California Community Reinvestment Corporation (CCRC), a Glendale-based nonprofit lender, has announced a series of financing milestones that will substantially increase its capacity to fund affordable housing throughout the state. The organization successfully closed a $114 million securitization of tax-exempt loans, marking the first time a Community Development Financial Institution (CDFI) has completed such a transaction in the public municipal market. Additionally, CCRC secured $10.1 million in new and expanded commitments from existing bank partners, bringing the total new capital to over $124 million.
The securitization, structured in two tranches, drew strong investor demand and was underwritten by Wells Fargo, with U.S. Bank serving as trustee and custodian. Unlike conventional lenders that sell loans to government-sponsored enterprises like Fannie Mae or Freddie Mac at closing, CCRC retained the loans on its balance sheet before bringing them to the municipal market—a structure rarely used by financial institutions since its emergence in 2019. This approach requires substantial operational capacity and a strong credit rating, capabilities that are uncommon among CDFIs nationwide.
“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 California Community Reinvestment Corporation. “The securitization reflects years of work to build the infrastructure and track record needed to access the public markets. The increased commitments from our bank partners 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 additional capital from bank partners includes a $2.5 million increase from Beneficial State Bank, raising its loan pool contribution from $12.5 million to $15 million, plus 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 designed to support shorter-term bridge lending that helps preserve affordable housing.
The combined effect of these transactions 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. By accessing the public markets and securing additional bank capital, CCRC can recycle funds and lower its cost of capital, enabling it to expand its lending programs and address California's persistent affordable housing crisis.
This development is significant because it demonstrates a new avenue for CDFIs to raise capital, potentially inspiring similar institutions to explore securitization. It also underscores the ongoing commitment of major banks to support affordable housing, even in a challenging economic environment. For communities across California, this means more funding for much-needed affordable housing projects, which can help alleviate the state's housing shortage and provide stability for vulnerable populations.
