US cities are increasingly focused on transit-oriented development (TOD), policy used to expand the stock of mixed-use (commercial and residential) development near public transit stations. Community Development Financial Institutions (CDFIs), financial institutions devoted to ensuring low- and moderate-income people and communities have access to the investment capital and financial services, are becoming strong participants in these projects. Through special purpose funds, they leverage state and local monies, philanthropic investment, and the CDFI’s own equity to attract larger quantities of market-rate senior debt. The funds’ combined capital stack provides lower-cost debt to finance land acquisition, affordable housing development, and related community and commercial facilities along transit corridors. This brief details learning from the work in Denver.
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