California Community Reinvestment Corporation (CCRC), a leading Community Development Financial Institution (CDFI) focused on affordable housing, announced a series of financing milestones that strengthen its capital position by more than $120 million. The transactions include a $114 million securitization of tax-exempt loans and $10.1 million in new capital from existing bank partners. These moves enable CCRC to expand its lending for affordable multifamily housing throughout California, benefiting working families, seniors, veterans, and individuals at risk of homelessness.
The securitization, which closed successfully, marks a historic achievement: it is the first time a CDFI, rather than a bank or government entity, has completed a securitization of tax-exempt loans in the public municipal market. The deal was structured in two tranches and drew strong investor demand. Wells Fargo served as underwriter, while U.S. Bank acted as trustee and custodian.
Unlike conventional 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 structure, which has been utilized by only a handful of financial institutions since its emergence in 2019, requires significant operational capacity and a credit rating—capabilities that are rare among CDFIs nationally.
In addition to the securitization, CCRC's existing bank partners have increased their commitments, contributing $10.1 million in new capital. 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) increased its loan pool contribution from $1.9 million to $3 million, an increase of $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.
Tia Boatman Patterson, President and CEO of CCRC, emphasized the significance of these developments: "Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars," she said. "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 strengthens CCRC's ability to fund permanent loans for affordable multifamily housing developments across the state. By accessing the public markets and securing additional bank capital, CCRC can recycle capital more efficiently, reduce its cost of funds, and expand its lending capacity. This is particularly crucial in California, where the affordable housing crisis continues to impact vulnerable populations.
CCRC's innovative approach demonstrates how CDFIs can leverage financial markets to amplify their impact. The success of this securitization may encourage other CDFIs to explore similar strategies, potentially increasing the flow of capital into affordable housing nationwide. For CCRC, the new capital and reduced funding costs will allow it to support more development projects, ultimately helping to create and preserve low-cost housing for those who need it most.
