California Community Reinvestment Corporation (CCRC), a leading Community Development Financial Institution (CDFI) focused on affordable multifamily housing, has announced a series of financing milestones that significantly bolster its capacity to fund affordable housing projects throughout the state. The organization successfully closed a $114 million securitization of tax-exempt loans and secured an additional $10.1 million in capital from existing bank partners, bringing the total increase in lending capacity to more than $120 million.
The securitization, which closed in the public municipal market, marks the first time a CDFI—rather than a bank or government entity—has completed such a transaction. Structured in two tranches, the deal drew strong demand from investors, 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, a structure that has been utilized by only a handful of financial institutions since its emergence in 2019.
Executing this type of transaction requires both operational capacity and a credit rating, capabilities that are rare among CDFIs nationally. By accessing the public markets, CCRC can recycle capital, lower its cost of funds, and continue expanding affordable housing finance opportunities, which is critical for its development sponsors and the California communities they serve.
Alongside the securitization, several of CCRC’s 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 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.
“Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars,” said Tia Boatman Patterson, President and CEO of California Community Reinvestment Corporation. “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 continue funding permanent loans for affordable multifamily housing developments across the state, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. This development is particularly significant as California faces a severe affordable housing crisis, with demand far outstripping supply.
For more information about CCRC and its initiatives, visit their website.
