Cinnaire, NEF Join CPC Lending Platform

3 min read

The vehicle will expand and preserve affordable and workforce housing.

Photo by Scott Graham on Unsplash
Photo by Scott Graham on Unsplash

The Community Preservation Corp., National Equity Fund and Cinnaire have become partners in CPC Mortgage Co., to create the industry’s only impact-driven multifamily mortgage lending platform while expanding and preserving affordable and workforce housing.

The first-of-its-kind cooperative will leverage the resources and expertise of the three nonprofit organizations to increase access to flexible agency mortgage capital to more communities for the most impact.

The partnership has already started producing results. Approximately seven loans totaling $100 million in GSE financing have closed and a number of active deals are in the pipeline, according to CPC Mortgage Co.

CPC Mortgage Co. was launched in February 2019 as a fully-owned subsidiary of CPC, a nonprofit affordable housing and community revitalization finance company, with a focus on bringing the company’s expertise in affordable housing and small building finance to the national mortgage market. CPC Mortgage Co. is the only nonprofit lending with a suite of Freddie Mac, Fannie Mae and Federal Housing Administration products including conventional, affordable and small balance lending for the acquisition, refinance, rehabilitation and development of multifamily housing.

John Cannon, CPC Mortgage Co. president, told Multi-Housing News the firm has closed more than $3 billion in agency originations on deals in more than 20 states. From July 1, 2021, to June 30, 2022, CPC Mortgage Co. originated $561 million in 75 transactions across 11 states. In June, CPC Mortgage Co. provided $105.7 million in financing to Ginosko Development Co. and L+M Development Partners to acquire and preserve 1,370 units of affordable housing across seven properties in Michigan.

“CPC’s goal has been to expand CPC Mortgage Company’s impact and ability to bring agency capital to new communities and borrowers by continuing to expand its volume and geographic reach. About 18 months ago, we started a process of looking at other companies in the space that we could bring in as partners to help with that expansion,” Cannon told MHN.

He said NEF and Cinnaire were a natural fit.

Sharing Mission, Values

“Both are like-minded nonprofits that share our mission and values and are very well-known and respected in the affordable housing space, and both transact at scale,” Cannon said.

He noted both nonprofits are focused on creating impact in communities through investments in housing and have strong footprints regionally and nationally.

“From those standpoints, it’s a very strong, very aligned relationship,” Cannon told MHN.

Susan Frank, executive vice president of Business Development at Cinnaire, said in a prepared statement the nonprofit had been seeking to expand its lending platform for some time by partnering with an organization with a full suite of agency products. Cinnaire is a nonprofit financial partner that supports affordable housing developments and revitalization initiatives through creative investments, loans and development services. Since 1993, Cinnaire has invested $4.9 billion to support the development of 863 housing communities in 10 states. In September 2021, Cinnaire closed a $175.7 million Low Income Housing Tax Credit multi-investor equity fund that financed the development or preservation of 1,648 affordable homes and 2,441 bedrooms in five states.

Mark McDaniel, president & CEO at Cinnaire, noted that many developers face challenges accessing capital for affordable housing projects. He said in prepared remarks it was a priority for the firm to partner with organizations with the same mission to provide developers quality financial tools to build equitable communities.

Matt Reilein, NEF president & CEO, said in a prepared statement the joint partnership with CPC Mortgage Co. 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 thrive long-term.

Since 1987, NEF has invested more than $20.6 billion, creating 215,500 homes for people across the country. A nonprofit LIHTC syndicator that provides innovative, collaborative financial solutions, NEF has diverse multi- and single-investor funds. In July, Bridge Housing Corp. secured $250 million in funding from Morgan Stanley and NEF in a program that promotes affordable and workforce housing for residents in the 30 percent to 120 percent Area Median Income range.

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