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Treasury Guarantees $245 Million in Bond Funding for Projects in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=272Treasury Guarantees $245 Million in Bond Funding for Projects in Low-Income Communities<p> <b>Washington, DC—</b>U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced today that Treasury issued two guarantees totaling $245 million under the Community Development Financial Institutions (CDFI) Bond Guarantee Program. The guarantees were issued on behalf of nine Eligible CDFIs under the fiscal year (FY) 2017 round of the program. Over $1.36 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.</p><p>“The CDFI Bond Guarantee Program is an effective tool for connecting distressed communities to the investment capital they need to grow and prosper. I am excited to announce the 2017 program participants,” said Director Donovan. </p><p>The FY 2017 program participants include:</p><p> <b>Community Reinvestment Fund, USA</b> issued a $100 million bond on behalf of Aura Mortgage Advisors, LLC (Aura), an affiliate of Boston Community Capital and part of its Stabilizing Urban Neighborhoods (SUN) Initiative. SUN helps low-income families facing foreclosure repurchase their homes with fixed rate mortgages they can afford, stabilizing families and communities.</p><p> <b>Opportunity Finance Network</b> issued $145 million in bonds on behalf of the following eight Eligible CDFIs:</p><ul><li><p>Building Hope, headquartered in Washington, DC, received a $25 million bond loan to finance charter schools in low-income communities.</p></li><li><p>Coastal Enterprises, Inc., headquartered in Brunswick, ME, received a $20 million bond loan to finance community and small business solar power generation projects that impact low income communities across the country, including rural communities.</p></li><li><p>Community First Fund, headquartered in Lancaster, PA, received a $10 million bond loan to provide financing for commercial real estate, not-for-profit organizations and affordable housing in underserved urban and rural communities. </p></li><li><p>Florida Community Loan Fund, headquartered in Orlando, FL, received a $30 million bond loan to finance affordable rental housing and commercial real estate projects in low-income communities. </p></li><li><p>Greater Minnesota Housing Fund, headquartered in St. Paul, MN, received a $10 million bond loan to finance affordable rental housing projects in Minnesota’s underserved communities. </p></li><li><p>Homewise, Inc., headquartered in Santa Fe, NM, received a $15 million bond loan to finance or refinance affordable single-family mortgages.</p></li><li><p>Housing Trust Silicon Valley, headquartered in San Jose, CA, received a $25 million bond loan to expand investment in and access to affordable multifamily rental housing.</p></li><li><p>Impact Seven, headquartered in Rice Lake, WI, received a $10 million bond loan to finance affordable rental housing, senior living facilities, small businesses, and commercial real estate projects.</p></li></ul><p>Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need—low-cost capital to spur economic growth and jump start community revitalization. Under the program, Qualified Issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue guaranteed bonds worth a minimum of $100 million in total. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities. </p><p>The program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, daycare or healthcare centers, and rural infrastructure projects, among other asset classes. As of August 31, 2017, $505 million in bond proceeds has been disbursed in 16 states and the District of Columbia.</p><p>For the first time, a private foundation provided a guarantee in support of an Eligible CDFI’s Bond Loan application, demonstrating strong collaboration between the public and private sector. The Kresge Foundation’s limited payment guarantee to Aura Mortgage Advisors showcases how CDFIs and foundations can leverage social investments to extend their impact through the CDFI Bond Guarantee Program. The Kresge Foundation has a $350 million commitment to social investing through 2020, including $150 million in guarantees.</p><p> <b>About the CDFI Fund </b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.3 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the BEA Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, guaranteed $1.36 billion in bonds through the CDFI Bond Guarantee Program, and awarded more than $171 million through the Capital Magnet Fund. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Mar2017.pdf" target="_blank">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>. </p>2017-09-27T04:00:00ZPress Releases

 

 

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