California Community Reinvestment Corporation (CCRC) has closed a $114 million securitization of tax-exempt loans, in what it described as the first securitization by a Community Development Financial Institution (CDFI) of affordable housing multifamily loans in the municipal market.

The transaction was structured in two tranches, was 4.8 times oversubscribed, and achieved highly competitive pricing, including the strongest pricing to date for the Class A-1 tranche. Wells Fargo served as underwriter for the transaction, while U.S. Bank acted as trustee and custodian.

The securitization pool included tax-exempt loans secured by 21 affordable housing properties with a combined 1,573 units. The properties serve families, seniors, veterans, and formerly homeless households. CCRC originated and funded all of the loans in the pool and will continue to service the portfolio while providing ongoing asset management services.

CCRC originated the loans through its tax-exempt loan program. Tax-exempt multifamily financing is commonly used in affordable housing because interest income on qualifying municipal bonds can be exempt from federal income tax, helping support lower-cost debt for eligible projects. The organization said its use of the municipal market represents a new strategy for recycling program capital: by securitizing seasoned loans, a lender can raise new funding while retaining servicing and asset management responsibilities.

The structure has been used by only a handful of financial institutions since it first emerged in 2019, and it requires significant operational capacity and a strong credit profile, capabilities that are uncommon among CDFIs nationally.

“Affordable housing lending depends on having the capital available to keep lending, and this transaction gives us exactly that,” said Tia Boatman Patterson, President and CEO of CCRC. “By recycling capital already deployed in our loan portfolio, we’re able to continue financing the developers and communities that need it most, without waiting on new sources of funding.”

The capital raised through the securitization strengthens CCRC’s ability to continue funding permanent loans for affordable multifamily housing developments across California. The financing supports housing for working families, seniors, veterans, and individuals experiencing or at risk of homelessness. The approach may provide a model for other CDFIs seeking to increase lending capacity amid ongoing affordable housing shortages, particularly as nonprofit and mission-driven lenders look for ways to extend balance-sheet capacity without relying solely on new grants, deposits, or equity-like capital.

CCRC is a California CDFI multifamily affordable housing lender focused on the state’s affordable housing crisis. Its lending products provide term financing for affordable multifamily rental housing and support the creation of low-cost housing for vulnerable individuals and families. More information is available at