Meeting the Moment: Takeaways from the OFN Conference
Last month, members of the NHT Lending team traveled to New Orleans for the 42nd annual Opportunity Finance Network (OFN) Conference. We arrived with a question that has been top of mind for months: how can our industry meet this moment?
Our borrowers are facing rising costs, challenging markets, and uncertain funding. As a CDFI, our job is to offer the right tool at the right time. CDFIs exist to deliver flexible capital to under-resourced communities when they need it most. That means adapting, finding new resources, and staying flexible for the borrowers who count on us. Sharing strategies and stories with CDFI partners from across the country reminded us that we are not navigating these challenges alone.
Three topics were top of mind for us at the conference: New Markets Tax Credits (NMTCs) for homeownership, AI adoption, and supporting developers. These are some of the topics that show how the industry is innovating, adapting, and stretching to meet the moment. We had already been thinking about each of them, and it was energizing to learn from peers and sharpen our ideas.
New Markets Tax Credits for Homeownership
As a certified Community Development Entity (CDE), we have participated in two source loans for homeownership using NMTCs. In these projects, the full cost of the homes would be more than the buyers could otherwise afford, but NMTCs covers the difference and makes homeownership possible. The source loan goes to the developer of a NMTCs deal directly to make the transaction possible. We are excited to build on this work as a complement to our existing homeownership efforts, including our initiatives with Amazon and the Robert Wood Johnson Foundation (RWJF).
AI Adoption
Our team is exploring how to use AI tools without losing the human nuance at the heart of our work. To be clear, AI will not take over our underwriting. But there may be smarter ways to use these tools for internal processes, freeing up time and space for our team to focus on the relationships and judgment that only people can provide. We learned from partners who have incorporated tools into their applications and asset management.
Supporting Developers
Capital alone doesn't get a project across the finish line. Many of our borrowers, especially emerging and smaller developers, also need connections, technical expertise, and practical resources to navigate complex deals. We work with borrowers, sometimes for months, to help with proforma development, connecting them with partners, and more, before underwriting even begins. We're continuing to explore how we can offer that support so more borrowers succeed and more projects come to fruition in the communities that need them most.
We left New Orleans with new ideas, renewed connections, and a clearer sense of how we can meet this moment. We look forward to putting these lessons into practice and continuing the conversation with our partners in the year ahead.