Award will support affordable housing for low-income families
Philadelphia, March 20, 2018 –Reinvestment Fund received a $4.5 million Capital Magnet Fund award from the U.S. Department of the Treasury’s CDFI Fund. The award was part of $120 million awarded to 40 community development financial institutions and housing nonprofits. Reinvestment Fund plans to use the award to address affordable housing challenges by providing capital to housing projects serving high-need communities and relieving housing cost burdens for low-income families.
“Over the last five decades, home rental rates have increased at three times the rate of household incomes. When a family suffers to afford their home, they suffer in a host of ways,” said Don Hinkle-Brown, President and CEO of Reinvestment Fund. “This award will help us expedite affordable housing solutions, and help lower income households avoid the financial stress, poor health, and underachievement in schools that are often associated with unaffordable housing situations.”
Reinvestment Fund continues to use revolved capital from its previous Capital Magnet Fund award to support affordable housing in key markets. A recent example includes the construction of an 88-unit affordable residential development in Lowndes County near Valdosta, GA. Known as Freedom Heights, the project is developing 7 acres of land just north of Valdosta city limits. The apartments will be affordable to households with incomes between 50 and 80% of the Area Median Income. Located along the Florida border, Lowndes County is a major commercial, educational, and manufacturing center of South Georgia and is the home of several large institutions, including Moody Air Force Base, Valdosta State College, and the South Georgia Medical Center.
The Capital Magnet Fund resources can be used to finance affordable housing activities, as well as related economic development activities and community service facilities, with the objective of attracting private capital to economically distressed communities, including underserved rural areas. Funding for the Capital Magnet Fund comes from allocations made by the Government-Sponsored Enterprises Fannie Mae and Freddie Mac.
About Reinvestment Fund
Reinvestment Fund is a catalyst for change in low-income communities. We integrate data, policy and strategic investments to improve the quality of life in low-income neighborhoods. Using analytical and financial tools, we bring high-quality grocery stores, affordable housing, schools and health centers to the communities that need better access—creating anchors that attract investment over the long term and help families lead healthier, more productive lives. To learn more about Reinvestment Fund, visit www.reinvestment.com.