1. Prudent Investment in Urban Revitalization Belden Hull Daniels, CEO Economic Innovation International, Inc Deborah La Franchi, CEO Strategic Development Solutions Pension Funds & Urban Revitalization Baltimore, MD June 7, 2006

2. 2 Double Bottom Line (DBL) Private Equity Funds 1 st Bottom line: Superior Risk-Adjusted Market Returns 2 nd Bottom Line: Measurable Urban Revitalization  Rapidly growing $6.5 billion industry: “doing well & doing good”  Targets investment in low-income communities  Managed by proven private equity fund managers  Creates superior risk-adjusted market returns for investors  Creates jobs and economic opportunity  Provides flexible, responsive, value-added capital

3. 3 Market Discipline; Accountability  Private-sector discipline is central  Risk-adjusted market rate returns (mid- to high-teens)  Fund Sponsor sets the second bottom line goals  Fund Managers chosen in national competitive process  Fund Sponsor makes Fund Manager selection  Investors must approve Fund Manager  Fund Managers protected by firewall & at risk  Accountability to Fund Sponsor & community stakeholders  Fund Sponsor participates in financial returns

4. 4 Repeat Institutional Investors  Commercial Banks: B of A, Chase, Citibank, Union, USBank, Wachovia, WaMu, Wells and others  Insurance Companies: AAA, Axa, Hancock, Liberty, Mass Mutual, Mercury, Met Life, NY Life, Northwestern, Pacific Life, PMI, Prudential and others  Foundations: California Community; Annie E Casey, Danforth, Ford, Jacobs, Heron, Knight, MacArthur, McCune, McDonnell, Sand Hill and others  Public Pension Funds: CalPERS, CalSTRS, Contra Costa County, Connecticut, Illinois, LACERA, LACERS, MassPRIM, NYCERS, NY Common and others  Union Pension Funds: AFL-CIO Housing & Building Trusts, SEIU and others  University Endowments: Washington University and others  High-Net-Worth Persons: Bay Area, Northwest Louisiana and others

5. 5 Proven Fund Managers  Access Capital  Boston Capital  Canyon/Johnson  Cityscape Capital  Community Preservation Corp.  Equibase Capital Group  Enterprise Community Investment  Fidelity Partners  Hanover Financial  Hunter Chase  Ironwood Equity Fund  Kennedy Wilson  Landmark Equity  MacFarlane Partners  Massachusetts Capital  Pacific Coast Capital Partners  Phoenix Realty  The Reinvestment Fund  Shamrock Holdings  Urban America

6. 6 III. Case Study: Genesis Family of Funds Genesis LA Not-for-Profit 8 staff & Board of Directors Genesis Real Estate Fund I $85 Million Mgr: Shamrock 2000 Genesis Real Estate Fund II $102 Million Mgr: Shamrock 2005 Genesis Workforce Housing Fund I $103 Million Mgr: Phoenix Realty Group 2004 Genesis Growth Fund I $30 Million Mgr: Fulcrum Capital 2003 Genesis NMTC Fund $120 Million Mgr: Genesis LA 2005 Genesis Community Investment Fund $1 Million Mgr: Genesis LA 2000 $450 million capital $1.5 billion deals in LMI areas 100% Self-sufficient not-for-profit Continues to create Funds Works with small – medium sized developers

7. 7 Case Study: Genesis Workforce Housing Fund I Managed by: Phoenix Realty Group  For-Sale Housing: Single Family Detached, Townhouses and Condo  S. California’s Underserved Communities (LMI)  $102 million: Financing for Real Estate Development  Investment of $2 to $20 million  Fund to Provide Institutional Capital to Local Developers  Income of Buyers: 80% - 150% AMI, flexible to 200% AMI  Nurses, Teachers, Firefighters, Police, Office Workers

8. 8 Case Study: Genesis Workforce Housing Fund I Avenue 26 Condominiums City of Los Angeles, Lincoln Heights New construction of old factory site Adjacent to Gold Line Metro station Not-for-profit Developer  165 for-sale residential units  Child care center  Community arts center  Retail/office component Senior affordable and tax-credit units to be built on adjacent site

9. 9 Case Study: Bay Area 2nd Bottom Line Soon: Four funds, $300 million capital, $1 billion in deals First Fund: $66 million Bay Area Smart Growth Fund I First 3 Years: $51 million invested in 10 projects: 100% of projects are smart growth & “Three E” 1121 permanent & construction jobs created & retained 633 units of affordable for-sale homes developed 1.2 million sq. ft. of commercial space developed 1.6 million sq. ft. of affordable housing developed

10. 10 IV. Creating a Maryland Regional Workforce Housing Fund I  $60 - $90 Million Maryland Fund generates $$180-270 Million in deals  100% Smart and Sustainable Growth projects  Preservation and conservation of open and recreational space  Revitalization of downtowns with mixed-income and mixed-use projects  Family housing for firemen, school teachers, policemen, nurses etc.  Transit-oriented development for livable & walkable communities.  Maryland Enterprise Fund Sponsor oversees Fund.  Enterprise Community Investment, Inc. Fund Manager brings track record.  National pool of repeat institutional investors have high interest  Now More Across Country: New England Workforce Housing Fund I