COLUMBUS, Ohio--(BUSINESS WIRE)--The U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund announced that Ohio Capital Corporation for Housing’s (OCCH) lending affiliate, Ohio Capital Finance Corporation (OCFC), was awarded $4,800,000 from the Capital Magnet Fund to assist in leveraging private capital for use in affordable housing throughout Ohio and Kentucky. OCFC anticipates its financing will result in 1,450 affordable housing units. This was the only award the CDFI funded in Ohio.
“OCCH is excited to assist in leveraging this award of $4.8M of Capital Magnet Funds from the CDFI Fund,” said Hal Keller, President of Ohio Capital Corporation for Housing. “These funds will be utilized to reduce total project construction interest costs of affordable housing in Ohio.”
Through the Capital Magnet Fund award, OCFC will leverage the $4.8 million for the financing of affordable rental housing by creating a revolving equity bridge loan program that may be used in conjunction with equity financing provided by OCCH.
“OCFC is honored to receive its second award of Capital Magnet Funds from the CDFI Fund,” said Jon Welty, President of Ohio Capital Finance Corporation. “This award creates an innovative opportunity for OCFC to provide and leverage additional dollars for affordable housing in Ohio and Kentucky.”
OCFC is one of five affiliates of Ohio Capital Corporation for Housing, a non-profit financial intermediary that provides developers of affordable housing with access to capital markets. Created in 1989, OCCH has raised over $3.75 billion in equity investment, financed more than 42,500 units of affordable housing, and assisted in the creation of more than 750 affordable projects.
The Ohio Capital Finance Corporation was created in 2002 to provide a flexible source of capital through predevelopment, acquisition and bridge financing to developers of affordable housing. To date, the OCFC and its sponsored loan funds has lent over $385 million through 511 loans utilized to develop and preserve more than 20,000 units of affordable housing across Ohio. OCFC was one of 23 awardees to receive a $5M CMF award in the inaugural year funding cycle in 2010. Affordable housing production from this award assisted in the production of 1,001 units, 19 loans and successfully leveraged the award into $158M of total project costs.
Read the full CDFI Fund Press Release on the OCCH web site at www.occh.org
Read Senator Sherrod Brown’s release at www.brown.senate.gov