We are disappointed the Trump Administration’s FY 2018 budget proposes to eliminate federal funding for the Community Development Financial Institution (CDFI) Fund. Our designation as a CDFI allows Cinnaire to fulfill our mission to support community stabilization and economic development by leveraging this critically needed federal funding with private investment dollars. For every one dollar of CDFI Fund funding, CDFI’s can leverage ten dollars of additional capital. These investments support economically distressed communities, provide affordable housing, support small businesses, develop community facilities and spur economic growth through job creation. While traditional banks measure their success in profits, CDFIs are mission driven financial institutions that work to deliver responsible, affordable lending to low-income communities and disadvantaged people. Our success is measured not only in numbers, but by the impact we create to improve communities.
Cinnaire has provided more than 500 affordable housing and community development loans totaling nearly $400 Million. These loans have leveraged over $1.8 Billion in development costs, supporting nearly 15,000 jobs. 30,000 residents have been provided with quality, safe housing as a result. Additionally, in 2016, Cinnaire raised $214.2 Million in Low Income Housing Tax Credit (LIHTC) investments, supporting 2,588 units at 35 affordable housing developments. In our 25-year history, Cinnaire has raised $2.66 Billion in LIHTC investments, supporting 41,179 units at 676 affordable housing developments. These investments have leveraged over $4.6 Billion of housing development. Overall, our LIHTC investments have supported approximately 47,000 jobs and provided 89,000 residents with affordable housing.
The proposed cuts to the CDFI Fund are a direct hit to Americans living in some of our most economically distressed communities. Eliminating these funds will prevent CDFIs from delivering much needed resources to our most vulnerable population. Traditional banks and private financial institutions are not positioned or willing to fulfill the critical funding need that would be created under the proposed budget cuts. CDFIs are recognized for their ability to drive capital to neighborhoods and communities that traditional investors believe are high-risk investments.
At Cinnaire, we have always said It’s About the People. CDFIs Invest in People. CDFIs Invest in America. In the coming weeks, we will be reaching out to our partners, asking you to join Cinnaire, the Opportunity Finance Network and our partner CDFIs as we work together to urge Congress to support a $250 million budget for the CFDI Fund.
Please visit the following links for additional information on the proposed cuts to the CDFI Fund Funding:
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