The Ministry of Finance announces support for the development of 26,000 affordable houses

I US Department of TreasuryThe Community Development Financial Institutions (CDFI) fund announced Wednesday that it has awarded 48 organizations a total of $246.4 million to improve affordable housing and community services.

The funding is expected to include about 26,400 new homes, which will primarily help low-income families and communities that “need additional investment,” the department said in its announcement. Of this number, 750 will be “homeowner units,” and another 25,600 will be rental properties.

These awards, which will be distributed in the fiscal year (FY) 2024 of the Capital Magnet Fund (CMF), will support “funds for the preservation, renovation, development, or purchase of affordable housing, and services related to economic development, including day. care centers, workforce development centers, and health care clinics.”

A total of 48 recipients were named, and they will serve the needs of all 50 states, the District of Columbia, and US territories including Guam and Puerto Rico.

The Treasury noted that recipients “must leverage their awards on other private and public investments by at least 10 to one.” The receivers announced this week that they estimate they will spend about $6.8 billion in privately funded funds.

More than half (52%) of these organizations said they plan to focus part of their funding on rural areas, and 12 of them have pledged to give at least 25% of their awards to areas with limited infrastructure rather than urban or suburban areas. Of the 48 recipients, 25 are CDFIs and 23 are nonprofit housing associations.

“Today’s awards will increase the supply of affordable housing and expand access to child care and health care for families across America,” Treasury Secretary Janet Yellen said in a statement. “These awards are expected to leverage nearly $9 billion in public and private sector resources to promote development in communities that need more investment to create opportunities for communities to move forward.”

“Awardees were selected following a competitive review of applications submitted from 136 organizations that requested more than $1.06 billion in the FY 2024 Capital Magnet Fund round,” the department said.

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