Wells Fargo & Company issued the following Press Release on March 31, 2011:
Richmond, Va. – March 31, 2011 – Wells Fargo & Company (NYSE: WFC) has made a $500,000 equity equivalent investment (EQ2) in Virginia Community Capital Inc. (VCC),a statewide community development financial institution (CDFI) headquartered in Richmond and focused on geographies and markets that are underserved by traditional capital sources. This EQ2 investment has a ten-year term and features a below-market fixed interest rate.
VCC will use the EQ2 proceeds to finance affordable housing through its Preservation Acquisition Loan program, which seeks to preserve expiring affordable use properties in mixed-income communities in Virginia. Oftentimes, these communities are undergoing change and gentrification that results in increased market-rate rents. By preserving these units as affordable, low-income families can continue to live in mixed-income communities.
“This integration of affordable housing into mixed-income communities also helps reduce the geographic concentration of poverty,” said Jane Henderson, president and CEO of VCC. “Rather than forcing low-income families into economically distressed neighborhoods, affordable housing programs enable families to live in healthier, more stable communities that have greater education and employment opportunities.”
VCC’s goals are to preserve the stock of safe, decent housing in low- and moderate-income neighborhoods in Virginia; create jobs by promoting new and expanding businesses and community facilities in underserved localities; and revitalize communities through the financing of new construction or rehabilitation and historic preservation in commercial districts.
“VCC is a long-time bank customer and we are proud to support its successful strategy for preserving rental housing in Virginia,” said Frank Cianciarulo of Wells Fargo Community Lending and Investment.
EQ2s are patient capital in the form of below-market-rate loans. This limited resource is reserved for Well Fargo non-profit community development partners that are working to expand affordable housing, job creation, and economic development in the communities where Wells Fargo does business.
About Virginia Community Capital, Inc.
Virginia Community Capital Inc. (VCC) is a statewide community development financial institution (CDFI) focused on geographies and markets that are underserved by traditional capital sources. Its mission is to offer innovative, flexible financial products designed to support housing and community development ventures, increase jobs and build sustainable communities. VCC provides both capital and technical assistance to neighborhoods and towns throughout Virginia.
VCC has a proven track record of creating positive community development impact through its lending activities, including financing the development and preservation of affordable housing. VCC’s loan portfolio, which includes loans it has originated through its subsidiary bank, includes over 100 loan originations totaling $49.2 million. In the last four years VCC’s lending program has financed the construction and rehabilitation of 3,493 units of housing; 652,541 square feet of commercial space; 142,381 square feet of new community facilities, including medical centers in underserved areas; and helped create or retain 733 jobs.
About Wells Fargo
Wells Fargo’s Community Lending and Investment division provides debt and equity capital for economic development, job creation and affordable housing in areas of need nationwide. For more about Wells Fargo Community Lending and Investment: www.wellsfargo.com/communitylendingandinvestment
Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. The Company promotes economic growth and self-sufficiency, education, social services, the arts and the environment in thousands of communities across North America. In 2008, the Company gave $226 million in grants to 14,000 nonprofits. Team members contributed 1.4 million volunteer hours and served on 16,000 nonprofit boards. The merger of Wells Fargo and Wachovia makes our presence twice as strong in the communities we serve. For more about Wells Fargo’s achievements in Social Responsibility: www.wellsfargo.com/about/csr.
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