Message from the President
Dear Partner in Hope,
Mercy Community Capital (MCC) has set many ambitious goals for itself in recent years and has worked hard to meet or exceed them. We are pleased to report that 2021 was truly a breakout year on all fronts. With the continued macroeconomic uncertainty from Covid, MCC was able to attain excellent business and financial results that showcase our sustainability; however, we are more excited about how these results translated into real impact.
We believe we are called to contribute more than we consume – both as an organization and as individuals. MCC intentionally incurred additional ‘responsible risk’ that contributed greatly to those most in need in 2021. Our financing activities created and/or preserved 3,781 units of affordable housing and served 9,000 residents (more than half were people of color). Nearly 80% of our capital went to those at or below 60% of Area Median Income, and overall, we saved households nearly $20 million through housing with below-market rents. We are all connected, and when we lift up those that are struggling, the collective fabric of our society improves.
Here are additional 2021 highlights for MCC:
Closings. We set the overall record in our history for deals closed and nearly doubled our volume goal for the year! We closed 36 transactions that translated into $1 billion in total development costs. This was a herculean lift for our underwriting staff.
Capital. We set a record for the amount of equity raised in a year, which substantially enhanced our balance sheet. Additionally, we ended the year with a stellar 98% renewal rate for existing investors.
Portfolio Quality. Our portfolio remains strong and healthy with an inconsequential watch list and nearly 0% delinquency/nonaccrual ratios.
Credit Rating. After three credit rating increases in the last several years, we maintained an ‘AA+’ rating based on the traditional Wall Street scale, and that keeps us in the top 17% of rated CDFIs nationally.
We give thanks to our talented staff, thoughtful Board, and committed committees for achieving these outstanding impact and business results. We look forward to building on these results in 2022 with exciting initiatives related to environmental stewardship, a guarantee fund for nascent real estate developers, a complete revamp of our software programs for enhanced efficiencies, and more.
And finally, in the brilliant words of the spiritual teacher Ram Dass: “There are billions of tiny acts that create suffering in the world – acts of ignorance, greed, and violence. But in the same way, each act of caring – all the billion tiny ways that we offer compassion, wisdom, and joy to one another – serves as a preservative and healing agent.”
Here’s to more compassion, wisdom, and joy in 2022 and beyond!
With gratitude for your continued partnership and support,
Mercy Community Capital
MCC Board Chair
Deputy Executive Director, CHFA