A National Community Development Financial Institution (CDFI)Flexible Loan Capital Customized to Create Affordable Housing

$10 million LOC from Community Housing Capital Preserves Affordability for NOAH Residents

In April 2021, Community Housing Capital approved a revolving $10 million line of credit (LOC) to Avenue Community Development Corporation (Avenue CDC). The loan enables them to compete with private-sector, all-cash offers to purchase multifamily projects that target residents with low- and very-low incomes. Avenue CDC plans several improvement projects for its first LOC draw by acquiring an 84-unit Naturally Occurring Affordable Housing (NOAH) property. NOAH is the term for existing multifamily rental properties that are affordable without public subsidy to low-income households.

The $4.95 million acquisition of the La Casita Homes in Houston, Texas, will enable Avenue CDC to preserve the homes' affordability while making needed improvements to the 24 duplex-style buildings and 36 single-family homes. Without the intervention of Avenue CDC, these NOAH homes would likely have been lost through redevelopment or disrepair, further shrinking the supply of affordable housing in the Houston area.