The Community Preservation Corp. (CPC), National Equity Fund (NEF), and Cinnaire are partnering in CPC Mortgage Co., a national mortgage lending company specializing in multifamily agency finance products.
CPC Mortgage is the only nonprofit seller/servicer with a full suite of Freddie Mac, Fannie Mae, and Federal Housing Administration multifamily mortgage products, according to the company.
“This first-of-its-kind partnership was created to leverage the resources, expertise, and geographic reach of CPC, Cinnaire, and NEF to increase access to flexible agency mortgage capital in communities where it is needed most, with the goal of expanding and preserving affordable and workforce housing,” said John Cannon, president of CPC Mortgage. “We believe that our suite of agency products are critical for multifamily owners to maintain the physical and financial health of their properties—and importantly to preserve affordability for the people who call them home.”
About 18 months ago, the firm started looking at other companies in the space that it could bring in as partners to help with that expansion. NEF and Cinnaire, two longtime low-income housing tax credit syndicators and affordable housing finance firms, both are were a natural fit, according to Cannon.
“Both are like-minded nonprofits that share our mission and values and are very well-known and respected in the affordable housing space, and both transact at scale,” he said. “Additionally, they both bring an intentional focus on creating an impact in communities through investments in housing, and they each have strong footprints regionally and nationally. From those standpoints, it’s a very strong, very aligned relationship.”
For the nonprofits, it’s a critical counterbalance to the for-profit offerings that have been available, according to Matthew Reilein, president and CEO of NEF.
“Being able to offer agency debt extends the life cycle of our lending capabilities in line with our mission to further expand and preserve affordable housing across the country,” he said.
Officials add that CPC Mortgage also provides a new avenue for socially responsible investments in housing, giving multifamily owners and investors an opportunity to access permanent capital, while supporting and advancing its members’ nonprofit work to create a positive impact in communities.
CPC Mortgage was initially launched as a fully owned subsidiary of CPC in fiscal 2019. In fiscal 2022, the company executed more than $560 million in agency originations, keeping up a pace of roughly 32% year-over-year growth. Since inception, 97% of the units financed have been affordable, with 77% being affordable to households earning less than 80% of the area median income.
“When we originally launched CPC Mortgage Co., our goal was to use our unique experience as a nonprofit lender to reach multifamily owners who either didn’t have access to agency products, or didn’t have the technical expertise needed to take advantage of them. We’re extremely pleased to have two mission-aligned companies like Cinnaire and NEF joining us to help expand our impact and ability to reach the owners and communities that are most in need,” said Rafael E. Cestero, CEO of CPC.
Mark McDaniel, president and CEO of Cinnaire, said his firm is aware of the challenges that many affordable housing developers face in accessing capital and is committed to expanding access to financing that supports multifamily development in areas that need it most. “It was a priority for us to partner with organizations with the same mission and we are looking forward to joining CPC and NEF in providing developers expanded access to quality financial tools to build equitable communities,” he said.
Reilein agreed, adding, “Our joint partnership in CPC Mortgage Co. presents a powerful opportunity to offer additional nonprofit, mission-driven capital solutions for developers to build and maintain safe, stable, and affordable housing to help residents and communities to thrive for the long term.”