U.S. Department of the Treasury Announces Awards to Support Development of 26,400 Affordable Housing Units

WASHINGTON - The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) today awarded 48 organizations $246.4 million for the development of affordable housing and community facilities serving low-income, families and communities that need additional investment. These awards were made through the fiscal year (FY) 2024 round of the Capital Magnet Fund (CMF). The awards will support financing for the preservation, rehabilitation, development, or purchase of affordable housing, as well as related economic development facilities, including day care centers, workforce development centers, and health care clinics.

"Today's awards will increase affordable housing supply and expand access to child care and health care for families across America," said Secretary of the Treasury Janet L. Yellen. "These awards are projected to leverage nearly $9 billion in private and public sector resources to spur development in communities that need additional investment to create opportunities for communities to get ahead."

Award recipients are required to leverage their awards with other private and public investment by at least 10 to one, today's awardees anticipate that they will leverage more than $6.8 billion in private investment.

The 48 awardees will collectively serve 50 states, the District of Columbia, Guam, and Puerto Rico. In all, 25 awardees (52% of the total awardees) plan to invest a portion of their award dollars in rural areas, with 12 of those organizations planning to invest at least one-fourth of their award dollars in rural areas. Of the total awardees, 25 are Community Development Financial Institutions (CDFIs) and 23 are nonprofit housing organizations. The awardees were selected pursuant to a competitive review of Applications submitted from 136 organizations that requested more than $1.06 billion from the FY 2024 Capital Magnet Fund round.

This announcement will result in more than 26,400 affordable housing units, including more than 25,600 rental units and more than 750 homeownership units. Since its establishment by the Housing and Economic Recovery Act of 2008, the Capital Magnet Fund has created over 63,000 affordable homes, including more than 55,600 rental housing units and 7,400 homeowner-occupied units.

Since its creation in 1994, the CDFI Fund has awarded more than $8 billion to CDFIs, community development organizations, and financial institutions through: the Bank Enterprise Award Program; the Capital Magnet Fund; the CDFI Rapid Response Program; the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Economic Mobility Corps; the Financial Education and Counseling Pilot Program; the Native American CDFI Assistance Program; and CDFI Equitable Recovery Program. In addition, the CDFI Fund has allocated $81 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and guaranteed bonds for nearly $3 billion through the CDFI Bond Guarantee Program.

See the FY 2024 Capital Magnet Fund Award book and list of recipients here.

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