California Community Reinvestment Corporation (CCRC), a leading Community Development Financial Institution (CDFI) focused on multifamily affordable housing, announced a series of financing milestones that will increase its lending capacity by more than $124 million. The transactions include a groundbreaking $114 million securitization of tax-exempt loans—the first such deal by a CDFI in the nation—and $10.1 million in new capital commitments from existing bank partners.
The securitization, which closed successfully, marks a historic achievement: never before has a CDFI, rather than a bank or government entity, completed a securitization of this kind in the public municipal market. Structured in two tranches, the deal drew strong investor demand, with Wells Fargo serving as underwriter and U.S. Bank acting as trustee and custodian. Unlike most 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—a structure used by only a handful of financial institutions since it emerged in 2019. This transaction required both operational capacity and a strong credit rating, capabilities that are rare among CDFIs nationally.
In addition to the securitization, CCRC received $10.1 million in new capital from existing bank partners, demonstrating their continued confidence in the organization. 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) boosted its contribution from $1.9 million to $3 million, adding $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 significantly strengthens CCRC's ability to fund permanent loans for affordable multifamily housing developments across the state, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. By accessing the public markets and securing additional capital, CCRC can recycle funds, reduce its cost of capital, and expand its lending to meet California's pressing affordable housing needs.
This milestone not only enhances CCRC's capacity but also sets a precedent for other CDFIs to potentially follow, demonstrating that community development lenders can successfully tap into capital markets to scale their impact. As affordable housing remains a critical issue nationwide, innovative financing mechanisms like this securitization could play a pivotal role in addressing the shortage of low-cost housing.
