California Community Reinvestment Corporation (CCRC) has announced a series of financing milestones that will substantially increase its capital for affordable housing lending throughout California. The organization successfully closed a $114 million securitization of tax-exempt loans and received $10.1 million in additional capital from existing bank partners. This combined $124.1 million infusion strengthens CCRC's ability to fund permanent loans for affordable multifamily housing developments, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness.
The securitization is a landmark achievement, marking the first time a Community Development Financial Institution (CDFI) has completed such a transaction in the public municipal market. Unlike typical lenders that 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, which has been used by only a handful of financial institutions since it emerged in 2019, requires both operational capacity and a credit rating—capabilities that are rare among CDFIs nationally. The deal was structured in two tranches and drew strong demand from investors. Wells Fargo served as underwriter, while U.S. Bank acted as trustee and custodian.
Alongside the securitization, several of CCRC's 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 to CCRC's loan pool with a new $2 million commitment. Wells Fargo provided a $2 million patient capital loan, designed 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 enhances CCRC's financial position, allowing it to recycle capital and lower its cost of funds. This is vital for expanding affordable housing finance opportunities in a state grappling with a severe housing crisis. By accessing the public markets and securing additional bank capital, CCRC is better equipped to meet the growing demand for affordable housing, ultimately benefiting vulnerable populations across California.
