's ability to continue funding permanent loans for affordable multifamily housing developments across the state, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness, said organization leaders.
According to CCRC, the securitization marks the first time a Community Development Financial Institution (CDFI), rather than a bank or government entity, has completed a transaction of this kind.
Structured in two tranches, the deal drew strong demand from investors in the public municipal market. Wells Fargo served as underwriter, and U.S. Bank acted as trustee and custodian.
Unlike most lenders, which sell or deliver loans to Fannie Mae or Freddie Mac at closing, CCRC retained these loans on its balance sheet before bringing them to the municipal market for securitization, a structure that has been used by only a handful of financial institutions since it first emerged in 2019. Executing a transaction of this kind requires both the operational capacity and the credit rating to do so, capabilities that are rare among CDFIs nationally, reports CCRC.
Alongside the securitization, several of the lender’s existing bank partners are leaning in with new and expanded commitments, bringing $10.1 million in additional capital to support investment in affordable housing.
Beneficial State Bank increased its loan pool contribution from $12.5 million to $15 million, and separately made a new $2.5 million commitment to CCRC's tax-exempt loan pool. State Bank of India (California) increased its loan pool contribution from $1.9 million to $3 million. Bank of America returned to CCRC's loan pool with a new $2 million commitment. Wells Fargo provided a $2 million patient capital loan, designed to support shorter-term bridge lending that helps preserve affordable housing.
"Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars," said CCRC president and CEO Tia Boatman Patterson. "The securitization reflects years of work to build the infrastructure and track record needed to access the public markets. The increased commitments from our bank partners demonstrate the trust we've built with our investors and their continued commitment to financing affordable housing. Having the ability to recycle capital, lower our cost of funds, and continue expanding affordable housing finance opportunities is critical for our development sponsors and the California communities they serve."
CCRC is a CDFI multifamily affordable housing lender, tackling the affordable housing crisis throughout the state.