**Update June 2015: The Capital Magnet Fund (CMF) was authorized by the Housing and Economic Recovery Act of 2008 (HERA) (see the Statute for more information). In December 2014, the Federal Housing Finance Agency instructed the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac to begin allocating funds to the Capital Magnet Fund for calendar year 2015. The CDFI Fund currently expects that the next application round will open in 2015; however, awards will not be made until the CDFI Fund receives the appropriate funding from the GSEs. At this point, the CDFI Fund anticipates that the GSEs will make such funds available 45 days after calendar year end. The CDFI Fund expects to make awards within 60 days of receiving funds from the GSEs.**
Through the CMF, the CDFI Fund will provide competitively awarded grants to CDFIs and qualified nonprofit housing organizations. CMF awards can be used to finance affordable housing activities as well as related economic development activities and community service facilities. Awardees will be able to utilize financing tools such as loan loss reserves, loan funds, risk-sharing loans, and loan guarantees to produce eligible activities whose aggregate costs are at least ten times the size of the award amount.
An organization applying for a CMF Award must either: (1) be currently certified as a CDFI by the CDFI Fund; (2) have an application for CDFI certification pending with the CDFI Fund, provided such application was submitted prior to the due date specified in the applicable NOFA; or (3) be a nonprofit organization having as one of its principal purposes the development or management of affordable housing. All Applicants (regardless of entity type) must demonstrate that they have been in existence as a legally formed entity for at least three years prior to the FY 2010 Funding Round Application deadline.