Community Reinvestment Fund, USA

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					SRI Basics: Making Money and Making a Difference

                            Community Investing




                                   Presented by:
                Frank Altman, President and CEO




 Community Reinvestment Fund, USA
                                      1%     5%




                                                   22%

                                                           Community Investing
                                                           Screening and Shareholder Advocacy
                                                           Shareholder Advocacy
                                                           Social Screening Only


                72%




SOURCE: Social Investment Forum Foundation




                                             Socially Responsible Investing
                                             in the US - $2.7 trillion in 2007
   Capital from investors and lenders that is directed to communities that
    are underserved by traditional financial services.

   Community investing makes it possible for local organizations to
    provide financial services to low-income individuals, and to supply
    capital for small businesses and vital community services, such as
    affordable housing, child care, and healthcare.

   In addition to supplying badly needed capital in underserved
    neighborhoods, community investment institutions provide important
    services, such as education, mentoring, and technical support.




                               What is Community Investing?
Community investing measured in this report has grown
       more than 540% in the past decade.




               The Growth of Community Investing
   Community Development Banks (CDBs)


   Community Development Credit Unions (CDCUs)


   Community Development Loan Funds (CDLFs)


   Community Development Venture Capital Funds (CDVCs)




                            The Four Primary Community
                                       Investing Options
                                      5%


                    18%



                                                         Banks
                                                         Credit Unions
                                                53%      Loan Funds
                                                         Venture Capital



                   24%




SOURCE: Social Investment Forum Foundation




                                 Community Investment Institution
                                                 Sectors - 2007
Common Areas that Community Investment Institutions Support:

 Affordable Housing
 Small Businesses and Micro-Enterprises

 Community Services

 Creation of Livable Wage Jobs

 Training Opportunities, Financial Education

 Businesses that Support Environmentally Beneficial Products and Services




                     The Impact of Community Investing
Strategy: To have social investors shift 1% or more
of their investment dollars into community
investing.

Goal: $30 billion in community investments in 2010




              1% or More in Community Campaign
   Certificate of Deposit Account Registry Service (CDARS)
   CDFI Fund
   Community Development Financial Institutions Assessment
    and Rating System (CARS)
   CDFI Data Project
   Community Investment Pools
   Trade Associations
   Institutional Brokerage Firms and Community




                                         Industry Development
   Community Development Corporations (CDCs)
   Community Development Entities (CDEs)
   Community Development Municipal Bonds (CDMBs)
   The Community Reinvestment Act (CRA)
   Economically Targeted Investments (ETIs)
   Low-Income Housing Tax Credits (LIHTC)
   Program-Related Investments (PRIs)
   Targeted Mortgage-Backed Securities (MBS) and Collateralized Mortgage
    Obligations (CMO)


                                Complementary Activities In
                                     Community Investing
Eusebio Morel used a loan from the Capital District Community Loan Fund to
open Fabio’s Grocery in Schenectady, New York. The store not only supports
Fabio’s family, but is a source of neighborhood pride and an important resource
for the growing Latino community.




                                                      Small Business
Urban Edge is a nonprofit that has been working to make the Jackson Square
neighborhood of Boston an accessible mixed-use development with community
facilities that will attract people of all ages. Boston Community Capital made its
first loan to Urban Edge in 1986 and has since supported projects ranging from
affordable housing to a pilot high school for at-risk students to community parks.




                                              Community Facilities
“Sakbayon” is the Tagalog word for “Community,” Opportunity International’s
loan program for nearly 2,000 tricycle taxi drivers in the Philippines. The
borrowers’ net average of $6 a day provides enough money to support their
families, maintain their vehicles, and repay their loans. While they are too poor
to obtain credit from banks, basic business skill training and peer support keeps
the loan repayment for the drivers at 99 percent.




                                                            International
To transform the
community development
finance system
by accessing capital
markets on behalf of local
development lenders
to enable them to
increase their impact on
the lives of people and
their communities



                             CRF’s Mission
   More than $1 billion provided
   2,273 loans in 46 states and D.C.
   41,000 total jobs created/retained,
    4,500 of those to minorities or women
   550 minority and women-owned
    businesses supported
   16,500 affordable housing units
   2,500 childcare slots
   6,000 slots at educational facilities
   106,000 served at community
    facilities




                            Investing in Communities across the
                                                  United States
       CRF Loans (Red)
Lending Partners (Yellow)
Purely Charitable                                                                                                                       Purely Market
                                                                                               Market Rate Investments

                                Below-Market Investments




                                                                                                                                           Private Equity
                                                                                                        Fixed Income



                                                                                                                       Public Equity
                                                                                              Cash
                                   Subordinated
                       Equity



                                      Loans

                                                  Senior
                                                  Loans
        Grants




                                                               Cash
                                                                                          NMTC Investments
                                                                                                And                                       NMTC
         Grants                Equity                 Program-Related                                                                  Investments
                             Equivalent                                                     Asset-Back
                                                        Investments
                            Investments                                                      Securities

Adapted with permission from F.B. Heron Foundation’s “New Frontiers in Mission-Related Investing”




                                                                                            Investment Products
   Institutions

   Foundations

   Religious Institutions

   Individuals

   Banks




                             Types of Social Investors
Purely Charitable                   Purely Market



      PRIs and Social
                          Market-Rate           2% charitable contributions
     Investments 18%
                        Investments 80%
                                                18% social-rate investments
  Charitable                                    80% market-rate investments
Contributions 2%




                                     How CRF Leverages Funds
RECENT TRENDS
              $250,000,000.00


              $200,000,000.00
Loan Volume


              $150,000,000.00


              $100,000,000.00


               $50,000,000.00


                        $0.00
                                2004   2005   2006    2007     2008   2009   2010

                                                 Fiscal Year



                                         CRF Loan Purchase Volume
   Pricing/Spreads
   Significant credit quality concerns
   Lack of market for all but AAA rated notes
   Lack of interest in blind pools, multi-investor
    deals, small business development
   Tighter credit box
   Investors on the sidelines



                  How Current Credit Crisis Affects
                 Securitization and NMTC Facilities
Source: Federal Reserve Bank of Atlanta




                                          AAA-rated Commercial MBS Yield
                                                      Spreads to Treasury
THE WAY FORWARD
   Focus on innovation and new product development,
    including Green Building.
   Heightened efforts to obtain sufficient federal support to
    bridge the gap until markets reopen. (CDFI Certification)
   Work with trusted partners to create targeted pools that fulfill
    a specific investor need.
   Expand contract loan servicing platform.




                                       Current CRF Strategy
For additional information contact:

          Frank Altman
       President and CEO
Community Reinvestment Fund, USA
  801 Nicollet Mall, Suite 1700W
     Minneapolis, MN 55402
       frank@crfusa.com
      612-338-3050 phone

     Or visit www.crfusa.com




                                      Thank You