California Community Reinvestment Corporation (CCRC) has announced a significant increase in its lending capacity, closing a $114 million securitization of tax-exempt loans and securing $10.1 million in additional capital from existing bank partners. This brings the total new capital to more than $124 million, strengthening CCRC's ability to finance affordable housing across California.
The securitization is a landmark transaction, marking the first time a Community Development Financial Institution (CDFI) has completed a securitization of this kind in the public municipal market. Unlike traditional lenders that sell loans to Fannie Mae or Freddie Mac at closing, CCRC retained the loans on its balance sheet before bringing them to market. This structure, which has been used by only a handful of financial institutions since 2019, requires significant operational capacity and a strong credit rating—capabilities that are rare among CDFIs.
Wells Fargo served as underwriter for the securitization, with U.S. Bank acting as trustee and custodian. The deal was structured in two tranches and drew strong investor demand, reflecting confidence in CCRC's financial strength and the quality of its loan portfolio.
In addition to the securitization, several existing bank partners have increased their commitments to CCRC. Beneficial State Bank increased its loan pool contribution from $12.5 million to $15 million and made a new $2.5 million commitment to CCRC's Tax-Exempt Loan (TEL) pool. State Bank of India (California) increased its contribution from $1.9 million to $3 million, and Bank of America returned with a new $2 million commitment. Wells Fargo also provided a $2 million patient capital loan to support short-term bridge lending for affordable housing preservation.
Tia Boatman Patterson, President and CEO of CCRC, highlighted the importance of these transactions. "Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars," she said. "The securitization reflects years of work to build the infrastructure and track record needed to access the public markets. The increased commitments from our bank partners demonstrate the trust we've built with our investors and their continued commitment to financing affordable housing. Having the ability to recycle capital, lower our cost of funds, and continue expanding affordable housing finance opportunities is critical for our development sponsors and the California communities they serve."
The combined effect of these transactions is a stronger CCRC, better equipped to fund permanent loans for affordable multifamily developments. This supports working families, seniors, veterans, and individuals experiencing or at risk of homelessness across the state. By accessing the public markets and securing additional bank capital, CCRC is setting a precedent for other CDFIs and demonstrating innovative ways to finance affordable housing.
For more information about CCRC and its lending programs, visit https://www.e-ccrc.org/.
