Capital Impact Partners Awarded $4.95 Million to Support Housing Developers Through the CDFI Equitable Recovery Program
These funds will be used to provide loans, grants, and development services to developers who build rental housing in communities across the United States.
April 14, 2023 (Arlington, VA) – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has announced that Capital Impact Partners was awarded a $4.95 million grant through the CDFI Equitable Recovery Program.
The CDFI Equitable Recovery Program will strengthen the ability of CDFIs to ensure that low- and moderate-income communities continue to recover from the COVID-19 pandemic and invest in long-term prosperity. The CDFI Fund awarded $1.73 billion to 603 organizations nationwide.
“This award will help us address the decreased access to affordable housing for low-income families, a problem that has only been exacerbated by the COVID-19 pandemic,” said Mindy Christensen, senior vice president of community development real estate for Capital Impact Partners. “With these funds, we can expand our strategy of creating more affordable housing while also building up the capacity of local real estate developers.”
Helping Developers Grow Their Businesses
The award from the CDFI Equitable Recovery Program will be used to support developers with loans, grants, and development services.
A portion of the award will be utilized to provide grants, enabling developers to build equity and cover early-stage project costs such as predevelopment legal, architectural, and engineering fees; conducting feasibility studies; acquiring properties; and building a project balance sheet to attract debt. This type of funding, which strengthens projects, often is not offered by conventional lenders.
This award will also be leveraged with balance sheet capital to provide loans for acquisition, construction, and permanent financing.
Emerging developers are often challenged while seeking financing from conventional lenders — who want to invest in developers with significant experience and often reject projects as higher-risk when located in neighborhoods with lower appraisal values, are smaller, generate less revenue streams, and fall outside traditional underwriting standards.
Developers who are unable to access traditional financing often turn to high-cost and extractive financing options to fill capital gaps, or they fail to bring their projects to fruition.
“While many traditional lenders are pausing capital deployment in this uncertain market, Capital Impact Partners is embracing the opportunity,” said Ms. Christensen. “We are proud to partner with developers by providing the integrated financial and non-financial capital needed to build up communities.”
Capital Impact Partners will utilize ERP funds to provide development services to support its EDI programs for real estate developers in Detroit; the Washington, D.C. Metropolitan Area; the San Francisco Bay Area; and Dallas — and to expand the program into new regions. The program provides developers with training, mentorship, and potential access to capital.
Since the program launched in 2018, more than 200 developers of color have completed it.
Many of these developers have since worked on mixed-use and residential projects in communities, creating more affordable housing and helping the local economy.
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About Capital Impact Partners
Capital Impact Partners, part of the Momentus Capital branded family of organizations, is transforming how capital and investments flow into communities to provide people with access to the capital and opportunities they deserve. As one of the nation’s leading mission-driven Community Development Financial Institutions (CDFIs), we help build strong communities and create generational wealth by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact Partners offers flexible financing for catalytic mission-aligned projects in four primary sectors: increasing access to health care, education, affordable housing, and healthy food.
In addition, we manage several multi-year initiatives in key regions to support emerging developers, small business owners, cooperatives, and community health enterprises through training, professional networks, access to experts and mentors, and pathways to grants and loan capital.
Capital Impact Partners has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact Partners’ leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch Ratings and recognized by Aeris for its performance.
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
Learn more at capitalimpact.org and momentuscap.org.
About Momentus Capital
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners and CDC Small Business Finance, as well as their affiliates, Momentus Direct Capital, and Momentus Securities (an SEC-registered broker-dealer, MSRB-registered, FINRA/SIPC member). While each organization under the Momentus Capital brand still operates as a separate entity, its clients now have access to more resources and products.
The Momentus Capital branded family of organizations is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve. We are working to reinvent traditional financial systems by offering a continuum of financial, knowledge, and social capital to help entrepreneurs, community-based organizations, and local leaders at every growth stage to build strong communities and create generational wealth.
This includes a comprehensive package of loan products, impact investment opportunities, training and business advising programs, and technology solutions that advance locally-led solutions.
Leveraging more than 80 years of combined experience, more than $3 billion in assets under management, and strong community engagement, the Momentus Capital branded family of organizations has delivered $24 billion in financing, created and preserved 298,000 jobs, and served 14,350 small businesses and 6 million people across our history.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Georgia, Michigan, Nevada, New York, Texas, and the Washington D.C. metro area.
Learn more at momentuscap.org.
