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DONOR PROFILE: Washington Community Reinvestment Association
The Washington Community Reinvestment Association (WCRA) has been closely involved with Impact Capital from the time Impact Capital was established in 1994.
While Impact Capital focuses on pre-development and bridge loans for community development, WCRA is concerned with permanent loans that allow owners to offer quality rental housing at affordable prices.
Leaders of the two nonprofits sit on each other's boards, and WCRA provides annual grants to support Impact Capital's operating costs.
"We've been involved with Impact Capital since its inception," says Susan Duren, president of WCRA. "Impact Capital plays a significant role in providing affordable housing in Washington state, and we support that mission."
WCRA, founded in 1992, is a consortium that represents more than 40 member banks. By serving a risk-sharing function for affordable housing lenders, it encourages private-lender investment in real-estate based community development projects. WCRA's emphasis is on rental housing, with much of its lending benefitting low-income and special-needs communities, including veterans and low-income seniors.
WCRA has funded and committed more than $237 million in permanent loans and created more than 9,300 rental units tied to regulatory agreements. WCRA has provided financing for affordable rental housing in 32 of 39 Washington counties. It currently administers three revolving loan pools totaling $106 million and $7 million in a special fund to finance projects for emerging nonprofit borrowers.
Impact Capital and WCRA play critical roles in what Duren calls "the continuum of funding" for affordable housing in Washington state. At the start is Impact Capital, providing pre-development funding, bridge financing for acquisition and construction, and training to community development groups. In the middle are public and private lenders that fund housing development, and the Washington Housing Finance Commission, which grants tax credits to affordable housing developers. And at the end is WCRA, providing permanent loans that enable for-profit and nonprofit developers and owners to offer quality rental housing at affordable prices.
"Affordable housing lenders in other states envy Washington because we have a group like Impact Capital that can provide pre-development funding," Duren says. "It's something that most nonprofit groups need; they can't get pre-development funds from traditional banking sources."
While Impact Capital helps communities develop property for uses that include rental units, home ownership, and community facilities, WCRA focuses solely on affordable rental housing.
"The lower income residents in Washington, many of whom need special services, aren't looking for home ownership," Duren says. "For them, the availability of affordable rental housing is essential."
As a nonprofit membership organization, WCRA's funds are limited. But each year it has contributed a nominal amount to Impact Capital.
"We provide Impact Capital with operating dollars, which can be the hardest dollars to obtain," Duren says. "Our board feels strongly about continuing to support Impact Capital's work, at whatever level we can."
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