Community Housing Capital Announces $100 Million Multi-Bank Syndicated Credit Facility to Finance the Development and Preservation of Affordable Housing
Published: July 20, 2015 12:30 p.m. ET
DECATUR, GA, Jul 20, 2015 -- Community Housing Capital (CHC), a national community development financial institution intermediary that provides affordable housing financing exclusively to the NeighborWorks® Network, announced today the capitalization of an innovative $100 million multi-bank syndicated credit facility to finance the development and preservation of affordable housing. Together with CHC, Morgan Stanley led the creation of the facility, and other investors include Branch Banking and Trust Company (BB&T); Carver Federal Saving Bank; Charles Schwab; Deutsche Bank; HSBC; JPMorgan Chase; and Wells Fargo.
"The $100 million investment in Community Housing Capital by America's top financial institutions is a testament to the incredible work of the NeighborWorks® Network in developing and preserving affordable housing for low- and moderate-income working families and seniors in communities across the country. I can't say enough about the tremendous level of support and cooperation of the eight bank investors who represent the top brands in the financial services sector. Everyone rolled up their sleeves and structured a facility that will have a significant impact in providing affordable housing in both urban and rural markets," said Jack Gilbert, CEO of Community Housing Capital.
The syndicated facility, a result of two years of planning by Community Housing Capital and Morgan Stanley, provides a structure that enhances the efficiency of capital delivery from the capital markets to local community development organizations that develop affordable housing. The facility is exclusive to the more than 240 NeighborWorks® organizations operating in all 50 states and the District of Columbia.
Community Housing Capital will use the funding to originate collateralized loans for the acquisition/rehabilitation of operating affordable multifamily properties; pre-development and construction of multifamily projects; mini-perm financing for multifamily properties; land acquisition and the development of for-sale single family subdivisions.
The new facility offers greater flexibility, provides lenders more opportunities for shared-risk and allows for future expansion. In addition to the facility, Community Housing Capital will offer the syndicate lenders more opportunities to directly participate in larger loans within their respective local markets.
"At Morgan Stanley, we believe private capital plays a key role in strengthening underserved communities, and this $100 million credit facility will bring important new resources and opportunities to NeighborWorks® organizations working to provide and maintain affordable housing," said Mike Mantle, President of Morgan Stanley Community Investments, LLC. "Our partnership with CHC has been a strong one, and our efforts together have created an innovative financing structure that will deliver private capital efficiently and effectively to neighborhoods in need."
"This is a vitally important new financing tool for NeighborWorks® organizations, increasing our network's ability to serve more markets and consumers at a time when the supply of affordable and accessible rental housing and single-family homes is being stressed and even reduced," said Paul Weech, CEO and President of NeighborWorks® America.
"This multi-year credit facility that Community Housing Capital and Morgan Stanley have put in place is a long-term commitment from the private sector that will significantly leverage the annual grant investment NeighborWorks® America makes with CHC, and create and maintain affordable housing for families all over the country."
Community Housing Capital, a national community development financial institution intermediary, serves exclusively as a direct lender to the NeighborWorks® Network. Incorporated in 2000, Community Housing Capital is certified as a community development financial institution and a community development entity by the U.S. Treasury's Community Development Financial Institutions Fund. As an exclusive lender to the NeighborWorks® Network, Community Housing Capital provides both interim real estate development and preservation loans and permanent multi-family loans. Loans are underwritten with the flexibility required to finance complex transactions with multiple layers of subsidies. To fund its loan programs, Community Housing Capital uses grant funds from NeighborWorks® America, corporations and the CDFI Fund to significantly leverage private sector debt capital from socially-responsible investors. To date, Community Housing Capital has originated more than $400 million in loans to 125 NeighborWorks® organizations financing more than 13,500 units of affordable housing across 39 states and the District of Columbia and facilitating more than $1.5 billion in total real estate development. Community Housing Capital is headquartered in Decatur, Georgia. For more information, visit www.communityhousingcapital.org.
About NeighborWorks® America
For more than 35 years, NeighborWorks® America has created opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and safe, affordable rental housing. In 2014, NeighborWorks® America and its network created or sustained 35,000 jobs, and in the last five years, member organizations generated more than $24.5 billion of reinvestment in these communities. NeighborWorks® America is the nation's leading trainer of community development, financial capability and affordable housing professionals.