Capital Magnet Fund
The Capital Magnet Fund (CMF) program provides flexible financing to support affordable housing and related economic development activities in low income communities. LIIF was awarded $6 million through the CMF program, the largest award from its inaugural funding round in 2010. The program supports LIIF’s efforts to leverage private investment to finance supportive housing initiatives and community development projects in underserved communities. Through the program, LIIF offers borrowers access to flexible financing to acquire, rehabilitate or preserve affordable housing properties and community facilities in competitive markets.
LIIF has used CMF capital to produce the following impacts:
- 1,500 affordable housing units created /preserved
- $139 million of private capital leveraged
- 18,000 low income people served
- 205 quality jobs created
About the CMF
The Housing and Economic Recovery Act (HERA) of 2008 created the CMF and National Housing Trust Fund (NHTF) to increase the availability of affordable housing for low-income families, seniors, veterans, people with disabilities and others in need—and to spur economic development. The CMF, in particular, was created to attract private capital investment into these activities.
In 2010, Congress appropriated $80 million to CMF, which was disbursed to 23 organizations in 14 states. Those groups attracted 12 times that amount from investors, for a total of more than $1 billion, creating nearly 7,000 affordable homes and 5,700 jobs across 28 states, Washington, DC, and Puerto Rico in urban and rural communities.