The Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund) has awarded $175.4 million to 48 organizations under the Capital Magnet Fund’s largest round to date.
The 2020 awards will finance the development of affordable housing and community facilities in low-income communities across the country.
The awardees plan to develop nearly 23,000 affordable housing units, including more than 20,300 rental units and more than 2,600 homeownership units. About 97% of all the units will be developed for low-income families (80% of the area median income or below).The awardees were selected from 137 applications that requested more than $642.2 million, reported officials. Twenty-one nonprofits and 27 CDFIs received awards this year.
The Local Initiatives Support Corp. (LISC) received a $7.5 million award, which will help leverage $181 million in affordable housing and economic development in distressed rural and urban communities in 15 states, said the organization.
“The Capital Magnet Fund gives us another way to help developers address financing gaps and build affordable housing in communities where there is high demand,” said Connie Max, LISC senior vice president of lending.
The 2020 round is the sixth in the program’s history. In the earlier rounds, the CDFI Fund has awarded more than $565 million to qualified nonprofits and CDFIs. As of Sept. 30, 2020, completed projects have created 28,100 affordable units and supported the completion of 25 community facilities.
