PNC promises additional $1 million to Cincinnati Development Fund

PNC Bank has announced that it will increase its participation in the Cincinnati Development Fund (CDF) by $1 million, making more funds available to finance affordable housing development and community revitalization in Greater Cincinnati.

PNC's increase reflects its commitment to lending in the region's low- and moderate-income communities.

"CDF has proven that access to attractive and appropriately structured financing, coupled with sound technical assistance can be a catalyst for redevelopment of Greater Cincinnati’s most distressed communities," says Peg Moertl, senior vice president and territory manager, PNC Community Development Banking.  "PNC has been a longtime supporter of CDF because our participation provides them a cost-effective vehicle to deeply impact important communities by providing smaller but complex loans."

Since 1988, PNC has made $17.5 million in commitments to CDF, which CDF loan officer and consultant Alicia Townsend says is indicative of a strong belief in CDF's mission.

"PNC and CDF have a great relationship," she says.  "PNC is our partner in community development and revitalization.  Without their support and other institutions like them it would be very difficult if not near impossible to reach the customer base we do and to have the community impact that we have experienced."

To Townsend, the extra $1 million is a very big deal for CDF.

"It can mean the difference between a project moving forward in areas where traditional lenders aren’t willing to take on the individual risk," she says.  "It’s the reason CDF exist to partner with traditional financial institutions to invest in affordable and low-income housing."

CDF is celebrating its 20th year as a Community Development Financial Institution.

To date, CDF has financed projects totalling nearly $127 million, resulting in the creation of 3,014 units of housing.

Writer: Kevin LeMaster
Source: Alicia Townsend, loan officer and consultant, Cincinnati Development Fund