Delaware Community Investment Fund

Committee of 100 Economic RoundtableJune 26, 2015

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Delaware Community Investment Corporation/Great Lakes Capital Fund – History and Performance

DCIC was formed in 1994 as a community development corporation and has collaborated with banks, developers and public entities to create or preserve over 5,000 units of affordable housing through its loan and investment programs.

DCIC has also provided short and long-term financing for commercial real estate projects and community facilities. Over the past 20 years, DCIC has invested nearly $400 million into communities throughout Delaware and the Mid-Atlantic region.

In 2014, DCIC merged with Great Lakes Capital Fund, a like-minded Community Development Financial Institution to bring additional capabilities to Delaware’s community development industry.

Over its 20-year history, Great Lakes Capital Fund has provided over $2.95 billion of equity investments & permanent loans, support for over 635 developments/39,000 units and managed over $360 million of New Markets Tax Credits in economic development projects.

INTRODUCTION

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NeedsMany Delaware neighborhoods exhibit severely distressed conditions:• High vacancy rates

• Blighted properties

• Low homeownership rates

• Lack of community and commercial facilities

• Lack of green space

• High crime rates

Opportunities• Revitalization successes, particularly in Wilmington,

provide a base of strength from which to grow.

• Funders, developers, government officials and private citizens share deep frustration with the lack of progress – and are motivated to act.

• Significant, new public and private resources are available, but not coordinated.

• Comprehensive municipal planning efforts have detailed needs and strategies, but implementations efforts have lagged significantly.

Delaware Market Needs and Opportunities

MARKET CONDITIONS

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… But it is very difficult for sponsors, particularly community-based sponsors, to pull together all of the resources needed to realize their vision/goals. This makes locally-driven community development activities extremely challenging in a time when neighborhood revitalization is a major need and priority.

MARKET CONDITIONS

Downtown Development District Grants Strong Neighborhoods Housing Fund Delaware Economic Development Office – Neighborhood Building Blocks Lenders – Loans and Grants Financial Intermediaries Foundations Municipal Incentives for Downtown Development Districts

Significant Private, State and Municipal Incentives Are Available

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Funders

Delaware Community Investment Fund

Community Developers

Targeted Neighborhoods and Redevelopment Areas

Proposed Community Development Funding Structure

FUND OBJECTIVES

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FUND PURPOSEFoster new community development activity and provide flexible financing to reduce blight and

support homeownership, including community facilities and commercial activity in targeted redevelopment areas which will strengthen neighborhoods.

Eligible Uses

Predevelopment Acquisition Demolition Construction (if banks

cannot provide) Bridge Mezzanine Mini Perm

Eligible Projects

Residential Mixed Use Community Facilities

Eligible Borrowers

Non-profit entities For-profit

companies Municipalities

Delaware Community Investment Fund

FUND OBJECTIVES

7I. EXECUIVE SUMMARY

FUND OBJECTIVES

BENEFITS TO FUNDERS BENEFITS TO SPONSORS BENEFITS TO COMMUNITIES

Incremental lending opportunities

Diversified investments reduce risk

CRA credit

Coordination of resources leads to maximum impact, and makes new community development activity more feasible

Significant reduction in project review/staff time

Expedient access to capital

Competitively priced capital

Simplification of funding process

Access to flexible capital that can address multiple needs

Predictable funding sources and qualification criteria

Catalytic projects that spur additional development

Job creation

Tax revenue boost

Reduced vacancy and blight

Improved housing conditions

Improved commercial and community facilities

FUND OBJECTIVES

II. BUSINESS STRATEGY

SAMPLE INVESTMENT TRANSACTION

DELAWARE COMMUNITY INVESTMENT

FUND

TOP LOSS – GOVERNMENT

SOURCES

CDFI FUNDING

FOUNDATION SUPPORT

PRIVATE SECTOR INVESTMENT

Delaware Community Investment Fund Sources

FUND CHARACTERISTICS

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