California Community Reinvestment Corporation (CCRC), a prominent Community Development Financial Institution (CDFI) focused on multifamily affordable housing, has announced a significant expansion of its lending capacity through a combination of a $114 million securitization and $10.1 million in additional capital from existing bank partners. This dual transaction strengthens CCRC's ability to finance affordable housing developments for working families, seniors, veterans, and individuals at risk of homelessness throughout California.
The securitization, which closed successfully, marks a historic milestone: it is the first time a CDFI, rather than a bank or government entity, has completed a securitization of this kind 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 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 previously used by only a handful of financial institutions since its emergence in 2019. This approach requires both substantial operational capacity and a strong credit rating, capabilities that are rare among CDFIs nationally.
“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 of 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) raised its loan pool 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.
“Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars,” Patterson added. “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 significantly boosts CCRC's capital base, enabling it to continue funding permanent loans for affordable multifamily housing developments across the state. This is particularly vital in a state grappling with a severe housing crisis, where access to low-cost capital for affordable housing projects is limited. By leveraging the municipal market and strengthening partnerships with banks, CCRC is setting a precedent for other CDFIs to follow, potentially unlocking new sources of funding for affordable housing nationwide.
For more information about CCRC and its initiatives, visit https://www.e-ccrc.org/.
