1. 1 Community Investment Impact System (CIIS) CIIS 8.1 TLR Content February 2011 Community Development Financial Institutions Fund US Department of the Treasury

2. 2 Agenda Introduction to CIIS TLR Instructions Certifying CIIS Reports

3. 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 (2010 Report period = Allocatee’s fiscal year ending in 2010) –CIIS due date is 180 days after report period end

4. 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. 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. 6 TLR Instructions HINT: If you Certified a TLR in a previous report period, begin the FY 2010 TLR by downloading the previous report to the Manual/Online entry or to a current Excel Template.

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

8. 8 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. TLR Instructions: Financial Notes & Projects

9. 9 TLR Instructions – Reading the Instructions Originator Transaction ID “Loan Number” Used to track loan/investment across report periods 1990 FIPS Code 11-digit FIPS code that identifies the correct 1990 census tract. Double border: MANDATORY data point Thick Border: CONDITIONALLY REQUIRED data point Blue background: Data point used for COMPLIANCE Data point instructions in this presentation:

10. 10 N-I: C Originator Transaction ID Report the originator's unique identification for the transaction MANDATORY DATA FIELD Validations: Each Originator Transaction ID may only be used for one transaction per submission year. Organizations MUST use the same Originator Transaction ID for each submission year that a particular transaction is submitted. The Originator Transaction ID may NOT exceed 20 characters in length. Excel Data FormatText TLR Instructions – Reading the Instructions N-I: BH Days Delinquent Report the number of days that a required loan payment is past due at the reporting period end. If a borrower made a partial payment on the due date but still owes any part of the payment, count that payment as past due. CONDITIONALLY REQUIRED IF: Transaction Type = Term Line of Credit OR Other COMPLIANCE Validations:Transaction Type = Term Loan Line of Credit Debt with Equity OR Other Excel Data FormatNumeric Double border: MANDATORY data point Thick Border: CONDITIONALLY REQUIRED data point Blue background: Data point used for COMPLIANCE Data point instructions in the TLR Instructions:

11. 11 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. TLR Instructions - Transaction Identifiers Client ID Project Level Used to track investee across loans/investments & report periods Investor TIN Not related to QEI Investor Originator Transaction ID “Loan Number” Used to track loan/investment across report periods

12. 12 TLR Instructions - Transaction Identifiers (CDE v. QALICB) QLICI Type Project Level Investee TIN Project Level Investment in CDEInvestment in QALICB Advance Purchase Commitment Loan purchase based on an agreement in advance of the origination. (See NMTC regs) YesNo Seller Organization Seller of Advance Purchase

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

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

15. 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. 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. 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. Business Description Open-ended text field Investment in CDEInvestment in QALICB QLICI Type Project Level

18. 18 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 TLR Instructions - Borrower/Investee Profile Date Business Established Entity Structure Minority Owned/Controlled Women Owned/Controlled Low-Income Owned/Controlled

19. 19 For business lending: TLR Instructions - Borrower/Investee Profile Jobs at Time of Loan/Investment Project Level (RE) Include construction jobs / Exclude tenant jobs (Bus) Include jobs in business Exclude other “multiplier jobs” Jobs at Reporting Period End Project Level Updates in Status Section

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

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

22. 22 TLR Instructions - Transaction Status (Disbursements) $150,000 #01 6/15/2000 $50,000 #02 6/30/2005 $100,000 01QEI00000 $50,000 01QEI00000 $20,000 Non-QEI $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. 23 TLR Instructions - Transaction Status (Debt Terms) Transaction Type Debt (Term Loan, LOC, Debt w/Equity)Equity Principal Balance Outstanding Days Delinquent Number of Times 60 Days or More Delinquent Amount Charged Off Number of Times Loan was Restructured Amount Recovered Fair Value at End of Reporting Period

24. 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 – Public Sources Project Level Non-NMTC Funds Subset of Total Project Cost Total Project Cost – Other CDEs, Affiliates & Related Programs Non-NMTC Funds Subset of Total Project Cost Total Project Cost Project Level

25. 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. 26 TLR Instructions - Projected Impacts Real EstateBusiness Purpose Capacity of Community Facility Square Feet of RE – Manufacturing/Office/Retail Affordable/Housing Units – Sale/Rental Total Square Feet of Real Estate Project Level Capacity of Community Facility CIIS will have distinct data points for educational, childcare, healthcare, arts center, and other community facilities.

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

28. 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. 29 TLR Instructions - NMTC Compliance Data Better Rates & Terms: –Respond “Yes” or “No” for each Financial Note: –CIIS requires “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. 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. 31 Additional CIIS information is available at www.cdfifund.gov/what_we_do/ciis.asp www.cdfifund.gov/what_we_do/ciis.asp Contact the CIIS Help Desk at ciishelp@kearneyco.com or (703) 373 -1516 ciishelp@kearneyco.com