Jan. 5, 2015 — Recent purchases of $9.5 million in home loans by the N.C. Community Development Initiative’s investment arm, Initiative Capital, is freeing bank capital for new affordable rental housing while providing a sustainable revenue stream for the nonprofit organization.
“Because of our recent portfolio purchases, those banks will be able to reinvest that $9.5 million in new loans,” said Initiative President & CEO Tara Kenchen. “It’s a win-win-win for the banks, the communities they serve and the Initiative.”
The Initiative in the past year acquired syndicated home loan interests from BB&T Bank, PNC Bank and Wells Fargo that had financed 6,014 units of affordable rental housing. All of the properties in the loan portfolios were financed with federally subsidized Low Income Housing Tax Credits through the Community Investment Corporation of the Carolinas (CICCAR), an affordable housing loan consortium managed by N.C. Bankers Association with more than 100 bank members from across the Southeast.
The Initiative also benefits from the revenues produced by the portfolios. A knowledgeable intermediary, the Initiative strategically invests funds from many sources in the work of community development and community development organizations. It also provides leadership development and technical assistance for the sector. Proceeds from loans and investments made by Initiative Capital, a federally certified community development financial institution, support the Initiative’s work. The loan portfolio purchases are a key component of the Initiative’s long-term sustainability plan.
For more information on Initiative Capital, visit http://ncinitiative.org/about/initiativecapital.
The N.C. Community Development Initiative leads North Carolina’s collaborative community economic development effort, driving innovation, investment and action to create prosperous, sustainable communities. For more information, visit www.ncinitiative.org.