Initiative Capital’s Revolving Loan Fund recently received $1.25 million in funding from the U.S. Department of the Treasury’s CDFI Fund. This grant, which was made through the CDFI Fund’s Capital Magnet Fund Program, will provide a much-needed source of capital for affordable housing projects across the state.
The investment comes at a time when there is a growing need for affordable housing in the state’s urban and rural communities. As cities like Charlotte, Durham, and Raleigh grow, so do the prices all residents pay for their housing, eventually leading to social inequities that fall along race and income lines. This trend is not limited to our state’s urban communities, though: rural Camden County is the state’s second most expensive rental market, only exceeded by coastal Currituck County.
Initiative Capital’s Revolving Loan Fund will provide gap, bridge, and permanent financing for new construction and rehabilitation affordable housing projects, as well as related economic development projects, with a primary but not exclusive focus on a 50-county FEMA-declared disaster area affected by Hurricane Matthew in 2016. Loan recipients will include affordable housing developers seeking to compete with equity developers, low-volume landlords working to rehabilitate existing properties, and community-based organizations needing to improve or acquire facilities.
“Treasury’s investment in Initiative Capital is an investment in our state’s most vulnerable communities. Through our newly created Revolving Loan Fund, Initiative Capital will leverage the CMF award with significant amounts of private capital. As a result, we will be able to provide more than $10 million in new loans and investments to expand the supply of affordable housing and increase economic opportunity in the neighborhoods and communities that need it the most.” -Tara Kenchen, President & CEO, Initiative Capital
The Capital Magnet Fund is one of the CDFI Fund’s most competitive funding programs. In the recent round of funding, more than 120 organizations applied, requesting more than $540 million in funding. Initiative Capital was one of only 25 certified CDFIs to receive funding. This is a recognition of Initiative Capital’s community impact, financial performance, and capacity to quickly deploy capital to meet critical housing and community development needs.