Community Investment Impact System (CIIS) CIIS 3.4 Release CDE TLR Content May 2006

1. US Department of the Treasury Community Development Financial Institutions Fund Community Investment Impact System (CIIS) CIIS 3.4 Release CDE TLR Content May 2006

2. Presentation Outline • Introduction to CIIS • TLR Instructions • Certifying CIIS Reports • Useful Information

3. Introduction to CIIS • What is CIIS? • Community Investment Impact System • System for CDEs to report QLICI activity to the Fund • CIIS Reports Due Dates • Annual • Report period = Allocatee’s fiscal year • (2005 Report period = Allocatee’s fiscal year ending in 2005) • CIIS due date is 180 days after report period end • (If Allocatee’s 2005 fiscal year end is 12-31-2005, 2005 reports are due 6-27-2006)

4. Introduction to CIIS • Institution Level Report (ILR) • Institution level data • Required if Allocatee (or Sub) closed one or more QEIs by report period end. • General Data • Organizational Structure / Affiliation • Geographies Financed • FTEs Dedicated to NMTC Program • Financial Position • QLICIs: • QEI Distribution • Loan Purchases • FCOS

5. Introduction to CIIS • Transaction Level Report (TLR) • Transaction level data (Portfolio) • Required if the Allocatee (or Sub) had one or more current QLICIs during report period. • Allocatee is responsible for TLR report. • Report/update entire NMTC portfolio annually. • QLICIs: • Investments in QALICBs • Investments in CDEs • (Report investments in CDEs through to the QALICB) • Data must represent the report period end date.

6. TLR Instructions HINT: If you Certified a TLR in a previous report period, begin the FY 2005 TLR by downloading the previous report to the Manual/Online entry or to a current Excel Template.

7. TLR Instructions: Financial Notes & Projects • Financial Notes • Each TLR transaction represents a single Financial Note. • Loan, line of credit, debt with equity, or equity investment.

8. TLR Instructions: Financial Notes & Projects • Projects • Many Allocatees finance Projects with more than one Financial Note.  • The Fund recognizes Financial Notes as part of a Project if each of the Notes share the same: • Investee (Borrower - indicated by Client ID); • Investee Address; • Project Address(es); and • Total Project Cost. • All Project Level data points must be the same for each Financial Note. • FY 2005: Indicate Projects in ILR Comments Section • FY 2006: System re-structured for Projects

9. TLR Instructions – Reading the Instructions • Data point instructions in this presentation: • Originator Transaction ID • “Loan Number” • Used to track loan/investment across report periods Double border: MANDATORY data point Thick Border: CONDITIONALLY REQUIRED data point Business Description • Open-ended text field Blue background: Data point used for COMPLIANCE

10. TLR Instructions – Reading the Instructions • Data point instructions in the TLR Instructions: Double border: MANDATORY data point Thick Border: CONDITIONALLY REQUIRED data point Blue background: Data point used for COMPLIANCE

11. TLR Instructions - Transaction Identifiers • Assign a unique identifier to each Financial Note: • Assign a unique identifier to distinct investees (clients/borrowers): • Provide the TIN for the Allocatee or Suballocatee that originated/invested in the QLICI. • Originator Transaction ID • “Loan Number” • Used to track loan/investment across report periods • ClientID • Project Level • Used to track investee across loans/investments & report periods • Investor TIN • Not related to QEI Investor

12. TLR Instructions - Transaction Identifiers (CDE v. QALICB) • QLICI Type • Project Level Investment in QALICB Investment in CDE • Advance Purchase Commitment • Loan purchase based on an agreement in advance of the origination. (See NMTC regs) Investee TIN Project Level Yes No • Seller Organization • Seller of Advance Purchase

13. TLR Instructions - Transaction Identifiers (Purpose) Purpose Real Estate – Constr/Perm/Acq w/o Rehab - Commercial Real Estate – Rehab – Commercial Acquisition or Rehabilitation Construction or Permanent Financing Acquis & Rehab Rehab Only Constr Perm Both Take-out or Acquisition Financing Rehabilitation Amount Takeout Acq w/o Rehab

14. TLR Instructions - Transaction Identifiers (Debt Terms) Transaction Type Debt (Term Loan, LOC, Debt w/Equity) Equity Interest Rate Term Interest Type Date First Payment Due Points Guarantee Origination Fees Lien Position Amortization Type Collateral Type Equity-Like Features Collateral Value

15. TLR Instructions - Address • Investee Address • Project Level Project Address(es) • Project Level • User may provide multiple Project Addresses • Business Investments • If investee qualifies as QALICB, re-enter Investee Address as Project Address. • If investee does NOT qualify as QALICB, provide each business location financed. • Real Estate Investments • If site(s) is within single census tract, provide one Project Address to represent investment. • If site(s) are NOT within single census tract, provide one Project Address for each census tract financed.

16. TLR Instructions - Address • Addresses • Must pass Address Verification • Verify that address is “geocodable” • If Address does not pass Address Verification, User may enter FIPS Code • CIIS cannot geocode PO Boxes or Rural Routes • Use CIMS/Mapping to confirm geocoding and compliance with “Service Area” and “Areas of Higher Distress Criteria.”

17. TLR Instructions - Borrower/Investee Profile QALICB Type • Project Level • If QALICB is RE developer, select RE • If QALICB is operating business (non-RE), select Non-RE. • If QALICB is single-purpose entity created by operating business to lease back property to that business, user may select RE or Non-RE. • QLICI Type • Project Level Investment in QALICB Investment in CDE Business Description • Open-ended text field

18. TLR Instructions - Borrower/Investee Profile • Investee Guidance: • If QALICB is RE developer, Investee is the developer. • If QALICB is operating business (non-RE), Investee is the business. • If QALICB is single-purpose entity created by operating business to lease back property to that business, Investee is that business. • Project Level data points Minority Owned/Controlled Date Business Established Women Owned/Controlled Low-Income Owned/Controlled Entity Structure

19. TLR Instructions - Borrower/Investee Profile • For business lending: • Jobs at Time of Loan/Investment • Project Level • If Purpose = Business, include jobs in business • Exclude construction jobs • Exclude tenant jobs • Exclude other “multiplier jobs” • Jobs at Reporting Period End • Project Level • Updates in Status Section

20. TLR Instructions - Transaction Status • Transaction Status section requires an annual update. • Loan Status • Active = “On-the-books” or “Open” • Closed = “Off-the-books,” “Paid in full,” or “Exited” • Sold / Charged Off / Refinanced = “Off-the-books”, but not paid off

21. TLR Instructions - Transaction Status (Disbursements) Original Loan/Investment Amount Disbursement ID Disbursement ID Disbursement Date Disbursement Date Disbursement Amount Disbursement Amount Disbursement Source (QEI#) Disbursement Source (QEI#) Disbursement Source (QEI#) Disbursement Source Amount (not total QEI) Disbursement Source Amount (not total QEI) Disbursement Source Amount (not total QEI)

22. TLR Instructions - Transaction Status (Disbursements) $150,000 #01 #02 6/15/2005 6/30/2005 $50,000 $100,000 01QEI00000 01QEI00000 Non-QEI $50,000 $20,000 $80,000 • Total Amount Disbursed cannot exceed Original Amount (except Line of Credit) • Total Amount Disbursed must be “explained” by QEI Source or “Non-QEI”

23. TLR Instructions - Transaction Status (Debt Terms) Transaction Type Debt (Term Loan, LOC, Debt w/Equity) Equity Fair Value at End of Reporting Period Number of Times 60+ Days Past Due Principal Balance Outstanding Number of Times Loan was Restructured Amount Recovered Amount Charged Off Days Delinquent

24. TLR Instructions - Impact Profile (Total Project Cost) • Total funding for “Project” financed by QLICI. • If there are multiple Financial Notes for a single project, enter the Total Project Cost each Note. • Do NOT divide Total across Notes. • Total Project Cost • Project Level • Total Project Cost – Public Sources • Project Level • Non-NMTC Funds • Subset of Total Project Cost • Total Project Cost – Affiliates & Related Programs • *CIIS FY 2006* • Non-NMTC Funds • Subset of Total Project Cost

25. TLR Instructions - Projected Impacts • All projected impacts are collected at the Project Level. • If there are multiple Financial Notes for a single project, enter the full impact amount for each Note. • Do NOT divide impacts across Notes. • Other Impacts (Description, #) • Project Level • Add your own impacts • If user provides Description, must provide #

26. TLR Instructions - Projected Impacts Purpose Real Estate Business Project Level Capacity of Community Facility • Capacity of Community Facility in CIIS FY 2006 • CIIS will have distinct data points for educational, childcare, healthcare, arts center, and other community facilities. Square Feet of RE – Manufacturing/Office/Retail Total Square Feet of RE in CIIS FY 2006 Affordable/Housing Units – Sale/Rental

27. TLR Instructions - Projected Impacts Purpose Real Estate Business • Projected Jobs to be Created • Project Level • (Purpose = RE) Include construction jobs / Exclude tenant jobs • (Purpose = Bus) Include jobs in business • Exclude other “multiplier jobs” • Projected Jobs to be Created • *CIIS FY 2006* • CIIS will have distinct data points for Business Jobs, Construction Jobs, and Tenant Jobs.

28. TLR Instructions - NMTC Compliance Data • Data points used to measure the Allocatee’s compliance with their Allocation Agreement: • NMTC Eligibility • Project Level • Geographic (Census 1990 or 2000) • Target Area (Fund approval) • Target Population • Low Population or High Migration Tracts • Related Entity • Project Level • QLICI Level • Original or Reinvestment

29. TLR Instructions - NMTC Compliance Data • Better Rates & Terms: • Respond “Yes” or “No” for each Financial Note: • In *FY 2006 Report*, CIIS will require “Comparable” rates and terms for each of the “Better Rates & Terms” selected by the user. • For example, if the user enters “Yes” to “Below Market Interest Rate,” CIIS will require the user to provide the “Market Interest Rate.” • Areas of Higher Distress: • Respond “Yes” or “No” for each Project.

30. Certifying CIIS Reports • CIIS has a single Certification for the ILR and TLR. • Organizations may only Certify one time per Report Period. • Users may Certify TLR when: • ILR is complete. • TLR – There are one or more Pre-Certified Transactions. • TLR – There are no Transactions in the Pending List. • How to Certify: Select “Certify” from CIIS home page

31. Certifying CIIS Reports • CIIS has a single Certification for the ILR and TLR. • Organizations may only Certify one time per Report Period. • Users may Certify TLR when: • ILR is complete. • TLR – There are one or more Pre-Certified Transactions. • TLR – There are no Transactions in the Pending List. • How to Certify: Select “Certify” from CIIS home page

32. Useful information • Additional CIIS information is available at www.cdfifund.gov/what_we_do/ciis.asp • Contact the CIIS Help Desk at ciishelp@kearneyco.com or (703) 373 -1516