The U.S. Department of the Treasury has announced that 48 organizations will receive $246.4 million to support the development of affordable housing and community facilities aimed at low-income families and communities in need of investment. The funding is part of the fiscal year 2024 round of the Capital Magnet Fund (CMF) awards.

The awarded funds will be used for financing various projects, including preserving, rehabilitating, developing, or purchasing affordable housing units. The funds will also support economic development facilities such as daycare centers, workforce development centers, and healthcare clinics.

“Today’s awards will increase affordable housing supply and expand access to child care and health care for families across America,” said Secretary of the Treasury Janet L. Yellen. “These awards are projected to leverage nearly $9 billion in private and public sector resources to spur development in communities that need additional investment to create opportunities for communities to get ahead.”

Awardees are expected to leverage their funds with other investments at a minimum ratio of 10:1. Collectively, they anticipate leveraging more than $6.8 billion in private investment.

The recipients include Community Development Financial Institutions (CDFIs) and nonprofit housing organizations, with a total of 25 CDFIs among them. These organizations plan to serve all 50 states, along with the District of Columbia, Guam, and Puerto Rico. Notably, 25 awardees intend to invest part of their funds in rural areas.

The competitive selection process involved applications from 136 organizations requesting over $1 billion from the CMF's FY 2024 round.

This initiative is expected to result in over 26,400 affordable housing units being developed or preserved—more than 25,600 rental units and over 750 homeownership units.

Since its inception under the Housing and Economic Recovery Act of 2008, the Capital Magnet Fund has facilitated the creation of more than 63,000 affordable homes across different categories.

In addition to these efforts through CMF, since its establishment in 1994, the CDFI Fund has distributed over $8 billion through various programs designed to bolster community development initiatives nationwide.