The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) awarded 48 organizations $175.35 million today to finance the development of affordable housing and community facilities in low-income communities. These awards were made through the fiscal year (FY) 2020 round of the Capital Magnet Fund, and will support financing for the preservation, rehabilitation, development or purchase of affordable housing for low-income communities; as well as related economic development and community service facilities such as day care centers, workforce development centers and health care clinics.
"I am very proud to present the largest round of Capital Magnet Fund awards in the history of the program,” said CDFI Fund Director Jodie Harris. “Not only is this the largest dollar amount ever awarded through the program, it is also the largest number of awarded organizations in a single round, leading to more essential investments in affordable housing and related community services across the country.”
The awardees are required to leverage their awards with other private and public investment by at least 10 to 1, guaranteeing that a minimum of $1.75 billion will be invested in eligible projects across the United States. For the FY 2020 round, the awardees anticipate attracting nearly $5.3 billion with their Capital Magnet Fund awards, including more than $4.2 billion in private investment.
The 48 awardees will collectively serve all 50 states, the District of Columbia, and Puerto Rico. Six of these awardees, or 13 percent, will invest at least half of their award dollars in Rural Areas. Of the 48 awardees, 27 are Community Development Financial Institutions (CDFIs) and 21 are non-profit housing organizations. The 48 awardees were selected after a merit-based competitive review of applications submitted from a total of 137 organizations that requested more than $642.2 million from the Capital Magnet Fund for the FY 2020 round.
FY 2020 Capital Magnet Fund Award Resources
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $3.9 billion to CDFIs, community development organizations, and financial institutions through the Bank Enterprise Award Program, the Capital Magnet Fund, the Community Development Financial Institutions Program, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for over $1.7 billion through the CDFI Bond Guarantee Program.
To learn more about the CDFI Fund and its programs, please visit the CDFI Fund’s website at www.cdfifund.gov.">