The Reinvestment Fund Governor’s Housing Conference: Strengthening Vibrant Communities October 16, 2012

1. The Reinvestment Fund Governor’s Housing Conference: Strengthening Vibrant Communities October 16, 2012

2. TRF Profile The Reinvestment Fund builds wealth and opportunity for low-wealth people and places through the promotion of socially and environmentally responsible development. Business Lines Lending and Investing • $1.1 billion in cumulative investments and loans throughout the mid-Atlantic • Currently manage $682 millionin capital, with nearly830 investors Policy Solutions TRF Development Partners PolicyMap

3. Capital at the Point of Impact TRF is a national leader in rebuilding America’s distressed towns and cities, through the innovative use of capital and information. We apply these resources towards: • residential and commercial real estate development that reclaim and revitalize neighborhoods • businesses and community facilities that can provide value and opportunity to neighborhood residents

4. CARS • CARS™, the CDFI Assessment and Rating System, is a comprehensive, third-party analysis of community development financial institutions that aids investors and donors in their investment decision-making. • Organizations are rated based on • Impact performance • Policy Plus • Financial Strength and Performance TRF has maintained the top score in all three categories, with an AAA+1 rating (most recent 2012)

5. National data mapping and analysis tool Easy, online access to data and analytical tools in a sophisticated yet user-friendly web platform Over 15,000 data indicators as well as proprietary TRF analytics, with frequent additions. PolicyMap – www.policymap.comAll the data you need. All in one place. All online.

6. Policy Solutions We combine our rigorous data analysis with a distinctive ability to help clients think spatially. • Real Estate Market Analysis • Market Value Analysis • High leverage investment areas • Commercial corridors analysis • Foreclosure analysis and prevention strategies • Program & Social Impact Assessment • Estimating Supermarket Access, School Lunch Analysis, Grantmaker Advisory

7. TRF Development Partners • TRF Development Partners works in neighborhoods across the mid-Atlantic • Has created 279 units of housing and secured over $110 million towards development in the last 5 years alone. • In Baltimore’s Oliver neighborhood, TRF DP’s efforts have resulted in a 25% drop in total vacant homes in the target area. • TRF DP’s housing investments continue to thrive because of three tenets: • Building from strength • Development with an understanding of the existing built environment • Homes that are designed with eye towards quality and high design standards

8. TRF Development Partners • Greenmount West • City Arts Apartments (69 units) • City Arts Lofts (7 units) • City Arts Historic (9 units) • East Baltimore • Preston Place (64 completed, 15 under construction) • Participating with the City’s Vacants-to-Value initiative • Partnership with EBDI for acquisition/rehabs of 33 houses on Broadway

9. TRF Development Partners

10. Preston Place - Rehabs

11. TRF in Baltimore • Serving Baltimore for nearly a decade • Loaned and invested over $50 million in Baltimore • Supported $33 million in direct housing development • Provided policy and planning solutions to a substantial number of local clients including government, foundations and private institutions • Manage capital dedicated for Baltimore from Living Cities and the Annie E. Casey Foundation. • Have raised other philanthropic and bank capital for Maryland lending. • Working to expand our local investor base.

12. TRF Lending • TRF Loans support safe, affordable homes, quality education, neighborhood retail, energy efficiency and generation and access to fresh, healthy food. Orchard Ridge • Loan Products • Predevelopment • Acquisition • Construction (up to 24 months) • Permanent (up to 7/20) • New Market Tax Credits City Neighbors Charter School

13. TRF Lending Underwriting and structuring of loans based on: • Borrower’s financial condition • Development experience • Availability of collateral • Ability to repay Photo by Greg Pease

14. TRF Lending Threshold feasibility: • Adequate cost projections and proposed sources • Demonstration of how proposed rents and sales prices are supported in the market • Capacity of the development team to successfully complete the project. The Green School, Baltimore MD

15. TRF Lending Example Project: Construction Loan for 12 For-Sale Units Total Development Cost: $3.5 million Construction Loan: $650,000 to be taken out by unit sales Balance is NSP funds 24 month term, interest only Rate is floating based on LIBOR Loan Conditions were: Minimum as-completed appraised value to ensure LTV can be maintained. (LTV maximum here was 80%) Approval of development team financials and track record Cost and plans review by third party Subsidy sources are drawn down first Evaluation of for-sale market and asking prices

16. TRF Lending Underwriting Questions/ Risk Mitigation • Are there sufficient funds for a contingency? • Who is the target market and do they have sufficient income to qualify for the purchase? • How much cushion in the sales prices exists? • Timing of the draw down of loan relative to other sources • Is there a “backup plan” if the houses take longer to sell?

17. Contact Information Dana Johnson Baltimore Market Leader 410.783.1110dana.johnson@trfund.com