California Investment and Innovation Fund Program Disburses First Round of $15M to Support CDFI’s Working to Build Affordable Housing, Support Small Businesses, and Deliver Child Care Facilities
Sacramento, CA – February 1, 2023 – California Coalition for Community Investment (CCCI), a statewide coalition of Community Development Financial Institutions (CDFIs) serving California, proudly announces its pivotal involvement in the $50M grant from the State Treasurer’s Office for its California Investment and Innovation Fund Program (Cal IIP).
The first round of $15M will be distributed to over 60 CDFIs across California to invest in some of the state’s greatest needs, including building affordable housing and supporting small businesses. CDFIs are mission-driven lenders that provide responsible financial products and services where mainstream finance doesn’t traditionally invest.
In 2022, the Legislature created Cal IIP, a grant program to empower CDFIs in providing vital programs, including lending and technical assistance, to economically disadvantaged communities across California.
A result of over two years of advocacy by the California Coalition for Community Investment (CCCI), the Cal IIP Fund was established in the 2022-2023 state budget, committing $50 million to grant funding over multiple years. The funding is directed to CDFIs who use the funds to help deliver low-cost loans, grants and expert assistance to low-income communities for a variety of community needs, including facilitating the construction of affordable housing projects throughout the state.
Because CDFIs raise up to $8 dollars in private sector investment for every $1 in public funding, the Cal IIP Fund will help attract additional private funding to address the state’s priorities. According to US Treasury Department data, in 2021 CDFIs invested nearly $4 billion in California.
“The Cal IIP program is a critical development tool to help California’s underserved communities overcome economic challenges and I’m thrilled to be putting this money to use,” said California State Treasurer Fiona Ma. “Partners like CCCI empower CDFIs to maximize these resources and serve their communities with programs and services that meet their unique needs.”
One of the beneficiaries of this grant will be Housing Trust Silicon Valley, a nonprofit community loan fund, that has loaned more than $554 million towards the development of affordable homes throughout the greater Bay Area. Housing Trust has created more than 26,000 affordable housing opportunities and helped nearly 50,000 people. It is the first nonprofit CDFI to receive a Standard & Poor’s rating, AA- because of its strong capacity to meet financial commitments.
“This is an incredible opportunity for CDFIs across the state” said Noni Ramos, CEO of Housing Trust Silicon Valley and Chair of the CCCI. “This visionary fund exemplifies the Legislature’s commitment to economic equity and resilience in communities statewide. Housing Trust is thrilled to continue its efforts in the greater Bay Area region, with the support of the Cal IIP Fund grant, to provide affordable housing that is so critically needed across California.”
For more information about California Coalition for Community Investment, go to https://calcci.org/
For more information about Housing Trust Silicon Valley, go to https://housingtrustsv.org/