September 30, 2013
US Treasury approves Community Reinvestment Fund, USA as Qualified Issuer for CDFI Bond Guarantee Program
CRF partners with The Community Development Trust, LP to accelerate investment in America's low-income and economically distressed communities.
MINNEAPOLIS - September 30, 2013 - Community Reinvestment Fund, USA (CRF), a Minneapolis-based national non-profit and Community Development Financial Institution (CDFI), has been approved by the Community Development Financial Institutions Fund (CDFI Fund) of the U.S. Department of the Treasury (Treasury) to serve as a Qualified Issuer under the CDFI Bond Guarantee Program. During the first round of the program, CRF will issue $125 million in bonds on behalf of The Community Development Trust, LP (CDT), a well respected CDFI that has helped preserve or add more than 32,500 affordable housing units nationwide.
The CDFI Bond Guarantee Program was enacted through the Small Business Jobs Act of 2010 and will help CDFIs inject new and substantial capital into our nation's most distressed communities. CDFIs support communities by providing direct access to capital that would otherwise not be available. The CDFI Bond Guarantee Program offers an unprecedented opportunity to allow CDFIs to scale their lending activities, and to provide access to fixed rate, long-term capital.
"We are well positioned to use our years of experience as an intermediary to the secondary market to help CDFIs access the long-term, fixed rate capital they need to increase their direct lending in underserved urban and rural areas," said Frank Altman, President and CEO of CRF. "CDT is a first in class CDFI. We look forward to collaborating with them, and other CDFI partners in the future to improve the lives of disadvantaged people and strengthen distressed communities through this innovative financing tool."
Qualified Issuers, such as CRF, are authorized to issue bonds to Eligible CDFIs, such as CDT, subject to each issue's approval by the Treasury. Bonds must be in minimum denominations of $100 million and must be used to make loans to Eligible CDFIs for community and economic development purposes, including financing activity that provides affordable housing to low-income people.
"We are proud to have partnered with CRF on this endeavor," said Joe Reilly, President and CEO of CDT. "The organization's 25 year commitment to helping underserved communities perfectly aligns with our mission, and we look forward to preserving and expanding the supply of affordable housing with the funding secured through this partnership."
CRF is a mission-driven, non-profit organization with a 25-year history of collaborating with other organizations to provide access to capital to America's underserved communities.
For more information: http://www.crfusa.com/cdfi_bond_guarantee_program
Posted by: CRFUSA