Partnership of Nonprofit Companies Form Impact-Driven Multifamily Mortgage Lender
The Community Preservation Corporation (CPC), National Equity Fund (NEF) and Cinnaire have formed a joint partnership called CPC Mortgage Company, a new lender specializing in multifamily agency loans with the goal of both expanding and preserving affordable and workforce housing, Commercial Observer has learned.
Formed with the intention of making housing investments more socially responsible, CPC Mortgage Company gives multifamily owners and investors access to capital while also supporting its members’ nonprofit work to better their communities.
According to a press release, “CPC Mortgage Company is the only nonprofit lender to offer Freddie Mac (FMCC), Fannie Mae (FNMA) and Federal Housing Administration (FHA) products, including conventional, affordable and small balance loans for the acquisition, refinance, rehabilitation and development of multifamily housing.”
“Our mission is to leverage the unique expertise of this partnership to bring flexible agency mortgage capital to communities to expand and preserve affordable and workforce housing,” John Cannon, president of CPC Mortgage Company, said in an announcement regarding the partnership. “We’re moving the mortgage industry towards a place where we can ask the question: Where do we need to be to make the biggest impact, and how can we use our unique skills and reach as nonprofits and affordable housing experts?”
As the new partnership launches, it will work with owners and investors of all sizes, with the goal of expanding and preserving affordable and workforce housing,
“At a time when we are facing a national housing availability and affordability crisis, we need to marshal our resources to expand and preserve housing in our communities,” said Rafael Cestero, CEO of The Community Preservation Corporation, in prepared remarks.
CPC is targeting multifamily owners in underserved areas as the best way to preserve affordable rentals, according to the release, rather than going the route of addressing agencies first.
“Cinnaire is acutely aware of the challenges that many developers face in accessing capital in the affordable housing industry, and we are committed to expanding access to financing that supports multifamily development in areas that need it most,” said Mark McDaniel, president and CEO at Cinnaire, in prepared remarks. “It was a priority for us to partner with organizations with the same mission, and we are looking forward to joining CPC and NEF in providing developers expanded access to quality financial tools to build equitable communities.”
With an increasing number of borrowers and institutional investors focusing on environmental, social and corporate governance (ESG) principles, CPC Mortgage Company offers to put its mortgage dollars to work by supporting social equity in communities. The revenue generated through CPC Mortgage Company will be invested in housing and community development across the country.
“At National Equity Fund, everything we do is in service of our mission to deliver innovative, collaborative financial solutions to expand the creation and preservation of affordable housing,” said Matt Reilein, president and CEO of NEF, in prepared remarks. “Our joint partnership in CPC Mortgage Company presents a powerful opportunity to offer additional nonprofit, mission-driven capital solutions for developers to build and maintain safe, stable and affordable housing to help residents and communities to thrive for the long term.”
Update: This story originally misattributed source material. This has been corrected. We apologize for the error.
Emily Fu can be reached at efu@commercialobserver.com.
