Community Housing Capital (CHC) is proud to announce its successful first-time application and allocation of $30 million in New Markets Tax Credits (NMTC) from the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund. As a qualified CDFI and Community Development Entity (CDE), CHC provides flexible and patient loan capital to NeighborWorks® organizations (NWOs) that create affordable housing for low to moderate-income persons and works to stabilize and rebuild disenfranchised communities. "We’re excited that the CDFI Fund saw the potential for our proposal to help satisfy an insatiable demand for affordable for-sale housing. We look forward to using NMTC as a significant tool to address financing gaps presented as our NeighborWorks non-profits work to develop homeownership projects," said Cindy Holler, CEO of Community Housing Capital.
CHC will use its NMTC allocation to fill financing gaps with a flexible term equity equivalent debt product that will enable its non-profit customers to scale their homeownership programs. Many NWOs submitted project pipelines in anticipation of a CHC award and the possibility of making the final selection of high-impact, for-sale housing projects.
“The NeighborWorks network has always been committed to homeownership as a method to create equity for families and communities. The NMTC had been successfully used to support single-family homeownership by a few NWOs in the past. Now we're excited to offer this equity-like product on a larger scale to our network customers," said Holler. “With a very long list of highly-impactful, shovel-ready projects already in line, our next challenge is selecting from the equally-worthy projects that will have to wait for a potential new award next year.“ To ensure that selected projects target areas of higher distress, CHC will evaluate each project with the pre-loan impact assessment tool of its Impact Measurement and Management System (IMM) overlaid with its NMTC Scoring Criteria.
“CHC is always on a quest to find new capital, and NMTC is a promising new tool to subsidize affordable housing in low-income communities across the country,” Holler added. "To meet the demand for more housing, we’ll continuously look for tools where we can fill financing gaps.”
About Community Housing Capital
Community Housing Capital has, through its lending activity, created or preserved nearly 20,600 units of affordable housing and facilitated $2.7 billion in total development during its 21-year history. Community Housing Capital is headquartered in Decatur, Georgia. View Community Housing Capital’s 20-Year Anniversary Report and for more information, visit https://www.communityhousingcapital.org.