California CDFI Expands Affordable Housing Lending with Historic Securitization and New Bank Capital

California Community Reinvestment Corporation (CCRC) announced a significant expansion of its lending capacity, securing more than $120 million through a groundbreaking securitization and additional capital from existing bank partners. The Glendale-based nonprofit, a Community Development Financial Institution (CDFI) focused on affordable multifamily housing, completed a $114 million securitization of tax-exempt loans, marking the first time a CDFI has undertaken such a transaction in the public municipal market. This move, coupled with $10.1 million in new commitments from banks, strengthens CCRC's ability to fund affordable housing developments for working families, seniors, veterans, and those at risk of homelessness across California.

The securitization, structured in two tranches, attracted strong investor demand, with Wells Fargo serving as underwriter and U.S. Bank as trustee and custodian. Unlike traditional lenders that sell loans to government-sponsored enterprises like Fannie Mae or Freddie Mac, CCRC retained the loans on its balance sheet before bringing them to the municipal market. This structure, which has been used by only a few financial institutions since 2019, requires significant operational capacity and a strong credit rating—capabilities that are rare among CDFIs. By accessing the public markets, CCRC can recycle capital and lower its cost of funds, enabling it to expand its lending programs and support more affordable housing projects.

In addition to the securitization, several of CCRC's bank partners increased their commitments. Beneficial State Bank raised its loan pool contribution from $12.5 million to $15 million, and separately added a new $2.5 million commitment to CCRC's Tax-Exempt Loan (TEL) pool. State Bank of India (California) boosted its contribution from $1.9 million to $3 million, while Bank of America returned to the loan pool with a $2 million commitment. Wells Fargo provided a $2 million patient capital loan to support shorter-term bridge lending that helps preserve affordable housing. These commitments reflect the confidence that banks have in CCRC's mission and its track record of successfully financing 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 CCRC. “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 impact of these transactions enhances CCRC's ability to provide permanent loans for affordable multifamily housing developments throughout the state. As California grapples with a severe housing shortage, CCRC's innovative approach to financing offers a model for other CDFIs seeking to scale their impact. By leveraging the public markets and strengthening partnerships with banks, CCRC is positioning itself to play a pivotal role in addressing the state's affordable housing crisis. For more information about CCRC and its programs, visit https://www.e-ccrc.org/.