FOR IMMEDIATE RELEASE: Thursday, February 25, 2021
CONTACT: Lisa Patlis, (802) 861-3814
U.S. Treasury Awards Evernorth $950,000 to Support Affordable Housing
Capital Magnet Fund grant will extend lending program into New Hampshire and Maine
On Monday, February 22, 2021, The U.S. Department of the Treasury’s Community Development Fund (CDFI Fund) awarded Evernorth $950,000 for the development of affordable housing in low income areas in New Hampshire and Maine. This award was made through the FY 2020 round of the Capital Magnet Fund (CMF) to 48 organizations from across the country and from a pool of $175.35 million.
With a prior $2M CMF award Housing Vermont (now part of Evernorth) financed over 900 units over the past five years. This new award will allow Evernorth to extend its financing program into New Hampshire and Maine where it has provided equity financing to 2,429 apartments in the past 5 years.
Evernorth will deploy the $950,000 with below market rates and terms by addressing 3 gaps in available financing: 1) early stage predevelopment capital, 2) financing to bridge receipt of tax credit equity and other committed subsidies, and 3) permanent financing for energy upgrades in existing affordable housing stock in New Hampshire and Maine. The funds are expected to promote the production and preservation of more than 500 affordable rental apartments over the next five years.
The organization recently hired Deborah Flannery to a newly created position of Vice President of Lending to lead Evernorth’s lending work across northern New England. Lending to affordable housing has been part of its business for the past two decades. Evernorth has a history of providing bridge financing, pre-development financing and small capital loans to affordable housing developers.
“The lack of affordable housing across our northern New England states is a staggering challenge for low income households. Having these new federal resources will help us to produce and finance more affordable homes,” said,Deborah Flannery, Vice President, Lending, Evernorth.
Overall, the Treasury Department made 48 awards that will collectively serve all 50 states, the District of Columbia, and Puerto Rico. The 48 awardees were selected after a merit-based competitive review of applications submitted from a total of 137 organizations that requested more than $642.2 million from the Capital Magnet Fund for the FY 2020 round.
“I am very proud to present the largest round of Capital Magnet Fund awards in the history of the program,” said CDFI Fund Director Jodie Harris. “Not only is this the largest dollar amount ever awarded
through the program, it is also the largest number of awarded organizations in a single round, leading to more essential investments in affordable housing and related community services across the country.”
The Capital Magnet Fund provides competitively awarded grants to Community Development Financial Institutions (CDFIs) and qualified non-profit housing organizations, like Evernorth, to finance the development of affordable housing and community facilities in low-income communities.
These awards were made through the fiscal year (FY) 2020 round of the Capital Magnet Fund, and will support financing for the preservation, rehabilitation, development or purchase of affordable housing for low-income communities; as well as related economic development and community service facilities such as day care centers, workforce development centers and health care clinics. Awardees are required to leverage their awards with other private and public investment by at least 10 to 1, guaranteeing that a minimum of $1.75 billion will be invested in eligible projects across the United States.
For more information about Evernorth’s lending programs, please contact Deborah Flannery, Vice President, Lending, at DFlannery@evernorthus.org or at 651-696-5341