The U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund announced that the Ohio Capital Finance Corporation (OCFC), an affiliate of the Ohio Capital Corporation for Housing, was awarded $6,000,000 from the Capital Magnet Fund to assist in leveraging private capital for use in affordable housing. OCFC anticipates its financing will result in 1,700 affordable housing units.
“OCFC is honored to receive its fourth consecutive award of Capital Magnet Funds from the CDFI Fund,” said Jon Welty, Executive Director of Ohio Capital Finance Corporation. “This award creates an exciting opportunity for OCFC to provide and leverage additional dollars for affordable housing in Ohio, Kentucky, and West Virginia.”
Over a 5-year period, OCFC expects to provide a total of over $179 million in total project cost financing for affordable rental housing. OCFC will provide below-market rate predevelopment, acquisition, construction, and equity bridge loans to assist in the preservation of affordable housing, allowing for lower tenant rents, which are needed in underserved markets. OCFC intends to lend a majority of these funds to projects in Areas of Economic Distress.
The Capital Magnet Fund helps low-income families and economically distressed communities by attracting investment for affordable housing and related economic development. The Capital Magnet Fund provides competitively awarded grants to CDFIs and qualified non-profit housing organizations to develop, rehabilitate, preserve, and purchase affordable housing for Low-, Very Low-, and Extremely Low-Income families. Capital Magnet Fund awards also finance economic development and community service facilities such as day care centers, workforce development centers, and health care clinics. Awardees utilize financing tools such as loan loss reserves, loan funds, risk-sharing loans, and loan guarantees to produce eligible activities within five years with aggregate costs that are at least 10 times the size of the award amount.
For more information regarding this critical financing, please contact Jon Welty (email@example.com).