Over $1.6 Billion Guaranteed for Projects in Distressed Communities since Establishment of Program
Washington, DC U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced today the approval of a $100 million guarantee under the Community Development Financial Institutions (CDFI) Bond Guarantee Program. The guarantee will be issued on behalf of three Eligible CDFIs under the fiscal year (FY) 2019 round of the program. Over $1.6 billion has now 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.
"The CDFI Bond Guarantee Program provides long-term capital critical to CDFIs' work in developing high-impact community development initiatives," said CDFI Fund Director Jodie Harris. "CDFIs utilize this innovative program to finance a range of large-scale projects in distressed areas and have included, among other things, affordable housing, charter schools, community and manufacturing facilities, as well as health care centers."
The Opportunity Finance Network will issue $100 million in bonds on behalf of the following three Eligible CDFIs:
Community Loan Fund of New Jersey, Inc., headquartered in New Brunswick, NJ, will receive a $25 million bond loan to finance rental housing, charter schools, daycare centers, not-for-profit organizations, small businesses and commercial real estate in low-income and underserved areas in New Jersey.
Federation of Appalachian Housing Enterprises, Inc., headquartered in Berea, KY, will receive a $20 million bond loan to finance affordable rental housing, healthcare facilities, senior living facilities, not-for-profit organizations, small businesses and commercial real estate in the greater Appalachian region.
Greater Minnesota Housing Fund, headquartered in St. Paul, MN, will receive a $55 million bond loan to finance affordable rental housing projects in Minnesota's underserved communities.
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. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to invest in distressed communities. For more information on the CDFI Bond Guarantee Program, visit the CDFI Fund website at www.cdfifund.gov/bond.
About the CDFI Fund
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 $57.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, guaranteed $1.61 billion in bonds through the CDFI Bond Guarantee Program, and awarded more than $434 million through the Capital Magnet Fund.
To learn more about the CDFI Fund and its programs, please view the Fact Sheet or visit the CDFI Fund's website at www.cdfifund.gov.
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