The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced an agreement to issue three guarantees worth $498 million under the CDFI Bond Guarantee Program, the largest issuance in the program’s history.
The CDFI Bond Guarantee program provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities, and the guarantees will be issued on behalf of 10 Eligible CDFIs under the fiscal year (FY) 2024 program round. Nearly $3 billion has been guaranteed since the program began in 2010.
“Community Development Financial Institutions play an essential role to help businesses and organizations get off the ground and expand all over the country. Today’s historic announcement will increase their access to capital to help realize projects that expand housing supply, grow small businesses, and ensure access to health care and child care,” said U.S. Secretary of the Treasury Janet L. Yellen. “Under the Biden-Harris Administration, we’ve made access to capital a top priority and worked with the CDFI Fund to significantly expand its efforts to help all communities grow and thrive.”
The FY 2024 program participants include:
Opportunity Finance Network will issue $173 million in bonds on behalf of the following seven Eligible CDFIs that will use funding for rental or owner-occupied housing, commercial real estate, day care centers, small businesses, and nonprofit organizations. Uses for housing funding include construction lending, mortgages, refinancing, and financing the development of rental housing and homeownership.
- Renaissance Community Loan Fund, Inc. (RCLF) will receive a $20 million bond loan to fund owner-occupied homes in Mississippi and Alabama. RCLF is headquartered in Gulfport, Mississippi, and is a first-time recipient of a bond loan.
- Greater Minnesota Housing Fund (GMHF) will receive a $25 million bond loan to fund rental housing in Minnesota. GMHF’s home office is in Saint Paul, Minnesota. GMHF has received three prior bond guarantees in 2017, 2019, and 2022.
- Community Loan Fund New Jersey (LFNJ) will receive a $33 million bond loan to fund rental housing and commercial real estate, as well as fund small businesses, daycare centers, nonprofit organizations, and charter schools. LFNJ is headquartered in New Brunswick, New Jersey. LFNJ has received two prior bond loans in 2015 and 2019.
- Florida Community Loan Fund (FCLF) will receive a $30 million bond loan to fund rental housing and commercial real estate, health care facilities like urgent care centers and physicians’ offices, nonprofit organizations, and rental housing within the state of Florida. FCLF is headquartered in Orlando, Florida, and received one prior bond loan in 2017.
- Homewise will receive a $15 million bond loan to build commercial real estate and owner-occupied homes within the state of New Mexico, primarily Santa Fe and Albuquerque. Homewise is headquartered in Santa Fe, New Mexico, and received one prior bond loan in 2017.
- Community First Fund (CFF) will receive a $20 million bond loan to build rental housing and commercial real estate, as well as fund small businesses, daycare centers, nonprofit organizations, and charter schools in Pennsylvania. CFF is headquartered in Lancaster, Pennsylvania, and received one prior bond loan in 2017.
- Nonprofit Finance Fund (NFF) will receive a $30 million bond loan to build rental housing and commercial real estate, as well as fund small businesses, daycare centers, nonprofit organizations, and charter schools. NFF is headquartered in New York City with geographic presence in New York, Philadelphia, Los Angeles, Boston, and Oakland. NFF is a first-time applicant to the bond guarantee program.
Community Reinvestment Fund, USA (CRF) will issue a $150 million bond on behalf of the Community Development Trust (CDT). CDT plans to use the bond proceeds to fund charter schools and rental housing throughout the United States. CDT’s home office is in New York City and has received one prior bond issue in 2013.
CRF will also issue $175 million in bonds on behalf of the following two Eligible CDFIs:
- The Reinvestment Fund (TRF) will receive a $100 million bond loan to fund rental housing, commercial real estate, day care centers, health care facilities, nonprofit organizations, small businesses, and charter schools in Philadelphia, Atlanta, and Baltimore. TRF is headquartered in Philadelphia, Pennsylvania. TRF has received two prior bond issues in 2014 and 2016.
- IFF will receive a $75 million bond loan to fund rental housing, commercial real estate, day care centers, health care facilities, nonprofit organizations, small businesses, and charter schools in Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Ohio, and Wisconsin. IFF is headquartered in Chicago, Illinois, and has received one prior bond issue in 2014.
Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need—low-cost, long-term 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 Eligible CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities.
The program enables Eligible CDFIs to execute large-scale projects, including the development of housing, commercial real estate, charter schools, daycare or health care centers, and rural infrastructure projects, among other asset classes. As of July 31, 2024, more than $1.7 billion in bond proceeds has been disbursed in 32 states and the District of Columbia.