Clearinghouse CDFI has three primary lines of business, Core lending, Single-Family lending and New Markets Tax Credit lending. Core lending is below-market rate; real-estate based lending benefitting low-income communities and residents. Single-Family lending provides below-market, fixed-rate financing to first-time homebuyers. The New Markets Tax Credit program uses a combination of below-market interest rate lending and equity investments to provide financing for projects located in highly distressed communities.
Clearinghouse CDFI has a unique philosophy in which we offer no specific "loan programs". Rather, we insist on funding loans that meet the following requirements:
- All loans must provide a tangible net benefit to the low-income community, or low-income populations, including non-profit organizations.
- Clearinghouse's borrower must demonstrate a reasonable ability for repayment.
- The credit must be unavailable or have excessive cost in the conventional market place.
As a result of this philosophy, Clearinghouse CDFI has funded a wide variety of unique and impactful loans. In terms, allows us to continue to sustain our mission in providing unmet credit needs in the communities we serve.
Clearinghouse finances are designated for low-income households (those making 80 percent or less of the area median). We give priority to developmental projects that target a greater percentage of the units to low-income households and/or target tenants making 60 percent or less of the area median. In 2007, Clearinghouse loans have served over 3,000 low income people throughout the California.
Loans for affordable housing represent the largest category of lending over the past 10 years. The majority of these loans are for the creation or preservation of affordable for sale and rental housing. These loans are made to non-profit organizations with a mission to build and preserve special needs housing, affordable housing, and rental housing units. In addition, Clearinghouse CDFI funded different community development projects including: charter school sites, child care centers, multi cultural facilities, job training centers and dental clinics serving low income people. Clearinghouse's loans provide tremendous impact on the lives of low-income residents. The funding of such loans has enabled us to excel as one of the largest community facilities lenders in California. We are proud in our efforts to build, maintain and strengthen the educational, health, and social facilities that are critical to a neighborhood's development.
In 2007, part of the New Markets Tax Credits program, Clearinghouse CDFI funded a $12.5 million below-market rate loan and $5.2 million equity investment providing permanent financing for a theatre in the downtown Old Town Salinas Redevelopment District. Maya Old Town Cinemas was completed and started operations in July 2005. The project is located in the heart of downtown Salinas, CA leading a resurgence of surrounding economic activity and has replaced several vacant and derelict buildings and lots in the area. Full Story