California Community Reinvestment Corporation (CCRC) announced a series of financing milestones that significantly strengthen its capital available for affordable housing lending throughout California. The successful closing of a $114 million securitization of tax-exempt loans, alongside $10.1 million in additional capital from existing bank partners, increases CCRC’s lending capacity by more than $124 million. This marks the first time a Community Development Financial Institution (CDFI), rather than a bank or government entity, has completed a securitization of this kind.
The securitization, structured in two tranches, drew strong demand from investors in the public municipal market. Wells Fargo served as underwriter, and U.S. Bank acted as trustee and custodian. Unlike most lenders, which sell or deliver loans to Fannie Mae or Freddie Mac at closing, CCRC retained these loans on its balance sheet before bringing them to the municipal market for securitization—a structure used by only a handful of financial institutions since it emerged in 2019. Executing such a transaction requires operational capacity and a credit rating, capabilities rare among CDFIs nationally.
Alongside the securitization, several existing bank partners increased their commitments. Beneficial State Bank raised its loan pool contribution from $12.5 million to $15 million, an increase of $2.5 million, and separately made a new $2.5 million commitment to CCRC’s Tax-Exempt Loan (TEL) pool. State Bank of India (California) increased its contribution from $1.9 million to $3 million, an increase of $1.1 million. Bank of America returned with a new $2 million commitment, and Wells Fargo provided a $2 million patient capital loan to support shorter-term bridge lending that preserves affordable housing.
“Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars,” said Tia Boatman Patterson, President and CEO of CCRC. “The securitization reflects years of work to build the infrastructure and track record needed to access the public markets. The increased commitments demonstrate the trust we’ve built with our investors and their continued commitment to financing affordable housing. Having the ability to recycle capital, lower our cost of funds, and continue expanding affordable housing finance opportunities is critical for our development sponsors and the California communities they serve.”
The combined effect strengthens CCRC’s ability to continue funding permanent loans for affordable multifamily housing developments across the state, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. For more information, visit CCRC's website.
