The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 48 organizations $246.4 million for the development of affordable housing and community facilities serving low-income families and communities that need additional investment, the department announced.
These awards were made through the fiscal year 2024 round of the Capital Magnet Fund (CMF). The awards support financing for the preservation, rehabilitation, development, or purchase of affordable housing, as well as related economic development facilities, including day care centers, workforce development centers, and health care clinics.
“[These] awards will increase affordable housing supply and expand access to childcare and healthcare for families across America,” Secretary of the Treasury Janet Yellen said. “These awards are projected to leverage nearly $9 billion in private and public sector resources to spur development in communities that need additional investment to create opportunities for communities to get ahead.”
Award recipients are required to leverage their awards with other private and public investment by at least 10-to-one, the Treasury stated. The department added this round’s awardees anticipate leveraging more than $6.8 billion in private investment.
The 48 awardees will collectively serve 50 states, the District of Columbia, Guam, and Puerto Rico. In all, 25 (52 percent of the total awardees) plan to invest a portion of their award dollars in rural areas, with 12 of those organizations planning to invest at least 25 percent of their award dollars in rural areas. Of the total awardees, 25 are CDFIs and 23 are nonprofit housing organizations. The awardees were selected through a competitive review of applications from 136 organizations requesting more than $1.06 billion.
The Treasury stated it anticipates more than 26,400 affordable housing units, including more than 25,600 rental units and more than 750 homeownership units, to be created or supported using the funds issued. Since its establishment by the Housing and Economic Recovery Act of 2008, the CMF has created over 63,000 affordable homes, including more than 55,600 rental housing units and 7,400 homeowner-occupied units.