1 George Mensah City of Miami

Mission of the CDFI Fund 2 The mission of the CDFI Fund (the Fund) is to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States.

Main Functions of the CDFI Fund 3 The CDFI Fund directly invests and supports Community Development Financial Institutions (CDFIs), Community Development Entities (CDEs), and other financial institutions through the following programs and initiatives: ○ Certification Programs (CDFI and CDE) ○ CDFI Programs (Financial Assistance (FA) and Technical Assistance (TA)). ○ Bank Enterprise Award (BEA) Program. ○ New Markets Tax Credit (NMTC) Program. ○ Native Initiatives. The CDFI Fund directly invests and supports Community Development Financial Institutions (CDFIs), Community Development Entities (CDEs), and other financial institutions through the following programs and initiatives: ○ Certification Programs (CDFI and CDE) ○ CDFI Programs (Financial Assistance (FA) and Technical Assistance (TA)). ○ Bank Enterprise Award (BEA) Program. ○ New Markets Tax Credit (NMTC) Program. ○ Native Initiatives.

What is a CDFI? 4 Types of Certified CDFIs: - Insured Depository Institutions (banks and thrifts) - Depository Institution Holding Companies - Insured or State-Insured Credit Unions - Loan Funds (non-profit and for-profit) Venture Capital Funds.

Becoming a CDFI 5 A certified CDFI is a for-profit or not-for-profit entity that meets the following requirements: Is a Legally-existing entity; Has a Primary Mission of Community Development; Is predominantly a Financing Entity; Provides Development Services in conjunction with financing; Principally serves a Target Market; Is Accountable to the Target Market; Is a Non-governmental Entity.

What is a CDE? 6 A certified CDE is a for-profit or not-for-profit entity that meets the following requirements:  Is a legal entity;  Has a primary mission of serving or providing investment capital for LICs or Low-Income Persons;  Is accountable to residents of the LICs that it serves.

CDFI Fund Programs 7 Bank Enterprise Award Program –BEA Capital Magnet Fund CDFI Bond Guarantee Program CDFI Program FA Award TA Award Native Initiatives New Markets Tax Credit Program

CDFI programs 8 Financial Assistance Award Uses  Financing Capital  Loan Loss Reserves  Capital Reserves  Operations Max Award: $2 million Financial Assistance Award Uses  Financing Capital  Loan Loss Reserves  Capital Reserves  Operations Max Award: $2 million Technical Assistance Award Uses Personnel (Salary) Personnel (Fringe Benefits) Training Travel Professional Services Materials / Supplies Equipment and Other Capital Expenditures Other Costs Max Award: $125,000

CDFI Awards 9 Reimbursement process should be an addendum to the contract between homeowner and contractor Inspector reviews work done (as a lender) Homeowner approves payment to be made to the contractor Give yourself the ability to make payment directly to contractor without homeowner approval if the work has been completed and homeowner still refuses to approve payment to the contractor

Capital Magnet Fund - CMF 10 Part of the Housing Recovery Act of 2008 that established the Housing Trust Fund Grants to finance affordable housing solutions and community revitalization efforts that benefit low-income people and communities nationwide Eligible organizations: Certified CDFIs and qualified non-profit housing organizations. Maximum amount of award is statutory limited to 15% of the total available funding. For 2016 the maximum amount was $12 million.

CDFI Fund stats # of CDFIs – 991, as of January 2016, Loan funds -524 Credit union-267 Banks or thrifts Depository institution holding companies, 67 Venture capital funds - 14 # of CDFIs – 991, as of January 2016, Loan funds -524 Credit union-267 Banks or thrifts Depository institution holding companies, 67 Venture capital funds

Asset Size of CDFIs 12

Thank You 13