Award from U.S. Treasury CDFI Fund will provide low-cost capital for low-income Florida residents
Florida Community Loan Fund, a statewide nonprofit lending institution, received a $3.7 million Equitable Recovery Program Award from the U.S. Department of Treasury Community Development Financial Institution Fund. FCLF will use the ERP Award to address the decreased availability of affordable housing for low-income families in majority minority communities, as a result of the COVID-19 pandemic.
Florida’s lack of affordable housing was well documented before the COVID-19 pandemic, consistently ranking as one of the worst states in the U.S. for low-income renters and homeowners. From 2020 to 2022, Florida saw a 40% increase in rental pricing, driven by several factors, including the influx of new residents to Florida, aggressive home purchases by investors, and escalating construction costs. Access to affordable housing is exacerbated in majority minority neighborhoods – 45% of minority households are cost-burdened, spending more than 30% of income on housing and related costs, compared to 29% of white households.
“We look forward to utilizing the new funding from the CDFI Fund to help make affordable housing a reality in minority communities statewide,” said FCLF CEO Ignacio Esteban.
The ERP award will allow FCLF to build on its 28-year history of providing capital for community development in low-income areas, with a sharp focus on minority communities throughout the state. This funding from the CDFI Fund will be integrated into FCLF’s existing work to help provide more affordable housing by reducing borrowing costs for developers of affordable housing.
FCLF borrowers develop affordable housing, both rental and for homeownership, in low- and moderate-income minority communities; for example:
- Fort Lauderdale CDC, offering affordable housing for rent and for sale in the Sistrunk community.
- Feeding Hope Village, providing affordable rental housing in Riviera Beach.
The U.S. Treasury CDFI Fund awarded more than $1.73 billion to 603 Community Development Financial Institutions across the country, to help low- and moderate-income communities recover from the COVID-19 pandemic and invest in long-term prosperity. FCLF is one of 19 awardees in Florida.
About Florida Community Loan Fund. Florida Community Loan Fund is a nonprofit, multifaceted financing entity with a 28-year history of providing flexible capital and expertise to nonprofit and mission-aligned for-profit entities that benefit people and places outside the economic mainstream across Florida. FCLF is nationally recognized for its work as a certified CDFI and CDE through the U.S. Dept. of Treasury and as a member of the Federal Home Loan Bank of Atlanta. www.fclf.org.
