LIIF & Partners Applaud Reinstated Funding for Capital Magnet Fund
Today, the Low Income Investment Fund joined some of the nation’s leading Community Development Financial Institutions (CDFIs)—Capital Impact Partners, IFF and The Reinvestment Fund—to commend the Federal Housing Finance Agency (FHFA) in its decision to direct Fannie Mae and Freddie Mac to begin contributing funds to the Capital Magnet Fund (CMF) as provided by the Housing and Economy Recovery Act of 2008. Ending the temporary suspension of funding for the program, today’s announcement comes behind the coordinated advocacy efforts of the CDFIs.
Launched in 2010, the CMF program helps CDFIs and nonprofit housing organizations finance affordable housing and related economic development activities in low income communities. Alongside its CDFI partners, LIIF has tirelessly advocated that policymakers support funding for the Capital Magnet Fund to address critical needs in the country’s most underserved communities. To date, the program has received $80 million to leverage more than $1 billion in affordable housing and community development investments, creating over 7,000 affordable homes.
“LIIF joins its partners CIP, IFF and TRF in applauding the FHFA for reinstating funding for the Capital Magnet Fund. We are proud of our collective efforts to demonstrate the effectiveness and necessity of these funds,” said Nancy O. Andrews, president and CEO of LIIF. “The Capital Magnet Fund has proven to be a powerful tool for attracting private sector investment and expanding the availability of affordable housing in low-income communities.”