The U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced that the Ohio Capital Finance Corporation (OCFC), an affiliate of the Ohio Capital Corporation for Housing, was one of 8 organizations to receive the maximum award of $12M from the Capital Magnet Fund to assist in leveraging private capital for use in affordable housing. OCFC anticipates its financing will result in nearly 1,800 affordable housing units.
“OCFC is honored to receive its sixth award of Capital Magnet Funds from the CDFI Fund,” said Jon Welty, President of Ohio Capital Finance Corporation. “This award adds to the $40M+ of CMF funds we have received over the years, allowing OCFC to provide and leverage additional dollars for affordable housing in Ohio, Kentucky, and West Virginia.”
Since 2010, OCFC has leveraged its CMF awards to assist in the creation and preservation of over 6,500 affordable housing units.
Over a 5-year period, OCFC expects to utilize the $12M award to provide over $120 million in loans for affordable rental housing development. OCFC will provide below-market rate construction, equity bridge and permanent loans to assist in the development of affordable housing, allowing for lower tenant rents, which are needed in underserved markets.
The Capital Magnet Fund helps low-income families and economically distressed communities by attracting investment for affordable housing and related economic development. Through the Capital Magnet Fund, the CDFI 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. The 2021 application round was highly competitive with only 40% of the 146 applications being funded.
For more information regarding this critical financing, please contact Jon Welty (jwelty@occh.org).
