CDFIs: Boosting the Housing Supply

CDFIs help increase the housing supply by financing the construction, rehabilitation, and preservation of affordable housing. By providing flexible pre-development loans, shepherding tax credit projects, and supporting housing development with investment capital, CDFIs support multifamily housing projects, single-family homes, and mixed-use developments in low-income, rural, and historically underserved areas. Their financing often fills critical gaps in complex capital stacks, helping projects move forward that would otherwise stall due to higher perceived risk or insufficient returns for conventional lenders. These investments expand the availability of quality housing, reduce overcrowding, and help stabilize neighborhoods experiencing housing shortages.

The following stories illustrate how CDFIs increase the housing supply, helping address rising housing costs and improving long-term economic stability for families and communities.

Annual Impact: Over 45,000 affordable homes financed annually by CDFI FA recipients.