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CDFI

Capital Magnet Fund

CDFI Capital Magnet Fund

The Capital Magnet Fund (CMF) is a pivotal initiative administered by the Community Development Financial Institutions (CDFI) Fund. It aims to create and preserve affordable housing for low-income families and economically distressed communities by attracting private capital. The CMF awards competitive grants to CDFIs and qualified non-profit housing organizations, enabling them to develop, rehabilitate, preserve, and purchase affordable housing. Additionally, CMF awards can be used to finance economic development and community service facilities that work in concert with affordable housing to revitalize distressed communities.
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Additional Information

Program Overview

  • Objective: To support the development, rehabilitation, preservation, and purchase of affordable housing for low-, very low-, and extremely low-income families.
  • Eligible Applicants: CDFIs and qualified non-profit housing organizations.
  • Funding Uses: Affordable housing activities, economic development, and community service facilities.

Eligible Uses of Funds

Affordable Housing Activities:

• Development: Construction of new affordable housing units.
• Rehabilitation: Renovation of existing housing to make it affordable.
• Preservation: Efforts to maintain the affordability of existing housing units.
• Purchase: Acquisition of properties to be used as affordable housing.

Economic Development and Community Service Facilities:
• Day Care Centers: Facilities providing child care services to support working families.
• Workforce Development Centers: Centers offering job training and employment services.
• Health Care Clinics: Clinics providing essential health services to underserved communities.

Application Process

Eligible organizations can apply for CMF awards through a competitive application process. The application evaluates the extent of economic distress in the areas served, the potential for leveraging private capital, and the impact on affordable housing and community revitalization.

Impact and Benefits

The CMF plays a crucial role in:

• Attracting Private Capital: Leveraging public funds to attract private investment in affordable housing and community development.
• Revitalizing Communities: Supporting projects that enhance the quality of life in economically distressed areas.
• Supporting Low-Income Families: Providing affordable housing options and essential services to low-, very low-, and extremely low-income families.

Recent Awards

The CMF has consistently supported numerous projects across the country. For instance, in FY 2023, the CMF awarded $321.2M in grants to 29 CDFIs and 23 non-profit housing organizations, enabling them to undertake significant affordable housing and community development projects.

Conclusion

The Capital Magnet Fund is instrumental in fostering economic growth and stability in underserved communities. By providing competitive grants to CDFIs and non-profit housing organizations, the CMF helps create and preserve affordable housing, attract private capital, and support essential community services. This comprehensive approach ensures that low-income families and economically distressed communities have access to the resources they need to thrive.
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Our Financing Programs

The CBO Financial team specializes in helping project sponsors secure flexible, below-market financing with a focus on high-impact projects in low-income communities. Our financial experts are skilled at combining public and private funding sources so that projects that might have otherwise stalled can move forward quickly and cost-effectively.

We’ve financed over $1 billion in high-impact investments nationwide, including $150 million using New Markets Tax Credits awarded to a CBO subsidiary. Backed by powerful funding tools and expertise, you’ll be pushed through to the finish line.

New Markets Tax Credits

A federal subsidy program designed to revitalize distressed communities by providing forgivable gap financing for up to 25% of costs for high-impact projects.
New Markets Tax Credits

Capital Magnet Fund

Grants up to $15M to CDFIs and nonprofit housing organizations to finance affordable housing and related economic development activities.
Property Assessed Clean Energy Financing

Bond Guarantee Program

A program that provides CDFIs with access to long-term, low-cost capital by guaranteeing bonds issued by qualified CDFIs, providing fixed rate financing for up to 29 years at ~100 bps over Treasuries.
Federal Historic Tax Credits

Technical Assistance Awards

Grants up to $125K to startup and existing CDFIs to build capacity to serve low-income communities by funding activities such as staff training, technology purchases, and consulting services.
Community Development Financial Institutions

Financial Assistance Awards

Matching grants up to $2M awarded to CDFIs to enhance their ability to provide loans, investments, and financial services to underserved populations.
US Department of Agriculture

Small Dollar Loan Program

Up to $500K to provide a loan loss reserve to support making affordable consumer loans to low-income individuals for up to $2,500, helping them avoid predatory lending practices.
Redevelopment Assistance Capital Program

CDFI Certification

A designation for specialized financial institutions that provide financial products and services in low-income communities and to targeted populations that lack access to financing.
Puerto Rico Financing Programs

EPA Programs

Community Change Grant Program

A $10M to $40M grant program that supports community-led projects aimed at improving environmental and public health outcomes in underserved communities.
New Markets Tax Credits

Clean Communities Investment Accelerator

Provides community lenders with grants up to $11M to help accelerate investment in clean energy and sustainable infrastructure projects in low-income communities.
Property Assessed Clean Energy Financing

National Community Investment Fund

Loans and guarantees will be made directly to projects with this funding starting in early 2025.
Federal Historic Tax Credits

USDA Programs

Business & Industry

A program that provides loan guarantees up to $25M to rural businesses to improve, develop, or finance business, industry, and employment.
New Markets Tax Credits

Community Facilities

A program that offers direct loans, loan guarantees, and grants to develop essential community facilities in rural areas up to $5M.
Property Assessed Clean Energy Financing

Rural Energy for America Program

A program that provides grants up to $1M and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements.
Federal Historic Tax Credits

Other Funding Programs

Federal Historic Tax Credits

The federal Historic Tax Credit is available for the rehabilitation of historic, income-producing buildings determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures” for approximately 20% of project costs.
New Markets Tax Credits

You see challenges. We see possibilities.
Your community sees change.

Established in 1999, CBO Financial is a financial consulting firm that specializes in helping businesses secure funding for development projects in the nation’s most distressed communities. Our experts understand how to present economic, environmental, and societal benefits to public and private organizations so your project receives the funding it needs to move forward quickly and reasonably. A CBO Financial subsidiary, Community Development Funding, LLC, has received six awards under the federal New Markets Tax Credit program totaling $150M. In addition the team has taken a leadership role in securing 18 awards for clients totaling over $400M.
Our Services
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The funding is out there

CBO can be your access point for a variety of federal financing and subsidy programs, including those offered by the CDFI Fund, EPA, USDA and other agencies.
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 a Significant Impact

CBO is on a mission to help elevate the lives of people living in distressed communities by providing flexible, below-market gap financing to high-impact projects that cannot otherwise move forward. Does your project qualify for financing?
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Million-dollar stories

The CBO team has funded over $1 billion in projects for local and national nonprofits, for-profit developers, and municipal agencies. Our team can help you find the low-cost financing or new market tax credits needed for your projects.
Projects

Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

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