California Community Reinvestment Corporation (CCRC) has announced a series of financing milestones that significantly bolster its capital for affordable housing lending throughout the state. The organization successfully closed a $114 million securitization of tax-exempt loans and secured $10.1 million in additional capital from existing bank partners, together increasing its lending capacity by more than $120 million. This marks the first time a Community Development Financial Institution (CDFI), rather than a bank or government entity, has completed such a securitization.
The securitization, structured in two tranches, drew strong demand from investors in the public municipal market. Wells Fargo served as underwriter, while U.S. Bank acted as trustee and custodian. Unlike most lenders, which sell or deliver loans to Fannie Mae or Freddie Mac at closing, CCRC retained these loans on its balance sheet before bringing them to the municipal market. This structure, used by only a handful of financial institutions since it emerged in 2019, requires both operational capacity and a credit rating, capabilities rare among CDFIs nationally.
Alongside the securitization, several existing bank partners have increased their commitments. Beneficial State Bank increased its loan pool contribution from $12.5 million to $15 million, an increase of $2.5 million, and separately made a new $2.5 million commitment to CCRC's Tax-Exempt Loan (TEL) pool. State Bank of India (California) increased its loan pool contribution from $1.9 million to $3 million, an increase of $1.1 million. Bank of America returned with a new $2 million commitment, and Wells Fargo provided a $2 million patient capital loan to support shorter-term bridge lending that helps preserve affordable housing.
“Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars,” said Tia Boatman Patterson, President and CEO of CCRC. “The securitization reflects years of work to build the infrastructure and track record needed to access the public markets. The increased commitments from our bank partners demonstrate the trust we've built with our investors and their continued commitment to financing affordable housing. Having the ability to recycle capital, lower our cost of funds, and continue expanding affordable housing finance opportunities is critical for our development sponsors and the California communities they serve.”
The combined effect of these transactions strengthens CCRC's ability to continue funding permanent loans for affordable multifamily housing developments across the state, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. This innovative financial approach allows CCRC to recycle capital and reduce costs, thereby expanding the reach of its mission. As a leading CDFI in California, CCRC remains dedicated to tackling the affordable housing crisis by providing term financing for affordable multifamily rental housing. For more information about CCRC and its initiatives, visit https://www.e-ccrc.org/.
