BlueHub Loan Fund Receives $6 Million in Capital Magnet Funds for Community Development
The U.S. Department of Treasury’s Community Development Financial Institutions (CDFI) Fund awarded $6 million in Capital Magnet Funds (CMF) to BlueHub Loan Fund on February 25, 2020. The award will support BlueHub’s work to finance affordable housing and other vital facilities in service of its mission to build healthy communities where low-income people live and work.
BlueHub will deploy the funds primarily to preserve and create affordable housing in low-income communities across the country. A portion of BlueHub’s award will support related facilities—such as daycare centers and health clinics—that provide essential services to affordable housing residents.
“The communities we serve are in the midst of a housing crisis, leaving many residents unable to cope with housing insecurity and its related impact on employment, health, and overall well-being,” said BlueHub Capital CEO Elyse Cherry. “This CMF award is instrumental in helping us further our strategy to address this crisis and stabilize neighborhoods by financing high-impact projects that meet community needs.”
BlueHub Loan Fund is one of 38 CDFIs and nonprofit housing organizations to receive a CMF award, following the CDFI Fund’s competitive review of over 110 applications. Congress created the CMF through the Housing and Economic Recovery Act (HERA) in 2008 to spur investment in affordable housing and economic development in low-income communities. This is the fourth consecutive year that BlueHub has received a CMF award, a recognition of its success in financing affordable housing and economic development projects.
Over its 35-year history, BlueHub Loan Fund has invested over $1.3 billion in community development projects aimed at enhancing the lives of individuals and families.