WASHINGTON–The Community Development Financial Institutions Fund (CDFI Fund) has opened the fiscal year (FY) 2023 funding round for the Capital Magnet Fund.
According to Treasury, through the Capital Magnet Fund, the CDFI Fund competitively awards funds to Community Development Financial Institutions (CDFIs) and qualified non-profit housing organizations. The awards can be used to finance affordable housing, as well as related economic development and community service facilities, with the objective being to attract private capital investment in metropolitan, rural and economically distressed communities, Treasury said.
Source of Funding
Funding for the Capital Magnet Fund comes from allocations made by the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac and varies from year to year. The CDFI Fund plans to make up to $320.6 million in awards through the FY 2023 round.
“Due to the timeline associated with operating the Capital Magnet Fund program, as well as the significant number of awards made in the FY 2021 Capital Magnet Fund round, the CDFI Fund did not conduct a FY 2022 funding round,” Treasury noted. “Funding from allocations received by Fannie Mae and Freddie Mac (GSEs) in calendar year 2022 will be awarded in the FY 2023 round. The level of funding made available in previous funding rounds has equaled the amount annually allocated to the Capital Magnet Fund from the GSEs, which has caused substantial year-to-year variations in funding availability for applicants.
More Predictability
“However, to ensure more predictability in funding availability, the amount of funds available to be awarded under this Notice of Funds Availability (NOFA) has been determined by using a two-year average of the GSE allocations provided to the Capital Magnet Fund,” Treasury continued. “This also ensures that more funding will be available to award in the following two funding rounds, anticipating the allocations provided to the Capital Magnet Fund by the GSEs are projected to be significantly lower.”
How Funds are Used
Capital Magnet Fund recipients are able to utilize these funds for financing activities, such as capitalizing affordable housing funds, economic development funds, loan loss reserves, revolving loan funds, undertaking risk-sharing loans, and providing loan guarantees. Recipients are required to leverage private and public funds to finance affordable housing and economic development activities that yield a minimum ratio of 10:1, Treasury said.
For info, go here.
Still Free in ’23! The Freshest CU Headlines. Right to Your Inbox.
The biggest, best and freshest news reporting in credit unions remains free in ’23! Each morning CUToday.info delivers its daily update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more.
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.