New Jersey Community Capital’s Lending Through CDFI Bond Guarantee Program Reaches Critical Milestone
New Brunswick, NJ (October 1, 2020) – New Jersey Community Capital (NJCC) recently announced that it has fully deployed $28 million in bond loans through the United States Treasury Department’s 2015 CDFI Bond Guarantee Program.
Administered by the US Treasury’s CDFI Fund, the Bond Guarantee Program provides federally-certified Community Development Financial Institutions (CDFIs) with long-term, reliable capital from Qualified Issuers to finance community development projects that spur economic development in low-income communities. The program provided NJCC with 30-year, fixed rate capital, which was made available to CDFIs for the first time in 2015. The bond financing has helped drive the growth of NJCC’s loan portfolio. NJCC can now provide mission-aligned borrowers long-term capital options that were previously unavailable, increasing the types of loan products offered and the number of borrowers served.
“This investment has allowed us to deliver critical capital to meet the needs of mission-aligned developers who play a critical role in driving local economic growth in the underserved communities we serve,” said Leah Apgar, Managing Director of Lending of NJCC. “We are thrilled to reach this milestone and provide affordable capital with longer loan terms to finance large-scale transformative projects that create equitable opportunities for all.”
“We at New Community Corporation were able to refinance two of our properties with NJCC: Harmony House, our transitional housing facility for homeless families, and a property that serves as an educational space,” said Richard Rohrman, CEO of New Community Corporation. “The financial support has helped us continue to fulfill our mission to help residents of inner cities improve the quality of their lives to reflect individual God-given dignity and personal achievement.”
“OFN is proud to support the work of NJCC and our member CDFIs through the issuance of this bond, to spur catalytic economic development in low-income communities across the country,” said Amir Kirkwood, Chief Lending and Investment Officer of Opportunity Finance Network. “By reaching this critical milestone, NJCC is uniquely positioned to provide affordable and accessible long-term capital to communities that need it the most.”
In 2015, NJCC became one of seven CDFIs across the nation that closed on the multi-party bond totaling $127 million, the largest group of bond participants in a single bond issue to date. Opportunity Finance Network was the Qualified Issuer.
NJCC completed 24 transactions under the bond issue, providing long-term, fixed rate financing for community development projects in underserved communities across New Jersey. These transactions span a diverse set of sectors and have supported the development of charter schools and affordable rental housing projects, including scattered-site housing and preservation projects.
In 2019, NJCC received an additional $25 million in bond financing to deploy to eligible borrower projects.
###
To learn more about how we meet the needs of the communities we serve, please contact Caroline White, Communications Manager at New Jersey Community Capital by email at cwhite@njclf.com.
About New Jersey Community Capital
New Jersey Community Capital is a nonprofit community development financial institution (CDFI) helping to foster more equitable and inclusive communities. Through integrative models of financial products, programs and services, we expand opportunities that strengthen neighborhoods and ensure that underserved communities can thrive. To learn more, please visit www.newjerseycommunitycapital.org or Twitter: @NJCLF.
About New Community Corporation (NCC)
New Community Corporation (www.newcommunity.org) was founded in 1968 in Newark, N.J., by Monsignor William J. Linder and a small group of community residents during a time of civil unrest that was spreading throughout urban communities across the United States. NCC has grown to become one of the largest and most comprehensive community development organizations in the country, providing services ranging from housing and health care to education and banking services. New Community Corporation’s mission is to help residents of inner cities improve the quality of their lives to reflect individual God-given dignity and personal achievement. Included in the network is close to 2,000 units of housing for families and seniors; an accredited post-secondary career and technical school; a 180-bed nursing home; a one-stop Family Resource Success Center; a transitional housing facility for homeless families; Adult Learning Center; a federally-insured Federal Credit Union; Financial Opportunity Center; two early learning centers; and after school, recreational and summer camp programs for youth.
About Opportunity Finance Network (OFN)
Opportunity Finance Network (OFN), the national network of community development financial institutions (CDFIs), strives to ensure low-income and other under-resourced communities have access to affordable, responsible financial products and services. Members of OFN are CDFIs that deliver responsible lending to help low-income communities join the economic mainstream. For more information, visit www.ofn.org.