CDFI Fund Releases Interim Impact Assessment for Capital Magnet Fund

Awardees generate more than $1 billion of investment in affordable housing and associated community and economic development

The interim impact assessment for the Capital Magnet Fund, released today by the US Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund), found that the inaugural round of 23 Capital Magnet Fund awardees disbursed over $62.3 million and committed another $17.7 million through 2012. This has produced a total project benefit of over $1 billion in affordable housing and associated community and economic development projects. The 23 awardees leveraged the initial Capital Magnet Fund awards 12 times with other public and private investments in almost 7,000 affordable homes. Many Capital Magnet Fund investments are now providing housing for the nation's elderly, disabled, homeless, veterans, and others in great need.

Capital Magnet Fund award projects have been committed, started, or completed in 28 states, the District of Columbia, and Puerto Rico.

Of the total Capital Magnet Fund uses reported through 2012:

• 112 or 38 percent of projects involve multi-family projects, including new development and preservation (with and without rehabilitation). These projects received disbursements of $53 million of CMF awards and commitments for $14.5 million of CMF awards, generating a total of $957 million of investment.
• 62 or 21 percent of projects involve new single-family development and preservation (with and without rehabilitation). These projects received disbursements of $3.4 million of CMF awards and commitments for nearly $3.5 million of CMF awards, generating a total of $54.5 million of investment.
• 15 or 5 percent of projects involve community and economic development activities (including business finance, child care services, homeless counseling services, and healthcare). These projects used $5.5 million of Capital Magnet Fund awards, which generated a total of almost $53 million of investment.
• 105 or 36 percent of projects were for financial assistance to individual homebuyers. This assistance used $353,546 of CMF awards which generated a total of $4.2 million of investment.

On October 10, 2010, the CDFI Fund announced $80 million in Capital Magnet Fund awards to 23 Community Development Financial Institutions (CDFIs) and qualified nonprofit housing developers. The CDFI Fund received 230 applications from organizations serving 49 states, the District of Columbia, and Puerto Rico. The amount requested totaled more than $1 billion in grants. Of the 23 Capital Magnet Fund awardees, 13 were nonprofit housing organizations; nine were CDFIs; and one was a Tribal housing authority.

Through the Capital Magnet Fund, the CDFI Fund provides competitively awarded grants to CDFIs and qualified nonprofit housing organizations. Capital Magnet Fund awards can be used to finance affordable housing activities, as well as related economic development activities and community service facilities.

Awardees are required to leverage Capital Magnet Fund awards with other sources of capital. The leveraged amount is required to be at least 10 times the amount of the award. Awardees must commit their Capital Magnet Fund awards for use within two years, and must complete projects within five years.

Capital Magnet Fund Interim Impact Assessment Release through 2012

Please note that all data are subject to change based upon subsequent reporting.
 

• Impact Assessment

For more information about the Capital Magnet Fund, please visit www.cdfifund.gov/cmf. Additional CDFI Fund data releases and reports can be found at www.cdfifund.gov/research-data.