Tens of millions invested in California’s underserved communities brings jobs, housing and neighborhood revitalization
News: 2015 Press Release
SACRAMENTO, Calif. - Insurance Commissioner Dave Jones hosted the California Organized Investment Network (COIN) Summit today where he emphasized the importance of increasing insurance company investments in California communities, particularly in low income communities where insurer investments through the Department of Insurance's COIN program can help create more jobs, affordable housing, community centers, schools, health clinics and otherwise help to revitalize neighborhoods and communities.
Jones commended two insurers, the CSAA Insurance Group and MetLife Insurance Company, for their combined $15.3 million in community investments through the Department of Insurance's COIN tax credit program in the first half of 2015. Jones also announced a total of $24.5 million in community investments in 14 projects statewide. These investments were made through the department's COIN tax credit program in the first half of 2015.
"The department's tax credit program encourages insurance company investment in our communities, which helps create more jobs, more affordable housing and funds other projects that improves the quality of life in communities and neighborhoods throughout the state," said Insurance Commissioner Dave Jones. "We need more insurers to follow the lead of CSAA and MetLife in investing in California communities through the COIN tax credit program."
The COIN summit brought together over 150 insurance, community and financial leaders from across the country to discuss the benefits of tax credit investments, insurer evaluation of COIN investments, performance of investments through the COIN program and the opportunity to partner insurers with investment opportunities in environmental programs and underserved communities.
Since the inception of the COIN Community Development Financial Institution (CDFI) Tax Credit Program in 1997, more than $239 million has been invested into COIN Certified CDFIs throughout California. Investments made through the program include green energy, affordable housing, clean water, healthy foods, and education projects. CDFIs use investment dollars to provide much needed capital to low-income and rural communities. The $4.3 million in tax credits awarded today, which yielded more than $24 million in community investments, are a result of the first cycle of the 2015 CDFI Tax Credit Program. There remains $9.3 million in tax credits available to be awarded for 2015 to support $46.5 million of private investments. The second tax credit application cycle for 2015 is scheduled to run from August 3 through October 2.
Details regarding the projects:
CSAA Insurance Group
- Invested $4.8 million ($960,000 tax credit) into Enterprise Community Investment which will be used to rehabilitate 96 affordable rental housing developments in Morgan Hill, creating 16 permanent and 132 temporary jobs for California workers.
- Provided a $3 million loan at zero percent interest ($600,000 tax credit) to Nehemiah Community Reinvestment Fund. This investment will be used to purchase, renovate and sell single-family homes to low income buyers in 10 counties through Nehemiah's Neighborhood Restoration Program.
- A total of 1,029 temporary jobs are expected to be created over its five-year term.
MetLife Insurance Company
- Invested $7.5 million ($1.5 million tax credit) into the Enterprise Community Loan Fund.
- This investment will be used to refinance the acquisition of an affordable rental housing property located in San Francisco, to acquire and develop 100 units of affordable housing in the Korea Town area of Los Angeles, and to finance Rocketship 5, an educational facility in San Jose.
- Collectively, these projects will create 45 permanent and 743 temporary jobs in the first three years.
There were total of 14 projects funded through the COIN program investments (including the three projects above):
- Enterprise Community Loan Fund with a $7.5 million investment from MetLife to provide affordable rental housing for low to moderate income individuals in Los Angeles and the Bay Area.
- Enterprise Community Investment with a $4.8 million investment from CSAA Insurance Group to rehabilitate affordable rental housing for low to moderate income individuals in Los Angeles.
- Nehemiah Community Reinvestment Fund with a $3 million investment from CSAA Insurance Group to provide affordable housing loans to low to moderate income families across 10 California counties.
- Clearinghouse Community Development Financial Institution with four investments totaling $1.65 million leveraged to provide affordable housing loans, small business loans and fund community development projects across California.
- NeighborWorks Sacramento with two investments totaling $1.5million to provide home loans for low to moderate income families in the Sacramento area.
- San Luis Obispo County Trust Fund with two investments totaling $1.5 million as part of a revolving loan fund to provide home loans for low to moderate income families in the San Luis Obispo area.
- Fresno Community Development Financial Institution with $1 million to provide small business loans for low to moderate income individuals in 12 California counties.
- Self Help Credit Union with seven investments from private investors totaling $645,000 to provide loans to low to moderate income individuals in California.
- 3Core with two investments totaling $600,000 leveraged to fund affordable rental housing for low to moderate income individuals in Northern California.
- Housing Trust Santa Barbara County with a $500,000 investment to fund home loans for low to moderate income individuals in Santa Barbara County.
- Pacific Coast Regional Small Business Development Corporation with a $500,000 investment for low to moderate income individuals in the greater Los Angeles area.
- Rural California Assistance Corporation with a $500,000 investment leveraged to finance affordable housing projects, small business loans and community development projects in rural California communities.
- Women's Economic Ventures with three investments totaling $450,000 used to finance small business loans to low to moderate income individuals in the Santa Barbara Area.
- Local Initiatives Support Corporation with a $300,000 investment leveraged to finance affordable housing projects, small business loans and community development projects across California.
- COIN is an initiative to provide leadership in increasing insurance industry investment in underserved and rural communities throughout California. COIN sources and structures community development investments for insurers that yield competitive financial returns for companies while at the same time, providing numerous social and environmental benefits for Californians.
- Visit the CDFI Tax Credit Program website to learn more and apply.
- Photos from today's event is available for viewing on CDI's Flickr page.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.