CPC Adds National Equity Fund, Cinnaire As Partners In CPC Mortgage Company To Form Industry’s Only Impact-Driven Multifamily Mortgage Lender

Sector-Defining Partnership of Nonprofit Companies Bring Social Responsibility Lens to Mortgage Lending With Focus on Affordable, Workforce Housing

August 8, 2022 – Today, The Community Preservation Corporation (CPC), National Equity Fund (NEF), and Cinnaire announced their joint partnership in CPC Mortgage Company, a national mortgage lending company specializing in multifamily Agency finance products. This first-of-its-kind cooperative leverages the resources and expertise of its three nonprofit owners to increase access to flexible Agency mortgage capital in communities where it is needed most, with the goal of expanding and preserving affordable and workforce housing. CPC Mortgage Company also provides a new avenue for socially responsible investments in housing, giving multifamily owners and investors an opportunity to access permanent capital, while supporting and advancing its members’ nonprofit work to create a positive impact in communities.

CPC Mortgage Company is the only nonprofit lender with a suite of Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) products including conventional, affordable, and small balance lending 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. 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,” said John Cannon, President of CPC Mortgage Company. “Whether it’s affordable, conventional, or small we look at every deal through a lens of impact and potential, and every borrower and every transaction has the ability to help us continue our work of investing in communities.”

“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. When we originally launched CPC Mortgage Company, our goal was to use our unique experience as a nonprofit lender to reach multifamily owners who either didn’t have access to agency products, or didn’t have the technical expertise needed to take advantage of them. We’re extremely pleased to have two mission-aligned companies like Cinnaire and NEF joining us to help expand our impact and ability to reach the owners and communities that are most in need,” said Rafael E. Cestero, CEO of The Community Preservation Corporation.

“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. “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.”

“At National Equity Fund, our mission is to create and deliver innovative, collaborative financial solutions to expand the creation and preservation of affordable housing,” said Matt Reilein, president and CEO of NEF. “As access to safe, stable, and affordable housing reaches crisis levels never seen before, we have to be thinking bigger. Our one-of-a-kind partnership in CPC Mortgage Company presents a powerful opportunity to combine forces with other nonprofit, impact-driven partners to bring new financial solutions to the table as another tool to help developers to succeed and residents to thrive.”

CPC Mortgage Company is the only Agency seller/servicer bringing an impact model to mortgage lending. CPC Mortgage Company works with owners and investors of all sizes, who are seeking a like-minded partner that understands the unique capital needs of their housing stock, to increase access to flexible agency capital with the ultimate goal of expanding and preserving affordable and workforce housing,

CPC Mortgage Company is a mission-aligned partner helping Freddie Mac and Fannie Mae achieve their goals under Duty to Serve plans. By reaching beyond the traditional Agency customer base to owners of multifamily rental properties in overlooked and underserved communities, the new cooperative owners of CPC Mortgage Company aim to preserve the stability and affordability of rental housing in neighborhoods where it’s needed most.

For borrowers and institutional investors who are focused on Environment, Social, and Governance (ESG) principals, CPC Mortgage Company provides the unique opportunity to put their mortgage dollars to work supporting social equity in communities. The revenue generated through CPC Mortgage Company’s lending and servicing supports its three members’ nonprofit missions and work to create a positive social impact through their investments in housing and community development across the country.

By doing business with CPC Mortgage Company, its customers are helping CPC, Cinnaire and NEF create more sustainable communities, address issues of racial equity in housing and development, and expand and preserve affordable and workforce housing in underserved communities.

CPC Mortgage Company was initially launched as a fully-owned subsidiary of CPC in Fiscal Year 2019, with its focus on bringing the company’s expertise in affordable housing and small building finance to the mortgage market. In Fiscal Year 2022 CPC Mortgage Company executed more than $560 million in Agency originations, keeping up a pace of roughly 32 percent year over year growth. Since inception, 97 percent of units financed by CPC Mortgage Company have been affordable, 77 percent being affordable to households earning less than 80 percent of area median income.

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About CPC Mortgage Company

CPC Mortgage Company is the only cooperative of impact-driven, nonprofit mortgage lenders and investors. This innovative model leverages the unique expertise of its cooperative owners, with the shared goal of bringing flexible capital to communities to expand and preserve affordable and workforce housing. Offering a suite of Freddie Mac, Fannie Mae, and Federal Housing Administration (FHA) multifamily finance products, CPC Mortgage Company’s scope includes conventional, affordable, and small balance lending for the acquisition, refinance, rehabilitation and development of multifamily housing. CPC Mortgage Company brings together the deep lending experience, commitment to service, transparency and geographic reach of managing member The Community Preservation Corporation and co-owners Cinnaire and National Equity Fund. Revenue generated by CPC Mortgage Company supports its mission-aligned members’ work to create a positive social impact through investments in housing and community development. Visit CPC Mortgage Company’s website, LinkedIn, Twitter, & Facebook pages.

About The Community Preservation Corporation (CPC)

CPC is a nonprofit multifamily finance company that was founded in 1974 to provide financial resources to stabilize and revitalize underserved communities. Today, CPC uses its unique expertise in housing finance and public policy to expand access to affordable housing, advance diversity and equity within the development industry, and impact the effects of climate change in our communities through the financing of sustainable housing. Since its founding, CPC has invested over $13 billion to finance the creation and preservation of more than 220,000 units of housing through its lending and investing platforms. CPC is a carbon neutral company and has been rated AA- by S&P. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.

About Cinnaire

Cinnaire is a non-profit financial partner that supports affordable housing developments along with community and economic revitalization initiatives through creative investments, loans and real estate development services. Since 1993, Cinnaire has invested $4.9 billion to support the development of 863 housing communities in 10 states, providing 53,146 affordable apartment homes for more than 114,000 individuals and families and has provided community development loans to support the creation/retention of more than 4.7 million square feet of commercial, mixed-use, and community space. In its mission to change lives and transform neighborhoods into thriving communities, Cinnaire has helped to create or retain over 80,000 jobs and spur $9.3 billion in economic impact. https://cinnaire.com

About National Equity Fund (NEF)

National Equity Fund, Inc., is a leading nonprofit Low-Income Housing Tax Credit (LIHTC) syndicator with a mission to create and deliver innovative, collaborative financial solutions to expand the creation and preservation of affordable housing. Through its diverse multi- and single-investor funds, NEF generates opportunities rooted in its vision that all individuals and families across the country have access to stable, safe and affordable homes. Since 1987, NEF has invested more than $20.6 billion, creating 215,500 homes for people across the country. NEF is a Chicago-based affiliate of LISC and has donated $210 million in grants to support LISC’s community investment efforts. To learn more, visit www.nefinc.org