◾Impact Community Capital LLC is formed and commences operations in San Francisco, CA.
◾Impact purchased and securitized $40 million in affordable multifamily mortgages from the California Community Reinvestment Corporation (CCRC), a nonprofit multi-bank lending consortium financing affordable housing in California. The purchase of this pool of loans provides long-term capital support for 25 housing developments throughout the state serving low-income individuals, families, and seniors, in addition to providing liquidity to CCRC to originate more loans meeting its mission.
◾Impact certified by California Organized Investment Network (COIN) as a California Certified Development Financial Institution (CDFI).
◾Impact joined with Freddie Mac, California Bank & Trust, the California Housing Loan Insurance Fund, and the California NeighborWorks Organizations to offer a $25 million private-sector initiative to help more California families overcome income, credit, and savings barriers to affordable homeownership without public subsides. Impact established a revolving loan pool to finance below-market-rate second mortgages to help low-and moderate-income borrowers pay the required down payment and closing costs.
◾Impact purchased $124 million in affordable multifamily mortgages from Bank of America. The portfolio contains 7,108 units of affordable rental housing in 95 separate properties throughout California and other western states. The Bank of America transaction is the largest COIN-approved multifamily housing initiative to date. Properties include the Lyric Hotel in San Francisco, which supports independent living for emotionally disturbed adults; Las Casitas Apartments in Hayward, a 61-unit townhouse-style development that features solar-powered water heating; Parkside Apartments in downtown Los Angeles featuring 79 units in a five-story building within walking distance of the Staples Center and downtown shops and businesses; University Cooperative Housing in the Westwood area of Los Angeles; Casa Heiwa in the Little Tokyo area of downtown Los Angeles; and Harbor View Apartments in the Wilmington area of Los Angeles.
◾Impact securitized $164 million in affordable housing loans (comprised of the $40 million in CCRC affordable multifamily mortgages purchased in 2000 and the $124 million in affordable multifamily mortgages purchased in 2001 from Bank of America). The securitization is comprised of five tranches, with S&P rated tranches held by the Impact Members. The remaining unrated tranche is held by Impact on behalf of its Members.
◾Impact Community Capital CDE, an Impact affiliate, applied for a New Markets Tax Credit (NMTC) allocation through a competitive application process. Impact Community Capital CDE was later awarded a $40 million allocation as one of 66 allocatees selected in the first round in which 350 entities applied. The first round of NMTC was oversubscribed by over 10 times the available amount of tax credits. Impact Community Capital CDE will use its allocation in partnership with other CDFIs and community lenders to invest in community facilities to ensure the secure delivery of key services in low-income communities throughout California.
◾In partnership with Bank of America, Impact launched the Community Impact Loan (CIL) Program, a multi-year commitment to lend up to $475 million for new, affordable, multifamily residential developments. The CIL Program is a first-of-its-kind collaboration between the largest originator of community development loans in the U.S. and eight of the top national insurance companies which are Members of Impact. The program targets the creation of up to 15,000 new housing units for the benefit of low-income communities in California and throughout the United States.
◾Impact joined with the David and Lucile Packard Foundation and the Low Income Investment Fund to finance low-income childcare providers in California. The first-of-its-kind program provides low-income loans to expand and improve childcare and preschool facilities in low-income communities throughout California.
◾Impact purchased over $36 million of affordable multifamily housing mortgage loans from CCRC.
◾Impact and the National Cooperative Bank Development Corporation (now NCB Capital Impact) agree to finance community healthcare facilities in California. Loans will allow for the construction or expansion of healthcare facilities that provide comprehensive primary and preventative healthcare services. All facilities are community-based, directed by community boards and are accessible to all neighborhood residents.
◾Impact purchased $49 million in affordable multifamily housing mortgage loans from CCRC. The pool represents 48 properties supporting 2,377 affordable housing units in 39 communities across California.
◾Impact made one of the largest commitments to Pacific Coast Capital Partners’ CA Smart Growth Fund IV, which targets “smart growth” equity investments in CA real estate.
◾To support two large commercial centers providing jobs and economic development in Southern California, Impact invested $19 million plus a portion of its NMTC allocation.
◾Impact purchased $35 million in affordable multifamily housing mortgage loans from CCRC.
◾Impact made the largest commitment to Huntington Capital Partners’ fund to invest in growth and expansion of underserved small-and medium-sized businesses located predominantly in California.
◾Impact forms Impact Investment Adviser LLC, a registered investment adviser.
◾Impact securitized $302 million in affordable housing loans, with Barclays Capital as sole manager and bookrunner. The securitization resulted in 89% investment grade securities as rated by S&P, and consists of 176 first mortgage loans on affordable multifamily properties located in 24 states, including 100 properties located in California.
◾Impact investors purchased $28.9 million of loans to five community healthcare centers in California and one in Massachusetts. National Consumer Cooperative Bank retained a subordinate interest in the portfolio.
◾Impact deposited $11 million into 19 California certified CDFI banks and credit unions. The deposits were committed for a five year period and enabled these financial institutions to provide loans and capital in low and moderate income communities.
◾Impact accepted the role of Manager of an Historic Tax Credit investment in an educational non-profit museum and a non-profit advocacy group’s headquarters in San Francisco.
◾Impact securitized $215 million in affordable housing loans, with Wells Fargo Securities as sole manager and bookrunner. The securitization resulted in 97% investment grade securities as rated by S&P and DBRS, consisting of 60 first mortgage loans on 55 affordable multifamily mortgaged properties located in 24 states plus the District of Columbia. It was the first securitization to use Freddie Mac’s Q series program. Under this structure Freddie Mac guaranteed the top 88% of the securitization. The rating agencies did not consider the Freddie Mac guarantee in their ratings determination.
◾Impact securitized $107 million in affordable housing loans, with Wells Fargo Securities as sole manager and bookrunner. The securitization consisted of 124 first mortgage loans on 118 affordable multifamily mortgaged properties located in 22 states. Following the very successful securitization in 2014, this became the second securitization to use Freddie Mac’s Q series program. Freddie Mac increased its guarantee level, covering the top 92% of the securitization. As a result, the transaction was not rated.