$2.25 Million Awarded by the Treasury Department’s Capital Magnet Fund to Finance Affordable Housing in VA & WV

Feb. 24, 2021 — The federal government has awarded Virginia Community Development Fund (VCDF) $2.25 million from the Treasury Department’s Capital Magnet Fund (CMF). VCDF’s award will support the development of affordable housing in communities across VA and WV.

 Over 135 organizations applied for the FY 2020 round of CMF funding, which totaled $175.25 million. VCDF was one of 48 organizations to receive an award. The grants will help 21 nonprofit housing organizations and 27 CDFIs create and preserve nearly 23,000 affordable housing units for low-income families and economically distressed communities.

 This is VCDF’s first CMF award. The grant will finance high quality affordable rental housing in communities where developers are hard-pressed to get financing from traditional sources. These funds will be available in the form of low-interest construction loans to reduce project costs during construction and supplement the gaps resulting from conventional loan-to-value underwriting and higher interest rates. VCDF’s vision is to grow its lending capacity to provide more low-cost loans to developers, addressing barriers in affordable housing development by relieving the reliance on more costly sources. The CMF award will allow VCDF to take a larger part in financing projects and offer creative options to partners to increase affordable housing for low-income households in need, according to VCDF Development Officer Laura Dupuy.

 “Receiving CMF funds significantly increases VCDF’s ability to participate in larger and higher impact lending to further affordable housing opportunities,” Dupuy explained. “We are very grateful for this award and assuming an expanded role in LIHTC financing.”

 VCDF is the lending affiliate of VCDC, a non-profit low-income housing tax credit syndicator with over 30 years of experience connecting developers, investors, and communities with resources to create thriving neighborhoods that benefit all residents. VCDF shares VCDC’s mission of delivering equity and loans to affordable housing developers to meet the growing housing and affordability needs in our service area of VA and WV.

 The Capital Magnet Fund offers competitively awarded grants to finance affordable housing solutions and community revitalization efforts that benefit low-income people and communities nationwide. To date, the CMF has created over 13,000 affordable homes, including more than 11,500 rental housing units and 1,500 homeowner-occupied units.

 Read more about the CMF awards here: FY 2020 Capital Magnet Fund Award Book