CDT Charter School Lending Program Will Help Alleviate the Difficulty Charter Schools Have Traditionally Faced in Obtaining Affordable, Long-Term, Fixed-Rate Financing
NEW YORK, NY -- (Marketwired) -- Sep 21, 2015 -- The Community Development Trust (CDT), which provides long-term debt and equity capital for the creation and preservation of affordable housing, today announced the CDT Charter School Lending Program, a new program that will provide long-term, competitively priced, fixed-rate financing for charter schools. CDT's new commitment will help alleviate the difficulty charter schools have historically faced in obtaining affordable, permanent financing from traditional lenders.
The CDT Charter School Lending Program was developed to meet the increasing demand for long-term financing among charter schools with a track record of academic strength and a demonstrated history of operational capacity. Generally, eligible schools must be at full enrollment and have completed at least one successful charter renewal. All schools must be located in low to moderate income census tracts and serve student populations with no less than 51% free and reduced lunch eligibility. The program's lending terms were developed in recognition of the strong performance of quality charter schools as a community development asset class. Standard lending parameters are a 1.20 minimum DCR, 80% maximum loan to value with a maximum loan term through the maturity of the capital facility of approximately 28 years and a 15-year yield maintenance period.
Ideal candidates for this initiative include schools coming out of 7-year New Markets Tax Credit (NMTC) compliance, transactions needing to refinance out of a revolving loan fund and small transactions for which a municipal bond execution is cost prohibitive due to higher issuance fees. CDT will also look for opportunities to partner with other Community Development Financial Institutions (CDFIs).
"At CDT, we are committed to providing long-term debt and equity capital to mission oriented community developments across the country," said Joseph F. Reilly, President and CEO of CDT.
Shelly Cleary, Senior Vice President of CDT, further added, "We are continually looking to collaborate with quality organizations and are excited to embark on our new commitment to high performing charter schools."
More information about the CDT Charter School Lending Program can be found by visiting http://www.cdt.biz/charter-schools/.
The Community Development Trust (CDT) is a national lender and investor in affordable communities. Working with local, regional, and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its sixteen years, CDT has invested over $1.1 billion in debt and equity capital to properties in 42 states and regions -- helping to preserve and create nearly 37,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender, and a member of the Federal Home Loan Bank of New York (FHLBNY).
CONTACT: Zigis Switzer 212.784.5705 [email protected]
NewsMaker is an Australian Press Release Distribution and Social Media Marketing service founded in 2004. The company today represents over 22,000 brands who seek to share their content with journalists, bloggers and the community.
P: +61 414 69 70 71