The U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund has awarded Cinnaire $4.8 million in Capital Magnet Fund grants. The competitive grants are awarded to CDFIs and nonprofit housing organizations to develop and rehabilitate affordable housing for low-, very-low and extremely low-income families. Cinnaire was one of 48 organizations nationwide to receive a Capital Magnet Fund award from among the 137 applicants.
These awards were made through the FY 2020 round of the Capital Magnet Fund, and will support financing for the preservation, rehabilitation, development or purchase of affordable housing for low-income communities as well as economic development activities and community service facilities. The Capital Magnet Fund helps to create and preserve affordable housing for low-income families and provides financing to economically distressed communities.
“The Capital Magnet Fund provides financing essential to leveraging private capital to transform underserved communities. The pandemic has caused an increasing number of low-income families facing job loss and income reduction, putting them at an even greater risk of housing instability. This award will advance affordable housing options throughout Cinnaire’s footprint, supporting our ability to address the extraordinary need families are facing during this crisis”. – Donsia Strong Hill, Cinnaire Senior Vice President, Foundation and Corporate Development
The CDFI Fund invests in and builds the capacity of CDFIs to serve low-income people and communities lacking access to affordable financial products and services. Organizations that receive CDFI Capital Magnet Fund awards are required to produce housing and community development investments at least ten times the size of the award amount, generating a multiplier effect that means that more low-income people and communities nationwide will have housing options within their financial reach.
Since 2011, Cinnaire has received a total of $25.4 million in Capital Magnet Fund awards. Cinnaire used a previous CMF award to fund $206,000 in pre-development expenses for Mack/Alter Homes Community, a new 14-unit supportive housing project in Detroit that was developed with the support of 4% MSHDA tax Exempt Bonds by Nova Development Group of Detroit. The 4% LIHTC investment was coupled with HOME funds from the City of Detroit, Gap financing from MSHDA , a general partner contribution, and a deferred developer fee. The Detroit Housing Commission provided 14 Section 8 project-based vouchers for Detroit area families with disabilities. The owner will also provide supportive services to the tenants through the Detroit Central City Community Mental Health, Inc.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $3.9 billion to CDFIs, community development organizations, and financial institutions through the Bank Enterprise Award Program, the Capital Magnet Fund, the Community Development Financial Institutions Program, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $61 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for over $1.7 billion through the CDFI Bond Guarantee Program.
To learn more about the CDFI Fund and its programs, please visit the CDFI Fund’s website at www.cdfifund.gov.