CDT and The Kresge Foundation Partner to Lower the Cost of Financing Affordable Housing Developments and Make Available Additional Capital for Resident Services and Coordination
NEW YORK, NY -- (Marketwired) -- Oct 06, 2015 -- The Community Development Trust (CDT), a national Community Development Financial Institution (CDFI) that provides capital for the creation and preservation of affordable housing, announced today their commitment to Strong Families Fund (SFF), a program to reduce capital costs and fund resident services and coordination in affordable housing family developments. Working with The Kresge Foundation and its program partners, including the National Affordable Housing Trust (NAHT) and Great Lakes Capital, CDT will provide up to $25 million in below market permanent mortgages to nonprofit housing developers approved to participate in SFF.
Through the SFF, CDT and Kresge are able to lower the cost of capital, reducing mortgage payments and increasing the available capital to finance resident services and coordination for housing communities serving low-income families. This program combines Low Income Housing Tax Credits (LIHTC) and a pay-for-performance model to provide up to 10 years of funding to housing developments with enhanced services. Developers will be required to provide on-site, social service coordination targeted to improving resident and property outcome measures in five primary areas: health and wellness; work, income and assets; housing stability; youth and education; and community engagement. Multiple studies speak to the benefits of high-quality, affordable housing and there is increasing evidence that by connecting families to other social services, outcomes for families and children can be improved which may ultimately lead to stronger communities and broad public benefits.
The first project funded under SFF is a $2 million forward commitment to Deborah Strong Housing, a 112-unit rehabilitated LIHTC family community in Ypsilanti, Michigan. The remaining $23 million of CDT's commitment will be made available to an estimated six or seven additional developments over the next six to nine months. Ideal recipients are nonprofit housing developers with experience in service-enhanced family housing.
"We are excited to work with Kresge in expanding the resources available to residents in affordable housing communities," said Joseph F. Reilly, President and CEO of CDT. "The Strong Families Fund will reduce the capital costs on affordable housing developments and help make available the funds necessary to support on-site resident services. This program will further enhance the social impact of affordable housing communities and provide quantitative insights into the connection between family well-being and affordable housing."
CDT is committed to investing in the creation and preservation of affordable housing and working with partners like The Kresge Foundation which share their mission of improving residents' lives and their neighborhoods for the long-term. SFF compliments CDT's efforts to increase lending and investment activity with nonprofit housing developers. As a national CDFI with a double bottom line, CDT utilizes creative financial solutions to provide long term capital to underserved markets while providing attractive returns to our shareholders.
The Community Development Trust (CDT) is a national lender and investor in affordable housing. 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 closer to $1.2 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 CDFI, an approved Fannie Mae affordable housing lender, and a member of the Federal Home Loan Bank of New York.
About The Kresge Foundation
The Kresge Foundation is a $3.5 billion private, national foundation that works to expand opportunities in America's cities through grant making and investing in arts and culture, education, environment, health, human services, community development in Detroit. Follow the Foundation on Twitter at www.twitter.com/kresgefdn.
CONTACTS: 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