The Ministry of Finance announces support for the development of 26,000 affordable homes
The US Department of the TreasuryThe Community Development Financial Institutions (CDFI) Fund announced Wednesday that it has awarded 48 organizations a total of $246.4 million to develop affordable housing and community facilities.
The funding is expected to result in approximately 26,400 new housing units, which will primarily serve families and low-income communities that “require additional investment,” the ministry said in its report. announcement. Of this total, 750 will be “homeownership units,” while the remaining 25,600 will be rental units.
The awards, distributed over the Capital Magnet Fund (CMF) fiscal year (FY) 2024, will “support financing for the preservation, rehabilitation, development or acquisition of affordable housing, as well as related economic development facilities, including day care facilities.” care centers, workforce development centers, and health care clinics.”
A total of 48 recipients have been named, which will meet needs in all 50 states, the District of Columbia and U.S. territories including Guam and Puerto Rico.
The Treasury Department noted that recipients “are required to leverage their rewards with other private and public investments on a ratio of at least 10 to one.” The recipients announced this week that they will raise approximately $6.8 billion in private capital.
More than half (52%) of these organizations said they plan to focus some of their funding on rural areas, with twelve of them pledging to spend at least 25% of their grants on locations with more limited infrastructure than urban or suburban areas. Of the 48 recipients, 25 are CDFIs and 23 are nonprofit housing organizations.
“Today’s awards will increase the supply of affordable housing and increase access to child care and health care for families across America,” Treasury Secretary Janet Yellen said in a statement. “These awards are expected to unlock nearly $9 billion in private and public sector resources to stimulate development in communities that need additional investment to create opportunities for communities to move forward.”
“The winners were selected based on a competitive review of applications submitted by 136 organizations that applied for more than $1.06 billion from the FY 2024 Capital Magnet Fund round,” the department said.
