California Community Reinvestment Corporation (CCRC) announced on August 18, 2026, a series of financing milestones that significantly increase its capital for affordable housing lending throughout California. The organization successfully closed a $114 million securitization of tax-exempt loans and secured $10.1 million in additional capital from existing bank partners, collectively boosting its lending capacity by more than $120 million.
This securitization marks a historic first: it is the first time a Community Development Financial Institution (CDFI), rather than a bank or government entity, has completed a securitization of tax-exempt loans in the public municipal market. The deal was structured in two tranches and drew strong demand from investors. Wells Fargo served as underwriter, and U.S. Bank acted as trustee and custodian.
Unlike most lenders, which sell or deliver loans to Fannie Mae or Freddie Mac at closing, CCRC retained these loans on its balance sheet before bringing them to the municipal market for securitization. This structure, which has been used by only a handful of financial institutions since it emerged in 2019, requires both operational capacity and a credit rating—capabilities that are rare among CDFIs nationally.
Alongside the securitization, several of CCRC's existing bank partners have expanded their commitments, bringing $10.1 million in new capital. Beneficial State Bank increased its loan pool contribution from $12.5 million to $15 million, an increase of $2.5 million, and separately made a new $2.5 million commitment to CCRC's Tax-Exempt Loan (TEL) pool. State Bank of India (California) increased its loan pool contribution from $1.9 million to $3 million, an increase of $1.1 million. Bank of America returned to CCRC's loan pool with a new $2 million commitment. Wells Fargo provided a $2 million patient capital loan designed to support shorter-term bridge lending that helps preserve affordable housing.
“Our bank partners are leaning in to show their continued commitment to CCRC with new investment dollars,” said Tia Boatman Patterson, President and CEO of California Community Reinvestment Corporation. “The securitization reflects years of work to build the infrastructure and track record needed to access the public markets. The increased commitments from our bank partners demonstrate the trust we've built with our investors and their continued commitment to financing affordable housing. Having the ability to recycle capital, lower our cost of funds, and continue expanding affordable housing finance opportunities is critical for our development sponsors and the California communities they serve.”
The combined effect of these transactions strengthens CCRC's ability to continue funding permanent loans for affordable multifamily housing developments across the state, supporting working families, seniors, veterans, and individuals experiencing or at risk of homelessness. This milestone underscores the growing role of CDFIs in addressing the affordable housing crisis and highlights innovative financing mechanisms that can be replicated by other community lenders.
