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OUR MEMBER BANKS:

Strength in Numbers: Organizing a Loan Consortium to Support Affordable Housing and Community Investment in Your Community. OUR MEMBER BANKS:. Belonging to Community Lenders…. Benefits: Earn CRA Credit even if deal is not in bank’s footprint

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OUR MEMBER BANKS:

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  1. Strength in Numbers: Organizing a Loan Consortium to Support Affordable Housing and Community Investment in Your Community

  2. OUR MEMBER BANKS:

  3. Belonging to Community Lenders… • Benefits: • Earn CRA Credit even if deal is not in bank’s footprint • Participate in good quality loans and minimize bank’s risk • Member Banks are recognized on all promotional materials • Receive monthly and annual reporting documenting activity • Meets Lending Test, Investment Test, Service Test • Risks: • Interest rate risk • Long term nature of our loans

  4. Creation of the Organization…

  5. The Relationship…

  6. Loan Products…

  7. Loan Process...

  8. Example of a typical project: Development of a 60 unit affordable senior housing project. Cost to construct: $12,000,000.00 Sources of Funds: PennHOMES Financing $1,500,000 Federal HOME Funds $1,200,000 Limited Partner Equity $8,500,000 Permanent Financing CLCDC $800,000 * * Typically the only hard debt. Secured by a 1st lien on the real estate as well as an assignment of rents. Loan is made for a 30 year fixed-rate term.

  9. Member Banks Roles and Responsibilities

  10. Organizational Goals…

  11. What’s happening in Central PA? York Housing Advisory Commission - YHAC Affordable Housing Committee - AHC Community Lenders Task Force

  12. Replication of Community Lenders? Why? • Need for affordable housing • Resources shrinking • LIHTC projects are expiring • Can address gap in financing • Model already established Goal: To serve as a vehicle for community revitalization by financing and investing in housing and related activities designed to address the needs of low to moderate income persons and areas.

  13. Next Steps • Find a Champion – Lead bank to discuss with other banks. • Define the Product- Create term sheets to describe loan products. • Define Projects Parameters- Pre-development? Construction? Housing only? Economic Development too? LITC credits? • Decide on geographic focus area – York County plus Adams? Dauphin? Franklin? • Establish a structure – Who will house this?

  14. Questions? Audrey McMichael, Executive Director Community Lenders 120 East Broad Street, Suite 2 Souderton, PA 18964 (215) 799-1340 AMcMichael@CommunityLendersPA.org www.CommunityLendersPA.org Jane Conover Community Lenders Task Force (717) 848-3773 jconover@yccf.org

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