/03-04Low%20res%20of%20book_1

CHICAGO COMMUNITY LOAN FUND 29 East Madison Street, Suite 1700 Chicago, Illinois 60602-4115 Tel 312.252.0440 Fax 312.252.0419 info@cclfchicago.org www.cclfchicago.org

PRINTING PROVIDED BY

Nonprofit Org. Postage

PAID Permit No. 6510 Chicago, IL

Chicago Community Loan Fund 2003/04 Annual Report

capital

partners

customers

portfolio

STRENGTH IN NUMBERS

GREATER THAN THE SUM OF ITS PARTS: CCLF’S STRENGTH STEMS FROM THE COMBINATION OF ITS CUSTOMERS’ ENERGY, A DIVERSIFIED PORTFOLIO, STRATEGIC PARTNERSHIPS AND MORE LOAN CAPITAL THAN EVER.

CCLF Capitalization Growth 1991–2004 YTD

$12,000,000

10,697,151 10,433,654 10,441,671

$10,000,000

9,911,686

9,846,599 9,774,205 8,654,976 $8,000,000

8,139,692

$6,000,000 5,885,067 5,465,610 4,584,148 4,105,271

$4,000,000 3,694,462

4,302,610 3,859,810

3,552,644 2,721,033 2,573,644

2,784,573

2,736,769

3,057,719

$2,000,000 1,715,328 1,330,897 295,597 50,782 1991

1,675,742

1,695,997

1,300,116

817,765

441,294

699,458

787,425 144,050

1992

359,392

272,708 1993 1994

434,381 1995

450,291 1996

483,291 1997

567,958 1998

594,458 1999

2000

2001

Total Capital Lending Capital Lending Equity

2

2002

2003

2004 YTD

CCLF | STRENGTH IN NUMBERS STATEMENT OF FINANCIAL POSITION December 31, 2003

ASSETS Current assets Cash and cash equivalents Certificates of deposit Investments Interest receivable Grants and other receivables Notes receivable, net of allowance Prepaids Total current assets Long-term assets Interfund transactions Notes receivable, net of allowance of $182,137 Office equipment, net of accumulated depreciation of $21,818 Leasehold improvements, net of accumulated amortization of $18,098 Deposit Total long-term assets

GENERAL

TECHNICAL ASSISTANCE

$ 424,400 101,000 85,292 8,735 7,025 626,452

-

(58,622) -

(9,748) -

TOTAL

$ 424,400 101,000 85,292 8,735 7,025 626,452

(68,370) -

LENDING CAPITAL

TOTAL ALL FUNDS

$ (150,026) 3,368,861 5,000 2,383,626 5,607,461

$ 274,374 101,000 3,368,861 85,292 13,735 2,383,626 7,025 6,233,913

68,370 4,098,374

4,098,374

27,075

-

27,075

72,394 1,898 42,745

(9,748)

72,394 1,898 32,997

4,166,744

72,394 1,898 4,199,741

Total assets

$669,197

(9,748)

659,449

9,774,205

10,433,654

LIABILITIES AND NET ASSETS Current liabilities Accounts payable and accrued expenses Accrued payroll Senior loans payable, net Note payable Total current liabilities

$ 29,259 8,017 8,042 45,318

-

$ 29,259 8,017 8,042 45,318

1,034,636 1,034,636

$ 29,259 8,017 1,034,636 8,042 1,079,954

Long-term liabilities Senior loans payable Subordinated loans payable Note payable Total long-term liabilities Total liabilities

66,174 66,174 111,492

-

66,174 66,174 111,492

4,123,300 1,879,500 6,002,800 7,037,436

4,123,300 1,879,500 66,174 6,068,974 7,148,928

Net assets Unrestricted Undesignated Board designated Total unrestricted net assets

299,428 250,542 549,970

(9,748) (9,748)

289,680 250,542 540,222

1,311,151 1,311,151

289,680 1,561,693 1,851,373

7,735 557,705 $ 669,197

(9,748) $ (9,748)

7,735 547,957 $ 659,449

1,425,618 2,736,769 $ 9,774,205

7,735 1,425,618 3,284,726 $ 10,433,654

Temporarily restricted Permanently restricted Total net assets TOTAL LIABILITIES AND NET ASSETS

-

27,075

19

WRITER/EDITOR Cat Dean RESEARCHERS Sarah Berke, Lina Ngo PHOTOGRAPHERS Mark Tomaras, Steven Karl Meltzer GRAPHIC DESIGNER Patt Kelly PROOFREADER Charlotte Koelling PRINTING The Northern Trust Company

OPERATING

STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS December 31, 2003

2003 LENDING CAPITAL

OPERATING LENDING OPERATIONS Unrestricted

Temporarily Restricted

TECHNICAL ASSISTANCE Unrestricted

TOTAL

Temporarily OPERATING Restricted

TOTAL ALL FUNDS Unrestricted

Permanently Restricted

$ 5,000

$ 10,952

Revenue and support Grants and contributions

$ 252,537

$ 735

-

$ 20,000

-

-

-

123,200

-

-

448,751

-

-

20,572

-

-

122,595

-

-

-

-

-

3,470

-

Donated services

123,200

Notes-receivable interest income

448,751

-

20,572

-

122,595

-

-

Loan closing fees Investment income Unrealized/realized gain on investments Other

7,347

$ 273,272

10,817

-

$ 289,224

-

123,200

-

-

448,751

-

-

20,572

-

122,595

16,631 -

16,631 -

10,817

Net assets released from restrictions – satisfaction of program restrictions Total revenue and support

42,000

(42,000)

33,382

(33,382)

-

1,017,002

(41,265)

36,852

(13,382)

999,207

21,631

-

42,180

10,952

1,031,790

Expenses Program

680,845

-

46,600

-

727,445

-

769,625

Administrative

187,058

-

-

-

187,058

-

-

187,058

45,485

-

-

-

45,485

-

-

45,485

Total expenses

913,388

-

46,600

-

959,988

42,180

-

1,002,168

Change in net assets

103,614

(41,265)

(9,748)

(13,382)

39,219

(20,549)

10,952

29,622

446,356

49,000

-

13,382

508,738

1,331,700

1,414,666

3,255,104

$549,970

$ 7,735

$ (9,748)

-

$ 547,957

$1,311,151

$ 1,425,618

$ 3,284,726

Fundraising

Net assets, beginning of year, as restated

NET ASSETS, END OF YEAR

CCLF’s 2003 financial statements were audited by Desmond & Ahern, Ltd. A copy of that audit is available upon request.

18

CCLF | STRENGTH IN NUMBERS

DEAR FRIENDS: Over the last year, economists and forecasters continued to maintain that the national economy is “in recovery.” Recently released U.S. Census figures for 2003, however, paint a much more sobering picture of how low-income people and communities are faring. In 2003, the number of Americans living in poverty rose by 1.3 million, having increased for the third straight year.

More people in poverty means more people need affordable housing, access to social services, and economic opportunities. Nonprofit organizations that provide those opportunities are “feeling the squeeze.” Indeed, the struggling national, regional and local economies continue to put pressure on nonprofit organizations of all sizes and stripes, including community development financial institutions (CDFIs).

Against the backdrop of a mixed economic climate and a significant lending milestone for CCLF—our 100th loan—we are taking stock. Over the last year CCLF worked to increase its strength and sustainability. We shored up our capital base and strategic partnerships, along with implementing a host of internal improvements. All with an eye toward serving our customers better and so that the Chicago region’s grassroots community developers can count on this mission-driven lender for years to come!

In this report, STRENGTH IN NUMBERS, you will discover that CCLF’s strength stems from a combination of factors: strategic partnerships, a balanced and diversified portfolio, a robust and growing capital base, and most importantly CCLF’s visionary and tenacious customers.

CCLF thrives on the energy and sheer determination of its customers (and partners). They inspire us to move more capital and technical assistance into a diverse array of projects and communities across the Chicago metropolitan area, especially those “hardest-hit” (and now gradually recovering) neighborhoods such as Englewood, North Lawndale and Woodlawn.

As you will see from this report, the verdict is in: CCLF is strong and is here to stay. We thank our customers, investors, funders and strategic partners for helping us to revitalize communities across Chicagoland—as we look forward to making our next 100 loans!

Sincerely,

Calvin L. Holmes, Executive Director

3

001. CUSTOMERS

Just the right blend of iron, carbon and limestone makes steel stronger, more flexible and more durable than any of its ingredients. Similarly, CCLF and its customers combine and complement each other’s strengths, resulting in successful projects that revitalize low- and moderate-income neighborhoods throughout metropolitan Chicago.

Granted, when they come to us, our typical customers are often small or emerging, neighborhood- or faith-based groups that are just beginning the process of building technical acumen, fiscal capacity and/or a development track record. So CCLF lends them its strengths: a supportive and flexible approach to underwriting, copious technical assistance and patient,“acrobatic” loan capital.

However, we do not underestimate the value of our customers’ strengths: passion, commitment and tenacity; a deep and heartfelt community connection; and innovative, grassroots ideas for improving the lives of their neighbors. Indeed, CCLF customers have tackled some of the most difficult-to-redevelop housing, facility and commercial real estate properties in their communities.

Often our borrowers cannot obtain financing elsewhere (even from other CDFIs) but are visionary, energetic, dedicated and hard-working. CCLF factors these intangibles into its underwriting process; we understand the intrinsic value they bring to the future success of projects. In fact, CCLF dollars commonly are the first committed to a real estate development or are used to fill a last-minute funding gap, enabling projects to move forward. Together, CCLF and its customers combine and bolster each other’s strengths, producing tangible results in their communities.

Breaking Ground: Jeff Dennis was a man on a mission. He knew he could build large, extremely affordable, new four-bedroom homes in North Lawndale—and do it fast. To prove it, he built the model home in four months flat and purchased it for his own family. Breaking Ground procured pro bono architecture services, convinced the City to donate the land as well as provide additional homebuyer subsidies, and employed young men in a job-training program to assist in the construction work. Two years later, all five houses—astonishingly priced at $79,000—have been sold to longtime neighborhood residents, now first-time homeowners.

4

CCLF | STRENGTH IN NUMBERS

lending equity

growth

longevity

lower pricing

A STRONGER BOTTOM LINE: MORE EQUITY CAPITAL (NET ASSETS) IN THE LENDING POOL TRANSLATES INTO MORE FLEXIBLE, LOWER-PRICED LOANS FOR CUSTOMERS

17

004. CAPITAL

In the most literal sense, CCLF’s lending program comes down to the bottom line. More capital means more dollars that CCLF can disburse toward valuable community development projects. Fortunately, loan pool capitalization has grown over 77% in the last three fiscal years—but it is not just more money that makes CCLF financially strong.

The strength of CCLF’s capital base also stems from the diversity of its sources and more importantly, the type of investments in the loan pool. While senior debt1 comprises approximately half of our lending capital, we have nearly a third in permanent equity2 and the remainder is equity-equivalent (EQ2)3 investments.* An equity investment is obviously the most advantageous for CCLF, which owns those dollars free and clear.

Equity (and “equity-like”) investment dollars have an added benefit: they, in turn, can attract additional debt capital, and having more equity capital reduces the risk to the portfolio as a whole. Although not a federally regulated financial institution, CCLF is required by many investors to maintain certain ratios of senior to subordinated debt, including at least 20% equity. The more equity (or equity-like) dollars, the more debt CCLF is allowed to take on, thus growing the overall loan pool.

Since 2001, CCLF has increased its equity capital by a whopping 219%. For a fund its size, CCLF currently owns a very healthy portion of permanent equity (over 28% of lending capital.) This enables CCLF to make larger, lower-priced loans and to take on more risk on a loan-by-loan basis, as the equity [reserves] could cover future losses, should they occur.

Thus, greater equity increases CCLF’s ability to make loans to its core constituency: small, emerging, often capacity-challenged organizations who often cannot find financing anywhere else for their nonetheless worthy projects. After all, CCLF is concerned with the bottom line primarily as a means to an end: financing projects that improve the lives of residents in low- and moderate-income communities throughout metropolitan Chicago.

1

Senior debt may accrue a modest interest rate paid to investors, who expect the principal to be paid back upon maturity.

Equity refers to net assets used for lending received from lending pool grants.

Equity-equivalent (EQ2) investments may accrue interest but are subordinated debt; that is, CCLF could defer paying back the principal, if needed. * From December 31, 2003 audited financial statements.

2 3

16

CCLF | STRENGTH IN NUMBERS

innovative ideas

passion

community connection

energy

CCLF CUSTOMERS BRING JUST THE RIGHT STRENGTHS TO THE MIX: PASSION, TENACITY, GRASSROOTS CONNECTIONS AND INNOVATIVE IDEAS

5

707

500

0 JOBS CREATED

6 500,000

250,000 Commercial Space 106,371

0 REAL ESTATE SQ. FOOTAGE

CCLF/CUSTOMER TRACK RECORD (SINCE 1991) 200

1,000 600

0 HOUSING UNITS CREATED/RETAINED

Business 9.57 Million

1,000 Rental Units 952

1,000,000

Facility 4.54 Million

Single-Family/Condo 288

Cooperative Ownership 148

Supportive Housing 124

Group Home Slots 22

Housing 198.7 Million

Nonprofit Facility 1,175,116

1,250,000 200

750,000

100

0 ADDITIONAL DOLLARS LEVERAGED

CCLF | STRENGTH IN NUMBERS

Holland & Knight Robert M. Mintz, Esq. KMZ Rosenman Maria Hamilton, Esq. Mark C. Simon, Esq. Mayer Browne Rowe & Maw Chae Yi, Esq McGuire Woods Philip Spahn, Esq. David Neboyskey, Esq. Piper Rudnick David E. Singer, Esq. Nat Piggee III, Esq. Quarles & Brady Cynthia Alcantera, Esq. Vedder Price Richard L. Williams III, Esq. Robert W. Dixon, Esq. Wildman Harrold Allen & Dixon Jeffrey P. Gray, Esq. Geoffrey Cockrell, Esq. Winston & Strawn Bill Takahashi, Esq. James Healy, Esq. Special Thanks Jody Adler, Esq. Lisa Boone Sierk H. Braam Michelle Bibbs Dan Broughton Consuella Brown Alderman Walter Burnett (27th Ward) Alderman Michael Chandler (24th Ward) Community Accounting Services Community Economic Development Law Project Matthew H. Cooper, ARM Victor Cortes Charles Daas Jerome Daguio Etta Davis Valerie Denney Jeff Dennis David Erickson-Pearson Nancy Fishman Thomas Fitzgibbon, Jr. Stephen Gladden Caroline Goldstein Todd Gomez Eleanor Gross Tammie Grossman Cheryl Hester Larry Howe Gregory Jeffries

Jesuit Volunteer Corps Dottie Johnson Kevin Kane Susan Kaplan, Esq. Debby Kasemeyer Alan Keaton Patricia Kelly Joanne Kinoy Sara Jo Light Lutheran Volunteer Corps Richard Meyer Rhonda R. McFarland Kerry Nelson Mark O’Meara David Oser Alderman Toni Preckwinkle (4th Ward) Greg Ratliff Lynn Sasamoto Bruce Schiff Bradley Schneider Marshall Snow Statewide Housing Action Coalition Melissa Stubbe John Tuohy Daniel Vercillo Laura Weathered Anne Willmore CONSAF Partners Chicago Jobs Council Nonprofit Financial Center Auditor Desmond & Ahern, Ltd. Board of Directors CHAIR Rafael M. León Chicago Metropolitan Housing Development Corporation VICE CHAIR Patricia Y. McCreary Seaway National Bank TREASURER Edward J. Hoynes, CPA Community Accounting Services SECRETARY Susan Kaplan, Esq. Community Economic Development Law Project

Mohammed M. Elahi Loop Capital Markets LLC Toya Horn Howard Community Activist Ed Jacob Northside Community Federal Credit Union Rev. Dr. B. Herbert Martin Progressive Community Center/ The People’s Church Raymond S. McGaugh, Esq. Greenberg Traurig LLP Richard Peabody Amcore Bank NA Nancy Radner The Partnership to End Homelessness Maria Saldaña Ramirez & Co., Inc. Kathryn Tholin Community Energy Cooperative John L. Tuohy, Esq. Chapman & Cutler (retired) Board Alumni Rev. Donald L. Sharp Committee Members Jeremy A. Addis First Bank & Trust Co. Robert D. Bronstein The Scion Group LLC Daniel Broughton ShoreBank Leslie Davis SB Partners LLC Jodi Gingiss The Resurrection Project Stephen J. Gladden Illinois Housing Development Authority Gladys Jordan Interfaith Housing Development Corporation Paul Peterson LaSalle Bank NA Lynn Sasamoto Citigroup Committee Alumni Julie DeGraff John Kuhnen Staff Calvin L. Holmes Executive Director Debra J. Houghtaling Director of Finance & Administration Kristina Stone Lending Program Manager Chet Jackson Director of Portfolio Management & Technical Assistance

Rose Seremala Office Manager Cat Dean External Relations Officer Juli Miller LVC Program Assistant Moira Reilly JVC Program Assistant Lina Ngo Summer Associate Lisa Rice Robert Morris College, Clerical Intern Recent Staff Alumni Sarah Berke LVC Program Assistant Joseph Donohue JVC Program Assistant Consultants Joy Aruguete Bickerdike Redevelopment Corp.

Bob BrehmTechnical Assistance for Community Organizations Community Accounting Services (pro bono) Linda Greene Lucas Greene Associates National Community Capital Association Consulting Services Teresa R. Prim Prim Lawrence Group Mark Tomaras Photography Warren P. Wenzloff and Jim Weier Applegate & Thorne-Thomsen (pro bono) Salsedo Press

Charles F. Daas North River Commission

15

CCLF LENDING POLICIES Chicago Community Loan Fund bases its lending and portfolio management policies on the standards of the National Community Capital Association (NCCA), ensuring that CCLF is held accountable to high standards of excellence.

CCLF’s professional staff, loan committee and/or board review each loan—evaluating the community benefit, project feasibility, management capacity, collateral and ability to repay. CCLF has established a comprehensive monitoring system to allow its staff to identify and assist borrowers and projects facing challenges.

To diversify risk, CCLF sets a maximum loan size for any one project and any single borrower. Loan loss reserves are set aside in the event that a loan cannot be paid and are routinely monitored and adjusted. As an additional financial cushion, CCLF maintains a permanent capital fund of no less than 20% of all lending pool capital. These funds ensure further protection for investors in the event that losses exceed collateral and loan loss reserves.

To add further financial security, CCLF’s Board of Directors established an operating reserve fund that, at December 31, 2003, totaled $250,542 of unrestricted net assets.

CCLF intends to maintain the reserve at a minimum of 25% of total annual expenses.

Further information is available in the prospectus as well as the notes to the audited financial statements.

To receive a copy of either document, contact the CCLF office at 312.252.0440, ext. 205.

2003 CCLF INVESTORS INDIVIDUAL $489,300 5.0%

TRADE ASSN. $375,000 3.8%

PUBLIC $800,000 8.2% NET ASSETS $2,720,138 27.9%

RELIGIOUS $825,000 8.5%

CORPORATION $2,413,136 24.7%

14

FOUNDATION $2,135,000 21.9%

Corporate Investors Amalgamated Bank of Chicago Bank One Corporation Builders Bank Charter One Bank Cole Taylor Bank Debley, Inc. Fifth Third Bank First Midwest Bank First Security Trust & Savings Bank Household Bank LaSalle Community Development Corporation M&I Community Development Corporation Marquette Bank MB Financial Bank The Northern Trust Company The Private Bank & Trust Company Pullman Bank Ron Freund & Associates, Inc. US Bancorp Community Development Corporation Foundation Investors Calvert Social Investment Foundation Fannie Mae Foundation The F.B. Heron Foundation Grand Victoria Foundation Harris Bank Foundation The Mayer & Morris Kaplan Family Foundation The John D. and Catherine T. MacArthur Foundation Prince Charitable Trusts The Walter and Mary Tuohy Foundation Wieboldt Foundation Religious Investors Catholic Health Initiatives Congregation of the Sisters of Charity of the Incarnate Word Episcopal Diocese of Iowa Evangelical Lutheran Church in America First United Church of Oak Park Passionist Fathers School Sisters of St. Francis Sinsinawa Dominicans Sisters of Charity Sisters of Charity of Saint Elizabeth Sisters of Mercy of the Americas Sisters of the Presentation of the Blessed Virgin Mary Sisters of St. Agnes SSM International Finance

Wheaton Franciscan Sisters Corporation Wisconsin Episcopal Community Investment Fund Other Investors Illinois Housing Development Authority National Community Capital Association U.S. Dept. of Treasury CDFI Fund Individual Investors In 2003/04, CCLF managed capital from 40 individual investors.

Taken as a whole, their capital represented nearly 5.0% of all funds under management.

2003/04 Funders Bank of America Foundation Bank One Corporation Builders Bank Charter One Bank The Chicago Community Foundation Citigroup Foundation Fannie Mae Foundation First Midwest Bank Grand Victoria Foundation Harris Bank Foundation The F.B. Heron Foundation Household International LaSalle Bank Lloyd A. Fry Foundation Marquette Bank The Mayer & Morris Kaplan Foundation MB Financial Bank National City Bank of Michigan/Illinois The Northern Trust Company Polk Bros. Foundation The Private Bank & Trust Company The Richard H. Driehaus Foundation Uptown National Bank of Chicago Washington Mutual Numerous annual campaign contributors 2002/03 Pro Bono Counsel Chapman and Cutler Daniel J. Favero, Esq. Mark O’Meara, Esq. David J. LaSota, Esq. Edward B. Tuerk, Esq. Rebecca Wallenfelz, Esq. Sophia Dobbs, Esq. Susan Rollins, Esq.

CCLF | STRENGTH IN NUMBERS

Ahadi Early Learning Center: Heather Duncan knew exactly the kind of preschool program she wanted for her children. Finding no appropriate or affordable options, however, she decided to open her own school in her home neighborhood, South Shore. An energetic self-starter, Heather has almost single-handedly managed this multiyear effort and has designed the innovative curriculum herself, based on lessons learned from six years teaching in state-run prekindergarten programs. One unique component of Ahadi’s programming will be special monthly workshops for parents on relevant topics, such as how children learn, the value of play and using positive discipline. Scheduled to open in the fall amid considerable “buzz,� Ahadi will create 50 new childcare slots, with half allotted to at-risk or low-income children.

Christian Vision Center (CVC): Many times, especially following the death of her beloved husband, Rev. Marlene Woodson might have lost faith. Instead, she and her son, Seneca, redoubled their efforts and never took no for an answer. Their tenacity was rewarded recently as scores of supporters celebrated the opening of Woodson Complex. This development of beautiful new townhouses provides supportive, permanent rental housing for formerly homeless women and their children. Having spearheaded the first new construction on the east side of Chicago Heights in over ten years, CVC has been asked by Chicago Heights and Cook County officials to do a second phase!

CCLF and its customers draw strength from each other to produce results, as evidenced by our track record. Since 1991, 100 CCLF-financed projects have attracted almost $213 million in additional financing to create or retain hundreds of childcare slots, over 700 jobs, over 1,530 housing units, thousands of social service program slots and nearly 1.3 million square feet of commercial/retail or nonprofit facility space. These outcomes all benefit low- and moderateincome families, creating opportunities for them to lead more fulfilled, productive and prosperous lives in healthier, more vibrant communities across metropolitan Chicago.

7

002. PORTFOLIO

As is oft-said about stock market portfolios, balanced and diversified holdings help reduce risk because the overall portfolio is less subject to the short-term “whims” of the marketplace. The same could be said for CCLF’s loan portfolio. CCLF is often incorrectly characterized solely as a predevelopment lender for affordable-housing projects in Chicago proper. When in fact, part of CCLF’s overall strength stems from a loan portfolio diverse enough that it does not rely too heavily on any one loan product, borrower or project type, industry sector or geographic area. In turn, CCLF’s comprehensive lending work creates housing, access to services, and economic opportunities: all three are critical to improving the quality of

15

Business $871,593 7 Loans

Housing $6,610,949 26 Loans

30

Facility $2,676,838 15 Loans

life for low- and moderate-income Chicagoans.

PRODUCTS: CCLF has seven different loan products: predevelopment, construction, minipermanent mortgage, housing cooperative [mortgage] and equipment/working capital, as well as two types of loans (predevelopment and construction) for small, for-profit firms doing work with high social impact.

The portfolio also contains a healthy mix of short-term and longer-term loans, which provides more earnings stability.

PROJECTS: Because of a diversified portfolio that limits exposure/risk, and our uniquely creative but careful underwriting process, CCLF is able to successfully finance visionary project concepts that are either untried or poorly understood by other lenders.

SECTORS: Current CCLF dollars-on-loan are helping finance a huge variety of community development project types in three different sectors (housing, facilities, enterprise) across the metropolitan area.

Although affordable housing represents the bulk of our current portfolio (approximately 65% of loan dollars), the housing sector is broken down further into several distinct types including single-family/ condominium homeownership, cooperative housing and traditional rental units.

Supportive housing and other service-enriched developments bridge the gap between housing and social service facilities. Supportive housing offers formerly homeless individuals or families sanctuary and support while they rebuild their lives; group homes serve special populations such as women with autism

0 CCLF CURRENT LOANS

BY CATEGORY

8

or at-risk teens with no other options. In the second sector, several loans are financing the acquisition,

CCLF | STRENGTH IN NUMBERS

collaboration

strategic

resources

expertise

STRONGER TOGETHER: STRATEGIC PARTNERSHIPS ENABLE CCLF TO SHARE EXPERTISE AND RESOURCES TO BENEFIT CUSTOMERS

13

003. PARTNERS

CCLF is no “loan” wolf. Rather, CCLF pursues partnerships with other nonprofits, foundations, quasi-government agencies, banks, other CDFIs, even current borrowers. Both informal and formal collaborations promote fresh ideas and keep CCLF integrated into the fabric of the metropolitan community-development marketplace. Such partnerships enable CCLF to share expertise and stretch precious resources, allowing innovative products or initiatives to get off the ground. For example: Chicago Mutual Housing Network (CMHN) supports, develops and advocates for resident-controlled/ resident-managed cooperative housing for low- and moderate-income families.

• Collaborated on design of CCLF housing co-op mortgage loan product.

• Serves as a trade association and routine referral source/technical assistance (TA) provider to housing cooperatives.

• Has borrowed twice: current $125,000 minipermanent mortgage used to purchase office/program space in the (CCLF-financed) Acme Artists Community building.

Steans Family Foundation is dedicated solely to the revitalization of North Lawndale, a distressed neighborhood on Chicago’s west side, providing grants and assistance to North Lawndale groups.

• Has provided lending/TA grants to support CCLF’s work in North Lawndale (a CCLF “focus community”).

• Routinely refers potential loan/TA customers to CCLF. • Lawndale Gateway Initiative: CCLF and LISC/Chicago will be co-lenders, each making $600,000 predevelopment loans to the foundation’s new limited partnership. Steans’s ambitious $40 million project aims to redevelop 79 contiguous lots to create affordable housing and commercial space.

Statewide Housing Action Coalition (SHAC) seeks to preserve/increase the supply of quality affordable housing across Illinois through its housing development and training program as well as its advocacy and organizing work.

• Suburban outreach initiative: SHAC’s key role as an information clearinghouse helps put CCLF “on the map,” building suburban awareness of CCLF’s products and services—including helping to organize and market CCLF Project Readiness Workshops in suburban communities.

• CCLF partially sponsored SHAC’s recent Suburban Affordable Housing Summit, which addressed unique issues facing suburban developers and advocates.

12

CCLF | STRENGTH IN NUMBERS

diversification flexibility

revitalization

comprehensive development

A DIVERSIFIED PORTFOLIO STRENGTHENS CCLF’S ABILITY TO HELP REVITALIZE COMMUNITIES MORE COMPREHENSIVELY

9

construction or rehabilitation of facilities that collectively provide a full spectrum of social services, from case management and counseling to parenting and life-skills classes to literacy and job training.

CCLF PORTFOLIO

Commercial real estate development projects and loans to nonprofit or cooperatively owned enterprises

CONSTRUCTION LOAN

make up the third sector.

Jazz on the Boulevard 1B*++ Construction loan for mixed-income homeownership, rental and public housing units Loan amount: $110,000 Location: Kenwood

GEOGRAPHY: As shown on the maps, current CCLF-financed projects are spread across the city of Chicago, as well as its suburban corridors.

Latin United Community Housing Assn. (LUCHA)* Construction loan for building facade rehabilitation Loan amount: $25,000 Location: West Humboldt Park

EVANSTON

Skokie Blvd

North Chicago

290

Low End Adventures Line of credit to acquire/rehabilitate HUD homes Loan amount: $250,000 Location: Marquette Park

94

Morton Grove

Howard

90 Elgin

Lake Michigan

SKOKIE

OK Share & LakeShore New Homes LLC Construction financing for new, for-sale housing (New Homes for Chicago) Loan amount: $300,000 Location: North Oakland

290

Devon

Maywood

Ashland

Pulaski

Central

55 355

CHICAGO

Lawrence 57

Irving Park

94

WECAN 4++ Gap construction financing for affordable rent-to-own housing Loan amount: $25,000 Location: Woodlawn

Housing

Belmont

Facility Business

Ahadi Early Learning Center** Equipment/working-capital loan for daycare center Loan amount: $30,000 Location: South Shore

North

Chicago Warren

Marketplace: Handwork of India Working-capital line of credit Loan amount: $50,000 Location: Skokie, IL

Og de

n

N

Roosevelt

Salsedo Press 4++ Printshop equipment purchase Loan amount: $90,000 Location: East Garfield Park

Halsted

Western

47th

Kedzie

Cermak

Salsedo Press 5*++ Printshop equipment purchase Loan amount: $184,198 Location: East Garfield Park WECAN 5**++ Equipment/working-capital loan to fund rental housing project-related expenses.

Loan amount: $35,000 Location: Woodlawn

CHICAGO

Stony Island

63rd

95th

Cottage Grove

87th

HOUSING COOPERATIVE LOAN Yates

71st

79th

10

EQUIPMENT/WORKING CAPITAL LOAN

Ellis Cooperative* Loan for costs associated with building code compliance Loan amount: $350,000 Location: Oakland

CCLF | STRENGTH IN NUMBERS

Freedom Road Cooperative Acquisition/minipermanent mortgage for cooperative housing Loan amount: $619,468 Location: Uptown

Dream Center Minipermanent mortgage for youth development facility Loan amount: $51,000 Location: Maywood, IL

Good News Partners 1*++ Acquisition/minipermanent mortgage for cooperative housing Loan amount: $354,000 Location: Rogers Park

El Hogar del NiĂąo Acquisition of longtime daycare facility Loan amount: $320,000 Location: Pilsen

Logan Square Cooperative 1A/1B*++ Minipermanent mortgage for housing cooperative Loan amount: $512,000 Location: Logan Square/Avondale North American Students of Cooperation (NASCO) 1++ Predevelopment loan for building code compliance for student cooperative housing Loan amount: $45,000 Location: Hyde Park Stone Soup Cooperative 1++ Acquisition/minipermanent mortgage for cooperative housing Loan amount: $355,000 Location: Uptown Stone Soup Cooperative 2++ Acquisition/minipermanent mortgage for cooperative housing Loan amount: $165,000 Location: McKinley Park

MINIPERMANENT MORTGAGE LOAN Becker House Acquisition of supportive-living facility for women Loan amount: $135,000 Location: Rogers Park Chicago Mutual Housing Network 2++ Minipermanent mortgage to purchase condominium program/office space Loan amount: $125,000 Location: Logan Square/East Humboldt Park Community TV Network Minipermanent mortgage to purchase condominium program/office space Loan amount: $150,000 Location: Logan Square/East Humboldt Park Cook County Housing Development Corp.* Bridge loan to purchase and rehabilitate senior housing building Loan amount: $250,000 Location: Morton Grove, IL Creative Assistance Development, Inc.* Minipermanent mortgage loan to purchase and rehabilitate residential group home Loan amount: $200,000 Location: Elgin, IL

Faith Tabernacle Baptist Church Landbanking for future community center Loan amount: $234,000 Location: Stony Island Park Geneva Foundation Acquisition/rehabilitation of group home for troubled youths Loan amount: $281,000 Location: West Humboldt Park Housing Opportunity Development Corporation Acquisition and rehabilitation of affordable rental housing Loan amount: $220,000 Location: Evanston, IL Ignatia House Acquisition/renovation of supportive-living facility Loan amount: $144,000 Location: Avondale

PREDEVELOPMENT LOAN Chicago Victory Church Predevelopment loan for affordable rental housing Loan amount: $50,000 Location: West Garfield Park Featherfist Development Corp.* Predevelopment loan for new administrative facility of established social service agency Loan amount: $193,000 Location: South Shore Five Points Economic Development Corp.* Predevelopment loan for mixed-use office/retail complex Loan amount: $409,400 Location: North Chicago, IL Jazz on the Boulevard 1A++ Predevelopment loan for construction of mixed-income homeownership, rental and public housing units Loan amount: $200,000 Location: Kenwood Madden Wells Phase 1B Associates** Predevelopment loan for mixed-income rental and public housing units Loan amount: $350,000 Location: Kenwood

Kinzie Industrial Development Corporation (ICNC 2)++ Minipermanent mortgage refinance for small industrial incubator Loan amount: $250,000 Location: West Town

Mission Metamorphosis, Inc. Predevelopment expenses for supportive-housing facility serving homeless teen mothers and their children Loan amount: $75,000 Location: North Lawndale

Mustard Seed of Chicago Acquisition of social service program facility Loan amount: $349,500 Location: Near North

FOR-PROFIT PREDEVELOPMENT/ CONSTRUCTION LOAN

Near Northwest Arts Council 1B**++ Minipermanent mortgage loan for bed and breakfast enterprise Loan amount: $42,995 Location: Logan Square/East Humboldt Park

New Chatham LLC (Pyramid Group) Predevelopment loan for new, for-sale housing (New Homes for Chicago) Loan amount: $65,000 Location: Chatham

Resource Center Acquisition of buyback recycling site Loan amount: $55,000 Location: Uptown

Safeway Keeler Inc.* Predevelopment loan for mixed-use property (housing and commercial space) Loan amount: $300,000 Location: North Lawndale

Rimland Services 1**++ Acquisition/rehabilitation of a group home for women with autism Loan amount: $252,938 Location: Evanston, IL

South Shore Health Center Predevelopment loan for rehabilitation of a holistic healthcare/retail facility Loan amount: $75,000 Location: South Shore

Rimland Services 2**++ Acquisition/rehabilitation of a group home for women with autism Loan amount: $125,400 Location: Maywood, IL

Urban Equities, Inc. Predevelopment/construction line of credit for new single-family homes Loan amount: $75,000 Location: Grand Crossing/Avalon Park

St. John’s Community Outreach Organization Acquisition/rehabilitation of supportive rental housing

Loan amount: $600,000 Location: Grand Boulevard

** * ++

New loan in 2004 New loan in 2003 Repeat borrower

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