A program of the U.S. Department of the Treasury CDFI Fund, the Capital Magnet Fund is designed to help mission-driven lenders attract private capital to support large scale loans in communities where financing is most needed.

In particular, loans utilizing the Capital Magnet Fund focus on providing financing for the development, rehabilitation, preservation, and purchase of affordable housing. In addition, this Fund can be used to create loans for other community service facilities as a means to create jobs and help stabilize and/or revitalize neighborhoods long impacted by disinvestment.

Capital Impact is focusing its efforts using this Fund to form key partnerships with developers that support the preservation and expansion of multi-family or mixed-use projects across Wayne County and Metro Detroit. This effort is anchored with a commitment to meet the demand for quality affordable housing.

Still struggling since the great recession, Wayne County’s nearly 688,000 households have a median household income of $46,390. Detroit, the largest city in Wayne County, is much lower with a median household income of $31,283 and a poverty rate of 36.4%.

Overcoming the historic underinvestment this region has faced requires a larger inclusive growth strategy. With the Capital Magnet Fund, Capital Impact is supporting locally driven solutions to develop mixed-income neighborhoods with easy access to employment and critical social services that contribute to the vibrancy and economic growth of the city.

Key Fund Features:

• Support multi-family rental housing and mixed-use real estate developments in Wayne County, Michigan with the following parameters:
  
  • At least 20% of the residential units offered below 50% of the Area Median Income (AMI);
  • At least 50% of the residential units offered below 80% of the AMI;
  • And all of the residential units offered below 120% of the AMI.
• Pre-development, acquisition, construction, and/or permanent loans
• Loan amounts up to $8 million
• Up to 90% Loan-to-Value
• Loan terms between 2 and 12 years
• Amortization schedule up to 35 years
• Equity requirement as low as 10% of project costs

Advantages of Borrowing Through Capital Impact Partners:

With an office and dedicated team in Detroit, we have invested more than $250 million locally to support inclusive growth in the city. Since 2015, Capital Impact has:

• Invested in projects that renovated or constructed over 4,500,000 sq. ft
• Contributed to the creation of over 900 permanent jobs and over 3,400 construction jobs
• Invested in the construction/preservation of over 1,700 housing units
• Helped to create new quality housing for nearly 4,000 people

Financing Projects that Support Inclusive Growth