In a First for a CDFI, Century Housing Launches Commercial Paper Program

Sustainability-labeled commercial paper program designed by U.S. Bank will help fund affordable housing developments in California

MINNEAPOLIS (December 20, 2022) – Century Housing Corporation and U.S. Bank announced today that they have utilized an innovative capital markets solution to help fund Century’s affordable housing development projects.

Century’s new sustainability-labeled commercial paper program provides the organization with affordable short-term funding, while also enabling investors to invest directly in securities that finance energy-efficient, affordable housing developments across California. While commercial paper programs are a common mechanism for large businesses to fund operations, this is the first introduced by a Community Development Financial Institution (CDFI). U.S. Bank serves as Commercial Paper Dealer and Sustainability Coordinator on this innovative transaction.

“Century is driven by its mission to meaningfully increase the supply of truly affordable housing in the communities it serves,” said Alan Hoffman, Chief Financial Officer of Century Housing. “This program will provide Century with increased capital to scale its work.”

“Century Housing Corporation consistently works to identify innovative ways to finance its affordable housing lending operations in California, so it is fitting that they would become the first CDFI to launch a sustainability commercial paper program,” said Zack Boyers, Chief Executive Officer, U.S. Bancorp Community Development Corporation (USBCDC). “For investors, it presents an opportunity to invest in an affordable housing initiative that closely tracks and shares details on the impact of its projects.”

The commercial paper program, rated A1+ by S&P Global and F1+ by Fitch, will raise up to $100 million from investors, which Century will lend to affordable housing developers. Most Century-financed projects are typically retrofitted for energy efficiency; transit-oriented; and/or receive low-income housing tax credits. Over the past 27 years, Century has provided financing for more than 50,000 new affordable and workforce homes.

USBCDC has partnered with Century since 2015, providing traditional financing to support its successful affordable housing initiatives. USBCDC and U.S. Bank’s capital markets division – a top commercial paper dealer – worked together to design this commercial paper program and bring it to market. The securities sold through the program are labeled sustainability notes as they are designed within Century’s Sustainability Bond Framework. The framework, confirmed by a second party opinion to comport with ICMA guidelines, sets strict use of proceeds rules that align with Century’s mission of building sustainable communities by financing the supply of quality affordable housing.

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Contact: 

Sara Williams, Century Housing Corporation
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Todd Deutsch, U.S. Bank Public Affairs & Communications
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About Century Housing Corporation
Century Housing Corporation is a mission-driven Community Development Financial Institution (CDFI) that finances quality, affordable housing throughout California to provide dignified homes, healthy and hopeful futures, and economic independence to the people we serve. From our start as a state agency and through our past 27 years as a private non-profit, Century has invested more than $2 billion to create and preserve over 50,000 homes while creating thousands of construction jobs. Century-financed developments showcase a unique legacy of serving our triple bottom line: positive financial, social, and environmental outcomes supporting a more just and sustainable future in the places where help is needed most. Century Housing is based in Culver City, California.

About U.S. Bancorp Community Development Corporation:
With $39.57 billion in tax credit equity committed as of Nov. 30, 2022, U.S. Bancorp Community Development Corporation, a subsidiary of U.S. Bank, provides innovative financing solutions for community development projects across the country using state and federally sponsored tax credit programs. USBCDC’s commitments provide capital investment to areas that need it the most and contribute to the creation of new jobs, the rehabilitation of historic buildings, the construction of needed affordable housing, the development of renewable energy facilities, and the generation of commercial economic activity in underserved communities. Visit USBCDC on the web at www.usbank.com/cdc.

Investment products and services are:
NOT A DEPOSIT • NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Century Housing Reaches $100 Million Milestone in Distribution of Century Sustainable Impact Notes Targeting Affordable Housing Development

Impact Investments Promote Sustainable and Energy Efficient Building Practices

Century Housing has achieved a significant impact investing milestone by issuing more than $100 million of Century Sustainable Impact Notes (“Notes”), the net proceeds of which refinance existing indebtedness and finance affordable housing developed with energy efficient features, sustainably sourced materials, and in close proximity to job centers and public transit.

Century Sustainable Impact Notes provide institutional and retail investors a unique opportunity to align financial goals with personal principles through values-based investing. Since the Notes became available in February 2021, investors have helped Century finance more than 5,400 affordable apartment homes, about 74% of which are also financed with Low Income Housing Tax Credits which typically include green construction practices, and 49% of which are transit-oriented. Transit-oriented development has a positive impact on the environment by reducing dependency on air-polluting vehicles.

In addition to the environmental benefits, the new and preserved affordable homes financed through Notes will serve low-income communities by helping to provide more quality housing options and more jobs. On average, homes financed with the help of Notes will be affordable to households earning approximately 52% of area median income. We anticipate that more than 6,000 full-time equivalent jobs will be created as a result of the funded development work.

In 2020, Century became the first Community Development Financial Institution (“CDFI”) to be rated by both Fitch and S&P, earning ratings of AA Stable and AA- Stable, respectively. Additionally, Sustainalytics, a leading independent ESG and corporate governance research, ratings, and analytics firm, in its June 9, 2020 Second Party Opinion Report, is of the opinion that the Century Housing Corporation Sustainability Bond Framework aligns with the four core components of the International Capital Markets Association’s Sustainability Bond Guidelines 2018. Century partners with InspereX LLC, Member FINRA/SIPC, to distribute the Notes through its sustainable finance platform to a nationwide network of retail and institutional investors in denominations as low as $1,000.

“Century Sustainable Impact Notes give Century the ability to tailor issuance size and maturities in order to seize impact investment opportunities,” said Alan Hoffman, Chief Financial Officer of Century Housing. “By democratizing investment, mission-driven organizations gain more access to financing needed to address social inequalities associated with housing shortages.”

Century Sustainable Impact Notes can be issued at fixed interest rates with maturities that range from 6 months to 20 years. The current prospectus and pricing supplements are available online at century.org/invest.

“We are proud of the role we play in connecting purpose-minded investors with Century’s important work to create stable, sustainable communities,” said InspereX CEO John DesPrez. “The $100 million milestone demonstrates the keen interest of individual investors and institutions to support affordable housing efforts, and we look forward to working with Century toward the next milestone.”


About Century Housing

Century Housing Corporation is a mission-driven Community Development Financial Institution (CDFI) that finances quality, affordable housing throughout California to provide dignified homes, healthy and hopeful futures, and economic independence to the people we serve. From our start as a state agency and through our past 27 years as a private non-profit, Century has invested more than $2 billion to create and preserve over 50,000 homes while creating thousands of construction jobs. Century-financed developments showcase a unique legacy of serving our triple bottom line: positive financial, social, and environmental outcomes supporting a more just and sustainable future in the places where help is needed most. Century Housing is based in Culver City, California.

About InspereX
InspereX, Member FINRA/SIPC, is transforming how fixed income securities and market-linked products are accessed, evaluated, and traded. Home to the pioneering BondNav® platform, InspereX provides financial advisors, institutional investors, issuers, and risk managers deep access to fixed income and market-linked products markets across asset classes, as well as industry-leading origination, distribution, and education. Focused on delivering true price transparency, liquidity, execution targeting price improvement, and the information advantage gained through data aggregation, InspereX inspires greater confidence through the power of technology.

The firm is a leading underwriter and distributor of securities to more than 2,000 broker-dealers, institutions, asset managers, RIAs, and banks. InspereX represents more than 400 issuing entities and has underwritten more than $670 billion in securities. The firm has seven trading desks and more than 200 employees with principal offices in Delray Beach, San Francisco, Chicago, and New York City.

DISCLAIMER:
This is not an offer to sell or a solicitation of an offer to buy any securities. Such an offer is made only by means of a current prospectus (including any applicable pricing supplement) for each of the respective notes. Such offers may be directed only to investors in jurisdictions in which the notes are eligible for sale.  Ratings current as of 7/21/2022. A credit rating is not a recommendation to buy, sell or hold Notes and may be subject to suspension, reduction or withdrawal at any time. Please check the current pricing supplement for credit ratings assigned to notes currently being offered for sale. The sustainability designation and these credit ratings should not be the only factors investors rely on when assessing the merits and risk of this investment. Investors should rely on the terms as presented in the prospectus. Investors may obtain a current prospectus by visiting www.century.org/invest. The notes are subject to risks, including the loss of principal. Investors are urged to review the current prospectus before making any investment decision. The notes will not be insured or guaranteed by the FDIC, SIPC or other governmental agencies. Past performance is no guarantee of future results.

New York Life logo over affordable development

New York Life Commits $50 Million in Long-Term Capital to Century

New York Life logo over affordable development

New York Life, America’s largest and most admired mutual life insurer, announced a commitment of $50 million in long-term capital to Century Housing. Century serves as a vital capital provider in low-income communities across California and is dedicated to delivering responsible and affordable lending to mission-aligned customers. Century has invested more than $2.3 billion in the affordable housing sector, supporting more than 50,000 affordable housing units.

New York Life’s investment involves the purchase of 10-, 15-, and 20-year senior unsecured notes. The funds will be used to offer loans to developers for the acquisition and/or financing of affordable and workforce housing developments and for general corporate purposes.

“At Century, we see homes as the cornerstone of a thriving and just society,” said Alan Hoffman, chief financial officer at Century Housing Corporation. “We finance, build, and operate exceptional affordable housing so that the vulnerable people we serve may have a dignified home, a healthy and hopeful future, and attain economic independence. The long-term capital provided by New York Life will allow us to further our mission by continuing to build communities with proven social impact.”

This is the latest investment by New York Life’s $1 billion impact investment initiative announced in April 2021. The initiative is focused on addressing the racial wealth gap by investing in underserved and undercapitalized communities over the next three years with a focus on supporting small businesses, affordable housing, and community development.

“New York Life’s impact investment initiative will continue to partner with CDFIs like Century, diverse asset managers, and other mission-driven organizations to positively impact the affordable housing sector and beyond,” explained Martin King, managing director and head of impact investments at New York Life. “Our long-term impact investment strategy is to develop large-scale solutions and investment structures that aim to deliver broad and inclusive economic outcomes linked to job growth, health and wellness, and personal and household advancement.”

About Century’s investment offerings

 

Century California Fund Logo

Century Housing Announces The Century California Fund Investment Initiative

Century California Fund Logo

Century Housing announces the Century California Fund (CCF) investment initiative to help close the gap in economic and social disparities in California.

Since its founding, Century has been focused on addressing the lack of diversity, equity, and inclusion in the communities it serves. Consistent with its mission, Century is making a further investment in underserved communities, specifically communities of Black, Indigenous and people of color (BIPOC) who have been disproportionately impacted by lack of access to traditional lending, education, affordable housing, livable wages and small business opportunities.

With an initial seed investment of $8 million in the CCF fund, Century hopes to make a positive impact for underserved communities that typically have inadequate financial wealth to access higher education, or access to financing for business opportunities, affordable housing, or home ownership.

“We believe in closing racial wealth gaps, in access to higher education, living wages, lending and financial opportunities,” said Alan Hoffman, SVP, Century Housing. “The CCF initiative’s emphasis will include education, jobs, small business expansion, and affordable housing,” added Hoffman.

The inaugural theme for the CCF is the Century Educational Opportunity (CEO) grant. CCF’s pilot program is tackling the challenges facing under-resourced communities. We seek to empower students to enroll in vocational or trade school and invest in higher education to become the next generation of leaders, notably in the affordable housing financing and development sectors.

“The CEO grant program is in line with our mission, vision and values of Century, to help people stay housed, healthy, and have new opportunities”, said Ronald Griffith, President and CEO, Century Housing. “In addition, education reduces income inequality and increase intergenerational social mobility”, Mr. Griffith added.

The nine organizations receiving grants include California State University, Fullerton – Project Rebound, Coalition of Rural Housing (CCRH), Coalition for Responsible Community Development (CRCD), El Camino College, Japanese Community Youth Council (JCYC), Larkin Street Youth Services (LSYC), LifeSteps, Los Angeles Community College District (LACCD) and Venice Community Housing (VCH).

“Coalition for Responsible Community Development is proud to be a recipient of the Century California Fund, which will help to support graduates of CRCD Academy, a partnership with Youth Build Charter School of California based in South Los Angeles, to use towards their post-secondary or continued education,” said Mark Wilson, president and CEO, CRCD.

“The California Coalition for Rural Housing is greatly honored to be included in the first cohort of nine Century Housing Fund awardees, statewide.  We will use the funds to provide scholarship assistance to aspiring or current university/college students from farmworker, tribal, and rural communities hard hit by the pandemic, wildfires, and income losses,” said Rob Weiner, President and CEO, CCRH.

Michael Fuller, Executive Director of Foundation for LACC adds, “The Foundation for the Los Angeles Community Colleges is proud to partner with Century California Fund in offering scholarships to LACCD student who will benefit by entering the workforce with good paying jobs that strengthen the social fabric of communities throughout Southern California.”

Century Wins Environmental Finance Municipal Bond of the Year

Century Housing Municipal Bond Awarded Sustainability Bond of the Year

Century Wins Environmental Finance Municipal Bond of the Year

Century Housing’s 2020 Sustainability Bond, which raised $85 million to directly support quality affordable housing throughout California, today received the Sustainability Bond of the Year Award from Environmental Finance in the US muni bond category. These Awards seek to recognize those bonds that excel, innovate in and contribute to the successful development of the market for environmental bonds.

With its June 2020 bond offering, which was twelve times over-subscribed receiving more than $1 billion in orders, Century Housing became the first Community Development Financial Institution (CDFI) to come to market with a municipal bond CUSIP. Century was also the first CDFI to be rated by two leading public credit rating agencies, Fitch and S&P (rated AA and AA-, respectively). The bond carried a second-party opinion by Sustainalytics attesting to both the environmental and social benefits of the housing created and preserved by this bond. Underwritten and marketed by Wells Fargo Securities as sole manager and offered through the California Municipal Finance Authority, the bond was California tax exempt and federally taxable.

Alan Hoffman, Senior Vice President and CFO of Century Housing, said, ”It is heartening to see the overwhelming investor interest in affordable housing, especially at a time when the COVID pandemic exposes how vulnerable our low-income families, seniors, and veterans really are to the lack of safe, secure, quality housing. We are honored that the Environmental Finance Bond Awards’ judges have recognized Century for its ability to innovate and execute with this bond and hope that the award also reflects our commitment to sustainable, energy-efficient affordable housing in a time of tremendous need.”

Century provides financing for all stages in the development of affordable housing including acquisition, bridge, construction and permanent loans. For more than 25 years, Century’s expertise and quick, reliable execution have allowed affordable housing developers to secure the financing they need, including all-important early stage financing, allowing them to take advantage of programs including Low Income Housing Tax Credits and current COVID-related federal aid like Project Homekey.

More about the award at the Environmental Finance site.

Century Launches Note Program To Fund Affordable Housing

 

Image of Anchor Place at Century Villages at Cabrillo

Investors are offered an investment-grade opportunity to support Century’s efforts to address social inequalities associated with housing shortages worsened by the COVID pandemic


Culver City, CA 
(February 1, 2021) — Century Housing, a nonprofit Community Development Financial Institution (CDFI) dedicated to creating quality affordable housing throughout California, today announced the launch of an offering of up to $50 million of Century Sustainable Impact Notes (Notes), giving retail and institutional investors the opportunity to support Century’s efforts to address social inequalities associated with housing shortages worsened by the COVID pandemic, while promoting sustainable development. The Notes have received an investment-grade rating from Fitch and S&P and are available in denominations as small as $1,000.

In June, Century became the first CDFI to be rated by both Fitch and S&P, two of the world’s leading providers of independent credit ratings, earning a rating of AA Stable and AA- Stable, respectively. A second-party opinion by Sustainalytics also confirmed the environmental and social benefits attributed to Century-financed affordable development. All net proceeds will be used to support the financing of affordable housing in underserved communities.

Alan Hoffman, Senior Vice President and CFO of Century Housing, said, “The shortage of housing options for low-income households and the related chronic homelessness are being compounded by the COVID pandemic. A stable home is the first step to recovery, and the benefits produced by affordable housing, including improvements in health, education, and employment, are undeniable.”

Century-financed communities typically provide affordable housing to low-income families, seniors, veterans, and youth and offer on-site services, including health clinics and case management. Of the 4,278 homes Century financed in 2019, 76% had a green component, such as high energy-efficiency standards, sustainably sourced materials, and close proximity to transit in order to limit greenhouse gas emissions caused by long commutes. On average, these apartments are affordable to households earning half the median income in the areas where they live.

Century Sustainable Impact Notes are expected to be available beginning on or about February 1, 2021, with maturities that range from six months to 20 years through Incapital, LLC, a leading underwriter and distributor of securities.

“Century’s Notes offer investors the opportunity to address critical social and environmental needs while earning a financial return,” said Ron Griffith, President and CEO of Century Housing. “We are excited to be working with Incapital to give more investors the ability to increase the supply of critically needed affordable housing and to participate in our mission of serving our most vulnerable community members.”

Century provides financing for all stages of the creation and preservation of affordable housing and specializes in early-stage financing, including acquisition and bridge loans. For more than 25 years, Century’s expertise has reliably allowed affordable housing developers to secure important financing, take advantage of current programs, including COVID-related federal aid like Project Homekey, and navigate other state and city resources necessary for affordable housing communities to thrive.

The offering will be made only pursuant to a prospectus and pricing supplement. Copies of the prospectus and the relevant pricing supplement may be obtained from Century’s website at century.org/invest. In addition, financial professionals may obtain copies of the prospectus and relevant pricing supplement through Incapital’s Legacy™ platform. The S&P and Fitch ratings should not be the only factors investors rely upon in making an investment decision in the Notes. Before you invest, you should carefully read the prospectus and the relevant pricing supplement for more complete information about Century and the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.