California Community Reinvestment Corporation (CCRC), a leading community development financial institution (CDFI) focused on affordable housing, announced a series of financing milestones that will expand its lending capacity by more than $120 million. The organization successfully closed a $114 million securitization of tax-exempt loans and secured $10.1 million in new capital from existing bank partners, strengthening its ability to finance affordable housing across the state.
This securitization is notable as it marks 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 demand from investors. Wells Fargo served as underwriter, while U.S. Bank acted as trustee and custodian. Unlike typical 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, a structure that has been used by only a handful of financial institutions since it emerged in 2019.
“The securitization reflects years of work to build the infrastructure and track record needed to access the public markets,” said Tia Boatman Patterson, President and CEO of CCRC. “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.”
In addition to the securitization, several existing bank partners have increased their commitments. Beneficial State Bank increased its loan pool contribution from $12.5 million to $15 million, an increase of $2.5 million, and also made a new $2.5 million commitment to CCRC’s Tax-Exempt Loan (TEL) pool. State Bank of India (California) increased its contribution from $1.9 million to $3 million, an increase of $1.1 million. Bank of America returned with a new $2 million commitment, and Wells Fargo provided a $2 million patient capital loan designed to support shorter-term bridge lending that helps preserve affordable housing.
These combined transactions will enable CCRC to continue funding permanent loans for affordable multifamily housing developments, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. The increased capital and lower cost of funds will allow CCRC to expand its impact in addressing California’s affordable housing crisis.
“Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars,” Patterson added. “The increased commitments demonstrate the trust we’ve built with our investors and their continued commitment to financing affordable housing.”
CCRC is California’s premier CDFI multifamily affordable housing lender, providing term financing for affordable multifamily rental housing. For more information, visit https://www.e-ccrc.org/.
