CCRC Makes History with First CDFI Securitization in Municipal Market

In a groundbreaking move for affordable housing finance, the California Community Reinvestment Corporation (CCRC) has successfully closed a $114 million securitization of tax-exempt loans, becoming the first Community Development Financial Institution (CDFI) in the nation to do so in the public municipal market. This innovative transaction, structured in two tranches, was 4.8 times oversubscribed and achieved highly competitive pricing, including the strongest pricing to date for the Class A-1 tranche. Wells Fargo served as underwriter, while U.S. Bank acted as trustee and custodian. The securitization pool consisted of tax-exempt loans secured by 21 affordable housing properties comprising 1,573 units serving families, seniors, veterans, and formerly homeless households. All loans were originated and funded by CCRC, which will continue to service the portfolio and provide ongoing asset management services.

CCRC's use of the municipal market represents a new strategy for recycling program capital, a structure that has been used by only a handful of financial institutions since it first emerged in 2019. This approach requires substantial operational capacity and a strong credit profile, capabilities that are rare among CDFIs nationally. By recycling capital already deployed in its loan portfolio, CCRC can continue financing developers and communities in need without waiting on new funding sources. As Tia Boatman Patterson, President and CEO of CCRC, stated, "Affordable housing lending depends on having the capital available to keep lending, and this transaction gives us exactly that."

The new capital raised through the securitization strengthens CCRC's ability to fund permanent loans for affordable multifamily housing developments across California, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. CCRC is California's premier CDFI multifamily affordable housing lender, tackling the affordable housing crisis throughout the state. For more information, visit https://www.e-ccrc.org/.