INVESTORS NeighborWorks® Capital strategy to increase its loan capital (and lending to NWOs) comes from important strategic partnerships with the philanthropic and social investor sectors and financial institutions that have a commitment to affordable housing and community development. With investments made into NC's loan fund, versus NC underwriting loans for other financial institutions, allows NC greater flexibility on rates and other terms. Through these partnerships, NC has raised lower-cost capital, which translates into competitive rates for our borrowers. These strategic partners include the following
NeighborWorks® America, NC's lead strategic partner, has invested more than $15.9 million of loan capital plus additional operating support allowing NC to leverage other private capital and philanthropic investments. Through an investment agreement, NeighborWorks has committed to double its capital investment in NC to grow the loan fund's capital base toward leveraging mainstream capital and meet the expanding capital needs of the network.
The John D. and Catherine T. MacArthur Foundation, a leading national foundation focused on the preservation of affordable housing, has invested $2.25 million of capital as a program related investment.
Bank of America, has invested $4 million in a Program Related Investment as part of its ongoing commitment to NC's lending activities
Ally Bank (formerly GMAC Bank), which has invested $5 million in support of NC's new Organizational Loan product for NWOs in Rocky Mountain District.
TD Bank, which recently invested $1.5 million in support of NC's lending in their market areas of the northeast and mid-atlantic areas.
The US Department of Treasury - CDFI Fund - which has recently awarded NC $1,500,000 in equity capital from their 2011 Financial Assistance program. This combined with a 2010 award of $750,000 brings the CDFI Fund's total equity capital to $2.25 million. In addition, NC has a low-interest loan with a principal amount outstanding of $334,000.
Calvert Foundation, a leading social investor in community development, has recently increased it investment, now totaling $1,500,000.
LENDING PARTNERS NeighborWorks Capital assists it borrowers by coordinating financing with other community development lenders who share our mission. This often assists in streamlining the underwriting and closing process and reduces transaction costs. Some current and previous partners include:
Boston Community Capital Community Housing Capital Enterprise Community Loan Fund Federation of Appalachian Housing Enterprises Housing Assistance Council Housing Partnership Fund Leviticus Fund National Housing Trust Partners For The Common Good Rural Community Assistance Corporation Rural LISC
NC enthusiastically seeks additional CDFI lending partners, social investors, loan participants and other opportunities to grow and leverage its funding. If your organization is interested in partnering with NeighborWorks® Capital through the provision of a capital investment or operating grant, please contact Jim Ferris at jferris@neighborworkscapital.org.
© 2011 NeighborWorks® Capital