|Yesterday, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced the recipients of the FY 2021 Capital Magnet Fund awards. Twenty-seven nonprofit housing organizations — including five HFAs — and 32 CDFIs will receive a total of $336.4 million for the development and preservation of affordable housing targeted to low-, very low-, and extremely low-income families. Award recipients also may use the grants to support economic development and community service facilities that aim to revitalize distressed communities.
Awardees are required to leverage their grants by a minimum of 10:1. The CDFI Fund predicts these Capital Magnet Fund awards will generate nearly $12.4 billion in public and private investment for affordable housing and economic development in communities most in need across the country. The 59 organizations — representing 49 states and territories — chosen to receive grants plan to develop more than 41,100 affordable housing units, including 38,700 rental units and 2,400 units for homeownership. Of the units, 97 percent will be designated for low-income families at 80 percent of area median income (AMI) or less. Sixty-one percent of the rental units will be designated for very low-income families at 50 percent AMI or less.
The five HFAs selected — Colorado Housing and Finance Authority, MassHousing, Rhode Island Housing, Vermont Housing Finance Agency, and Wisconsin Housing and Economic Development Authority — will receive a total of $44.5 million in grants. The full list of award recipients is available here. A document outlining CDFI Fund’s review process for selecting the recipients is available here.