VCDF awarded $800,000 by CDFI Fund in Financial Assistance to support economic development
September 26, 2024 — The U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has awarded the Virginia Community Development Fund (VCDF) $800,000 in Financial Assistance (FA) awards. VCDF’s award will support lending to spark economic development in distressed and underserved communities in VA and WV.
VCDF was one of 357 organizations to receive an award — totaling $408 million in FA awarded to CDFIs across the United States — and one of 176 loan funds to be awarded. This year, the CDFI fund received a record-breaking number of FA applications with an increase of over 40% from the prior year. These grants will help CDFIs provide financial services to improve economic opportunity, spark economic growth, and drive revitalization efforts in distressed and underserved communities across the country.
This is VCDF’s fourth FA award. The grant will help finance real estate projects intended to boost local economies, particularly in small towns and rural areas seeking downtown revival where developers are hard-pressed to receive financing from traditional sources. VCDF will disperse these funds in the form of low-interest acquisition, construction, and mini-perm loans to reduce project costs during construction and supplement the gaps resulting from conventional loan-to-value underwriting and higher interest rates.
About VCDF
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.
About the CDFI Program
Through the CDFI Program’s Financial Assistance and Technical Assistance awards, the CDFI Fund invests in and builds the capacity of for-profit and non-profit community-based lending organizations known as Community Development Financial Institutions, or CDFIs. These organizations, certified as CDFIs by the U.S. Treasury Department, serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services. Awards are granted through an annual competitive application process.
Read more about the Financial Assistance awards here: CDFI Fund Announces FY 2024 CDFI Program and NACA Program Financial Assistance Awards