OAKLAND, CA - October 14, 2010: The Community Builders, Inc. was informed on October 14, 2010 that it will receive $5,000,000 in funding from the US Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) as part of the inaugural round of the Capital Magnet Fund (CMF) program. Only 10% of CMF applicants were awarded funding.
The CMF program was created to support the preservation, rehabilitation, and purchase of affordable housing for low-income communities and community service facilities. Capital Magnet Fund awards can be used to finance affordable housing activities as well as related economic development activities and community service facilities. Awardees may utilize financing tools such as loan loss reserves, loan funds, risk-sharing loans, and loan guarantees to produce eligible activities whose aggregate costs are at least ten times the size of the award amount.
The award was based on The Community Builders’ application submitted in response to the CMF notice of funding availability issued by the CDFI Fund on March 4, 2010. In its application, The Community Builders proposed using the award to finance an Equity Guaranty Fund that will allow it to raise equity and bridge loans for several low-income developments that have been adversely affected by the contraction of the equity markets.
CDFI Capital Magnet Fund award announcement: