TWENTY-THREE ORGANIZATIONS will receive $80 million in grants to finance affordable housing under the new Capital Magnet Fund.
Thirteen of the awardees are nonprofit housing groups, nine are Community Development Financial Institutions (CDFIs), and one is a tribal housing authority, announced the CDFI Fund.
Abode Communities in Los Angeles, The Community Builders in Boston, Volunteers of America National Services in Eden Prairie, Minn., and Southwest Housing Solutions Corp. in Detroit are some of the developers receiving awards.
“The grant will help us to continue to support the production of affordable housing,” says Robin Hughes, president and CEO of Abode. The nonprofit will use its $4 million award to capitalize a revolving loan fund that will leverage about $270 million in development over the next four years.
Financial organizations receiving grants include the Local Initiatives Support Corp. (LISC). The organization will use its $5 million award to leverage private loan dollars and launch the LISC Neighborhood Revitalization Loan Fund, which is expected to finance at least $100 million in affordable rental housing, community facilities, and economic development activities.
Ohio Capital Finance Corp. (OCFC), the lending arm of the Ohio Capital Corporation for Housing, also received $5 million. It plans to create a revolving equity bridge loan program. This benefits developers by reducing the total project construction interest costs, says OCFC President Jon Welty.
Century Housing, a nonprofit affordable housing lender based in Southern California, will use its $5 million grant to expand its lending activities throughout the state, according to Stephen Peelor, senior vice president of lending.
San Francisco-based Low Income Investment Fund (LIIF) received the largest award. “LIIF will use its $6 million grant to leverage additional private capital to invest $180 million in affordable housing and related community facilities projects in underserved neighborhoods,” says COO Kimberly Latimer- Nelligan.
Established by the Housing and Economic Recovery Act of 2008, the Capital Magnet Fund drew applications from 230 organizations requesting more than $1 billion in funds. Thirty-eight states as well as the District of Columbia and Puerto Rico will potentially be served.
Supporters hope more money will be authorized to the fund in the future.
