Ohio Capital Finance Corporation (OCFC) Awarded $5M from the Capital Magnet Fund

(Only 23 of 230 applicants were awarded funding from this inaugural round of the Capital Magnet Fund , a program of the Community Development Financial Institutions Fund - US Department of the Treasury)

Oct 20, 2010, 12:06 ET from Ohio Capital Finance Corporation

COLUMBUS, Ohio, Oct. 20 /PRNewswire/ -- The U.S. Department of Treasury's Community Development Financial Institutions (CDFI) Fund announced that the Ohio Capital Finance Corporation, an affiliate of the Ohio Capital Corporation for Housing, was awarded $5,000,000 from the Capital Magnet Fund to assist in stimulating and leveraging private capital for affordable housing throughout Ohio and Kentucky.  

"OCFC is honored to receive this $5 million award of Capital Magnet Funds from the CDFI Fund," said Hal Keller, President of Ohio Capital Corporation for Housing. "This award will be utilized to reduce total project construction interest costs while leveraging additional investment."

Through the Capital Magnet Fund award, OCFC will use the $5 million to leverage financing of affordable rental housing by creating a revolving equity bridge loan program.  

Jon Welty, President of OCFC, stated "OCFC is pleased and honored that the CDFI Fund acknowledged our highly effective approach to financing affordable housing, with a $5M investment, in the first Capital Magnet Fund competition. The CDFI Fund received 230 applications and made only 23 awards. This grant creates an exciting opportunity for OCFC to provide and leverage additional dollars for affordable housing in Ohio and Kentucky. We are particularly grateful that OCFC received the second largest award made under this round."

The Ohio Capital Finance Corporation was created in 2002 to provide a flexible source of capital through predevelopment and acquisition loans to developers of affordable housing.  To date, the OCFC and its sponsored loan funds has loaned over $62 million through 190 loans utilized to develop and preserve more than 2,100 units of affordable housing across Ohio, as well as additional units in Kentucky.

Ohio Capital Corporation for Housing is a non-profit financial intermediary that provides developers of affordable housing with access to capital markets. Created in 1989 by the Ohio Housing Finance Agency, OCCH has raised over $1.8 billion in private corporate equity investments, financed more than 24,000 units of affordable housing, and assisted in the creation of more than 450 affordable projects.

Read the full CDFI Fund Press Release on the OCCH web site at www.occh.org

Also, please see Senator Brown's Press Release at: http://brown.senate.gov/newsroom/press_releases/release/?id=d918c536-b01a-4a54-815a-41160c0186d5

SOURCE Ohio Capital Finance Corporation