Transcript Document

Community Reinvestment Fund, USA
Bringing Scale and Sustainability to Community
Development Finance
Federal Reserve Bank of Boston
November 4, 2005
Presented by:
Frank Altman
President and CEO
Access to Capital Provides
Economic Opportunity
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A national non-profit financial services organization
based in Minneapolis, MN
Provides capital to communities by purchasing
economic development and affordable housing
loans from community development lenders
Helped establish New Markets Tax Credit as a
member of the NMTC Coalition
What is CRF?
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
communities.
CRF’s Mission
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“We talk to the Birkenstocks and to the Wing Tips.”
We Work in Two Distinct Markets
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$457 million provided to 114
lending partners in 25 states,
District of Columbia.
More than 1,600 loans in
39 states.
10,594 total jobs, created/retained,
2,164 of which were provided to
minorities or women.
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8,733 total housing units.
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Loss ratio is less than 0.5%
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Delinquencies currently 0.39%
INVESTORS INCLUDE:
Prudential
MetLife and MetLife Bank
Northwestern Mutual
Axa-Equitable
Domini Social Investments
Calvert Social Investment Fund
CRA Fund Advisors
General Board of Pensions and Health
Benefits of the United Methodist Church
F.B. Heron Foundation
Mennonite Mutual Aid Society Insurance Co.
U.S. Bank
Wells Fargo
Washington Mutual
State Farm Bank
Citibank
MacArthur Foundation
Fannie Mae Foundation
…and many others.
Track Record
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Location of Lending Partners
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Location of Borrowers
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Sustained Investment Yields High Impact
Lake Street Corridor, Minneapolis
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Securitization
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New Markets Tax Credit
Two Strategies for Raising Capital
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80% market-rate
investments
18% social-rate
investments
2% charitable
contributions
How CRF Leverages Funds
$130 million in Rated Debt Securities
 Affordable Housing Debt Offering - $84 million
total offering, S&P ‘AAA’ rating for $63.5 million.
 CRF 17 – First rated economic development debt
offering, $46.1 million total, ($26 million AAA, $7
million A, $6 million BB), 17% subordinated
capital (versus 23% in CRF 16).
New Markets Tax Credits
 $412.5 million New Markets Tax Credit allocation
for Business Loans in Low-Income Communities.
Community Development Finance
Milestones Reached by CRF
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$46.1 million total security
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$26.1 million in Class A Notes
Rated by Standard & Poor’s
Privately Placed
Details on CRF USA’s
Recent Rated Economic
Development Security
Rated Tranches from “AAA” to “BB”
Community
Reinvestment Fund
Sponsor of
National New Markets
Tax Credit Fund Inc.
Sub-allocates to
and Controls
Business Loan
Conduit LLC
Commercial
Lending LLC
Purchases loans from
Purchases loans from
Local CDE
Makes loans to
Qualified
Business
Local CDE
Makes loans to
Qualified
Business
Makes loans to
Qualified
Business
Qualified
Business
Community Reinvestment Fund
Becomes More Complex
•CRF’s ability to grow limited by capital constraint
•Develop a larger market for the unrated, supporting
class of Notes
•Warehousing Capacity is limited but growing
•Become more efficient
•Never lose sight of the MISSION
Challenges
A multi-billion dollar market financed by a mix of life
insurance companies, banks, pension funds and
mutual funds.
Increasing liquidity for investors
Volume sufficient to support trade in the public
markets
Better lives for people and stronger communities
throughout the nation
Our Vision
If you would like more information, please contact us.
Frank Altman
Community Reinvestment Fund
801 Nicollet Mall Suite 1700W
Minneapolis, MN 55402
[email protected]
612-338-3050 phone
612-338-3236 fax
Website: www.crfusa.com
Capital for Communities –
Opportunities for People
Capital for Communities
Opportunities for People
Community Reinvestment Fund, USA