March 17, 2010

On March 15, Treasury published in the Federal Register a Notice of Funding Availability (NOFA) for the FY 2010 funding round of the Capital Magnet Fund (CMF).  Non-profit organizations, with the development or management of affordable housing as at least one of their principal purposes, and certified Community Development Financial Institutions (CDFIs) are eligible to apply.  Application materials are due to the CDFI Fund on Thursday, April 15.

CMF funds can be used:

  • To provide loan loss reserves;
  • To capitalize a revolving loan fund; 
  • To capitalize an affordable housing fund; 
  • To capitalize a fund to support economic development activities or community service facilities; 
  • For risk-sharing loans; 
  • For loan guarantees; and 
  • To support operations.


The CMF was established by the Housing and Economic Recovery Act of 2008 (HERA).  Grants from the CMF are awarded competitively and the total award pool for FY 2010 is $80 million.  Applicants will be evaluated on their business strategy, leveraging strategy, community impact, and organizational capacity.

Additional information can be found on the CDFI Fund’s website.