California Community Reinvestment Corporation (CCRC) has announced a series of financing milestones that significantly strengthen its capital for affordable housing lending, including a $114 million securitization of tax-exempt loans and $10.1 million in additional capital from existing bank partners. This marks the first time a Community Development Financial Institution (CDFI) has securitized tax-exempt loans in the public municipal market, a structure previously used only by banks or government entities.
The securitization, structured in two tranches, drew strong demand from investors. Wells Fargo served as underwriter, and U.S. Bank acted as trustee and custodian. Unlike most lenders that sell 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 approach, which requires both operational capacity and a credit rating, is rare among CDFIs nationally. It allows CCRC to recycle capital, lower its cost of funds, and expand affordable housing finance opportunities.
Alongside the securitization, several bank partners increased their commitments. Beneficial State Bank raised its loan pool contribution from $12.5 million to $15 million and made a new $2.5 million commitment to CCRC's Tax-Exempt Loan pool. State Bank of India (California) increased from $1.9 million to $3 million. Bank of America returned with a $2 million commitment, and Wells Fargo provided a $2 million patient capital loan to support bridge lending that preserves affordable housing.
Tia Boatman Patterson, President and CEO of CCRC, stated, "Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars. 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."
The combined effect of these transactions strengthens CCRC's ability to fund permanent loans for affordable multifamily housing developments across California, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. This development is crucial as affordable housing remains a pressing need statewide.
For more information about CCRC and its initiatives, visit their website at https://www.e-ccrc.org/.
