Announcement Marks Largest Bond Issuance in Program’s History
On September 30, the U.S. Department of the Treasury’s CDFI Fund announced that Treasury has agreed to issue three guarantees totaling $355 million under the CDFI Bond Guarantee Program. The guarantees will be issued on behalf of five eligible CDFIs under the program’s fiscal year (FY) 2022 round. A total of more than $2.17 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program. which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.
“Today’s announcement marks a banner year for the CDFI Bond Guarantee Program,” said CDFI Fund Director Jodie Harris. “The $355 million in bonds issuances announced today is the largest in the program’s history. Today is also a good point in time to reflect on the significant impact this important long-term capital is making in our nation’s low-income communities – of the more than $2.17 billion approved, more than $1.4 billion in cumulative investments have already been disbursed through this program since its launch in 2013.”
The FY 2022 program participants include:
- Community Reinvestment Fund, USA will issue a $100 million bond on behalf of Low Income Investment Fund (LIIF) to fund charter schools, rental housing, daycare centers, and other eligible uses.
- InBank will issue a $125 million bond on behalf of Capital Plus Financial to provide single-family mortgage financing and property rehabilitation to low-income Hispanic communities in the state of Texas.
- Opportunity Finance Network (OFN) will issue $130 million in bonds on behalf of the following three CDFIs:
- Community Ventures (CVEN) will receive a $10 million bond loan to fund small businesses and single-family mortgages.
- Charter School Development Corporation will receive a $70 million bond loan to fund charter schools.
- Greater Minnesota Housing Fund (GMHF) also will receive a $50 million bond loan to fund rental housing in the state of Minnesota.
Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, daycare or healthcare centers, and rural infrastructure projects, among other asset classes.
Read the full CDFI Fund announcement.