California Community Reinvestment Corporation (CCRC), a leading Community Development Financial Institution (CDFI) focused on affordable multifamily housing, announced a series of financing milestones that collectively increase its lending capacity by more than $120 million. The centerpiece is a $114 million securitization of tax-exempt loans, marking the first time a CDFI, rather than a bank or government entity, has completed such a transaction in the public municipal market. The deal was structured in two tranches and 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 for securitization. This structure, which has been utilized by only a handful of financial institutions since its emergence in 2019, requires significant operational capacity and a strong credit rating—capabilities that are rare among CDFIs nationally. By executing this securitization, CCRC can recycle capital, lower its cost of funds, and continue expanding affordable housing finance opportunities across California.
Alongside the securitization, several existing bank partners have increased their commitments, bringing an additional $10.1 million in capital. Beneficial State Bank raised its loan pool contribution from $12.5 million to $15 million and separately committed $2.5 million to CCRC's Tax-Exempt Loan (TEL) pool. State Bank of India (California) increased its contribution from $1.9 million to $3 million, while Bank of America returned with a new $2 million commitment. Wells Fargo provided a $2 million patient capital loan to support shorter-term bridge lending that preserves 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. 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, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness throughout California. This innovative securitization paves the way for other CDFIs to access public capital markets, potentially unlocking new sources of funding for affordable housing nationwide.
For more information about CCRC and its initiatives, visit https://www.e-ccrc.org/.
