New Jersey Community Capital, the state of New Jersey’s largest community development financial institution, or CDFI, on Wednesday said it received a $4.935 million Capital Magnet Fund award from the U.S. Department of the Treasury’s CDFI Fund. This investment, the Capital Magnet Fund’s largest award round to date, is part of a larger $336.4 million round of funding aimed to support affordable housing initiatives around the country.
“This year, we have experienced a severely tumultuous housing market, and we’ve seen firsthand the importance of having accessible, affordable housing in our most underserved neighborhoods,” Bernel Hall, CEO and president of New Jersey Community Capital, said. “We’re honored to receive this funding and to be recognized as a leading CDFI that actively invests in affordable housing and fosters equitable and enriched communities for residents who need it most.”
The award will be used as loan capital for affordable housing projects, enabling lower-interest loans. NJCC’s Capital Magnet Fund application presented a pipeline of 420 affordable units (all less than 80% of the area median income, and some at 30% AMI or less) where the $4.935 million of Capital Magnet Fund capital will be leveraged to support more than $55 million in total development costs.
The Capital Magnet Fund awarded a total of $336.4 million to 59 organizations across the country to support the preservation and development of affordable housing and community facilities for low-income communities, marking Fiscal Year 2021 as its largest award round ever.
New Jersey is among 49 states and U.S. territories where the selected organizations plan to develop more than 41,100 affordable housing units, including more than 38,700 rental units and more than 2,400 homeownership units.