Transcript No Slide Title

CDFI Membership
In
Federal Home Loan Banks
Jim Ferris, Executive Director
NeighborWorks Capital
February 22, 2010
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Who are we?
 National CDFI
 Lend to over 140 non-profit affiliates of
NeighborWorks® America
 Non-profits create/preserve affordable
for-sale or rental housing or commercial
projects
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What do we do?
 Early stage loans to catalyze community
development projects
 Products - Predevelopment, Interim
Acquisition and Lines of Credit
 Technical assistance to assure project
success
 Bridge CDFI capital to government
programs and banks
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What are our results?
 $27 million in capitalization
 $50 million in loans to 190 non-profit projects
 Leveraged $968 million in construction and
permanent financing (19:1)
 7,000 units of affordable housing and 360,000
square feet of commercial projects (retail, office,
health centers)
 Low 1.4% historical charge-off rate
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Why is my CDFI considering FHLB
membership?
 Aligns with community development mission
 Notable increase in customer demand for shortand mid-term capital to take advantage of
recent federal programs and real estate
development opportunities
 Access to capital has reduced during recession
 Increases ability to serve more borrowers
 Better match of assets and liabilities
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What is the Opportunity?
 Leverage CDFI equity and below-market
financing to serve more customers
 Increase community impacts
 Immediate access to broad array of capital
for short and long-term products
 Expand products to meet communities
expanding needs
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What are the Challenges?
 Collateral requirements are higher than
CDFI’s internal requirements and do not
reflect strong CDFI experience. Will greatly
impact other investor terms.
 As an unregulated entity, FHLB may not
understand CDFI’s strong risk management
and performance
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More about NeighborWorks® Capital
Jim Ferris, Executive Director
240-821-1651 ext 202
[email protected]
www.NeighborWorksCapital.org
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