3rd quarter 2014

COMMUNITY BLUEPRINT:

CCLF’S NEWSLETTER OF COMMUNITY DEVELOPMENT PROJECTS, ISSUES & FEATURES 3rd Quarter/2014

87 Year Old Grandmother Inspires Two New Investments in CCLF Joan Berry became a new individual investor in Chicago Community Loan Fund in 2014 after reading an article on Irene Ginger. Ms. Ginger is an 87 year old investor in CCLF that decided a long time ago she was interested in socially-conscious investing. Ms. Berry was a donor to CCLF for a number of years and heard about social investing but thought it did not apply to her until she read about Ms. Ginger then she thought, “why not me?”

In 2004, Ms. Berry became President of EJM Engineering, Inc. a successful WBE/DBE providing designs for public infrastructure with Joan Berry, President of EJM a focus on transportation development. Some Engineering of her public works projects include the Wacker Drive Reconstruction and Chicago Bus Rapid Transit Implementation. With her strong background in city and state infrastructure, Ms. Berry has seen extensive deterioration of certain neighborhoods recognizing there is never enough investment in community developments, “Fixing roads is just a small piece of what a community needs. Roads without good schools, parks or homes will not solve the problem. All of the pieces have to fit together for community development to work,” she observed.

CCLF provides access to capital in low-income communities promising investors like Ms. Berry a social return. This social return can be jobs for local youth, access to community services or healthy foods, affordable housing and much more. One of the biggest indicators of success in community development is the amount of funding that is leveraged with one of CCLF’s loans. On average for every dollar that CCLF provides in financing, another $10 dollars is invested in our customers’ projects. Since its founding, CCLF has been able to leverage $1 billion in additional public and private capital for community development. This was a motivating factor for Ms. Berry. “Social investing is better than putting your money in a mutual fund where you don’t know how it is helping anyone. I am more interested in the social impact than how much interest I can earn.”

Ms. Berry wants CCLF to continue on course to develop good projects that benefit Chicago’s communities. She chose CCLF for her first social investment because of the 1

In This Issue Page 1

• Investor Spotlight: Joan Berry

Pages 2-3

• Investor Spotlight: Kristin and Irene Ginger • Chet Jackson Receives Leadership Award • CCLF & Elevate Energy Form Partnership • Ed Jacob is Recognized by NHS

Pages 4-5

• CCLF Staff Share Expertise at 2014 OFN Conference • CCLF Awarded $1.25MM from CDFI Fund • Affordable Requirements Ordinance

Page 6-7

• Affordable Requirements Ordinance Continued • Partners in Progress Video • CCLF Noteworthy • Board of Directors

Page 8

• CCLF Credit Memos • CCLF Staff

organization’s mission. “I admire CCLF’s business model for developing communities.

My past support for this and other organizations has been in the form of donations. I was intrigued by the concept of investing rather than donating. I have meant for some time to invest in CCLF, and the time was right for me financially to do so. It is good to have an investment option that also is achieving social goals.”

One of the things Ms. Berry discovered was social investing was easy. She was surprised how simple it was to pick up the phone and later fill out a few forms. CCLF lets the investor drive the covenants and pays out interest per the agreed upon terms.

Investing in CCLF provides another vehicle for individuals that seek another option for their investment income. Social investing is not only for insurance companies or banks. Ms. Berry concluded, “It is great that CCLF provides individuals a way to invest in its activities, rather than relying just on lending institutions.”

Two Generations of CCLF Investors: Kristin and Irene Ginger

Chet Jackson Receives Leadership Award Congratulations to Chet Jackson, Executive Director of West Humboldt Park Family and Community Development Council on receiving the 2014 Neighborhood Housing Services’ (NHS) Neighborhood Leadership Award at their Annual Meeting. Chet’s agency is a CCLF borrower and coquarterback in the Partners and Progress initiative to transform an eight block stretch on West Chicago Avenue between Kedzie and Central Park. NHS stated, “Chet shares NHS’ vision of neighborhood revitalization, seeing the connection between a safer, more vibrant Chicago Avenue and attracting families to buy their first homes in West

Kristin Ginger was helping her 87 year old grandmother, Irene Ginger, make a copy of a newsletter when she noticed her grandmother’s photo in the CCLF Community Blueprints newsletter. She read the article and asked her grandmother why she was doing social investing. Kristin learned her grandmother initially made an investment in CCLF in 1993 when her youngest son, Paul Ginger, was a board member and has renewed that investment time after time.

Kristin did what studies say the millennial generation does well. She did her research using her social networks. She called her uncle Paul to learn what he knew about Chicago Community Loan Fund, she viewed the CCLF webpage and talked to some friends about social investing to see what they thought. Finally, she spoke to her dad who is financially cautious and believes in saving for retirement. “When my dad did not have a problem with me investing in CCLF, then I knew it had to be a good use of my limited finances.”

It takes a certain level of risk to look at a community with low unemployment and high crime rates and decide to open a grocery store or rehab a foreclosed property and provide affordable housing. Kristin learned from speaking with her uncle, Paul, that loan funds were created across the country because banks weren’t willing to do the kind of lending that involves high risk and socially conscious individuals weren’t afraid to provide capital in low-income areas. “My uncle told me when CCLF was founded early investors wanted CCLF to take those risks. There is a terrible cycle of 2

Chet Jackson, Executive Director, West Humboldt Park Family and Community Development Council. Photo by Steve

poverty that is difficult to break out without a broad systematic approach, and there is a level of risk involved in community development that is needed to break that cycle.” Kristin also appreciated the fact that CCLF listens to communities’ needs and, through their work, enables and empowers people in these communities.

Kristin started working in the nonprofit sector after doing a year of service as an AmeriCorps Vista and going to graduate school. She traveled in India, volunteered at an elephant sanctuary, and worked with refugees. While at college, she was active in Amnesty International and learned about divestment campaigns and developed a more serious outlook on how one’s investments can improve or hurt a society.

Advice for New or Younger Investors Kristin believes her generation is not always comfortable talking about money and they don’t have financial advisors. Yet, she thinks it is a good idea for young people to explore their options beyond putting all of their savings in a money market account or real estate. She had many activist friends and family members she was able to talk to about social investing. “It made sense for me because I really liked the fact that I was investing in my own community,” said Kristin. ”This kind of investing pays me interest while improving the community in which I live.”

To learn about making an investment contact Jane Ames, Vice President of Finane at James@cclfchicago.org or (312) 252-0444.

CCLF and Elevate Energy Form Partnership CCLF and Elevate Energy have become partners to help CCLF customers save on energy consumption. CCLF is offering a new loan option for its Neighborhood Investor Lending Program (NILP) customers which provides lower rates to developers that follow recommendations provided by Elevate Energy. Elevate Energy designs and implements efficiency programs that lower costs, protect the environment, and ensure the benefits of energy efficiency reach those that need them most. They apply this triple bottom line approach at the household, building, and community level and collectively they’ve helped over 45,000 families save more than $30 million on their energy bills. CCLF’s new Energy Efficiency Loan Option will target customers providing 1-4 units of affordable housing and want to lower the cost of their utility bills.

NHS Bids Farewell to Ed Jacob CCLF Board Member, Ed Jacob, was acknowledged

by Neighborhood Housing Services (NHS) of Chicago for his commitment to strengthening families by providing services and programs that allow them to live in affordable homes. Ed served as the Executive Director of NHS Chicago for the past four years and led the expansion of the organizations programs in the suburbs of Chicago.

Ed has more than 30 years of community development experience working in banking and a credit union prior to his time at NHS. CCLF joins NHS in saluting Ed for his leadership at NHS and on the board of CCLF.

How It Works NILP customers will complete an application for a free energy audit on Elevate Energy’s website. Elevate Energy will have an analyst conduct a full-service assessment and recommend practical improvements that will save energy and water. Technical assistance will be provided by CCLF and Elevate Energy educating customers on financing options and grants that can help pay for building improvements that save energy.

While CCLF realizes that energy savings will ultimately reduce operating expenses, we understand that some of these upfront retrofits carry additional costs. That is why this Energy Efficiency Loan Option offers a lower interest rate on construction and mini-permanent loans, along with more flexibility on loan-to-value and loan-to-cost financing. To learn more, visit www.cclfchicago.org/EnergyEfficiencyLoanOption.

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Ed Jacob was acknowledged at NHS’s 40th Anniversary Celebration CCLF welcomes Kristin Faust as the new President of NHS. She is a CCLF investor and has a passion for social justice and strengthening Chicago Neighborhoods.

CCLF Staff Share Expertise with National Audience Diversity, Equity and Inclusion was this year’s theme at the 30th Opportunity Finance Network (OFN) conference held in Denver, Colorado October 14 - 17, 2014.

This is the leading industry educational opportunity for Community Development Financial Institutions (CDFIs). With 1,100 participants and 70 unique educational offerings, the conference provided skill building, professional networking and examples of successful programs across the country that were replicable models of social justice through access to capital in low wealth communities.

2014 Opportunity Finance Network Conference in Denver Colorado

Chicago Community Loan Fund had two members of the team serve as workshop presenters. CCLF’s Director of Lending Operations, Mark Fick, was part of Housing Finance Best Practices: This is How We Lend. Mark shared with the audience the entire process from loan application to credit committee approval and offered tips on how other CDFIs can conduct effective underwriting without over burdening the staff and the volunteer loan committee.

CCLF President, Calvin L. Holmes; Janis Bowdler, Senior Program Director, JPMorgan Chase Foundation; Yvette Ruiz, Community Relations Manager Office of Nonprofit Engagement and Sandy Fernandez, Director of National Programs and Strategies for JPMorgan Chase and Co.

Mark Fick, CCLF and co-panlist Connie Max, Local Initiatives Support Corporation CCLF President, Calvin L. Holmes, participated on two panels and moderated a workshop on the history of the CDFI industry. CDFIs: Our Movement, Our History was a standing room only workshop that delved into challenges and victories of Community Development Financial Institutions. Calvin moderated this session that celebrated 30 years of organizations such as Chicago Community Loan Fund that has taken the risk time-and-time again to provide the needed capital in low- to moderate-income neighborhoods. OFN has put together three short videos entitled, CDFIs Making History as part of the celebration.

Calvin shared how CCLF’s collaboration with Neighborhood Housing Services of Chicago and Community Investment Corporation formed the Midwest JPMorgan Chase CDFI Cluster Initiative. He highlighted the benefits of working with other CDFIs and the larger impact it is having in the Chicago region. One key takeaway was the increase in referrals between the organizations and collaborative spirit to tackle community development issues in some of the toughest areas in desperate need of revitalization.

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Connect with CCLF You can stay up to date on CCLF and other industry news and events by following us on Twitter @cclfchicago.

@cclfchicago

Affordable Requirements Ordinance Janice Bowdler, JPMorgan Chase Foundation, Calvin L. Holmes, CCLF, Ceyl Prinster, Colorado Enterprise Fund; and Julie Gould, Mercy Loan Fund He also served on a panel - Amplifying Impact: CDFIs and the Community Quarterback Model - where CCLF is in partnership with West Humboldt Park Development Council on an initiative to transform an eight block corridor with new commercial retail, homeownership, affordable housing, healthy food options and branding. This session focused on the Partners in Progress grantees of Citi Foundation and the Low Income Investment Fund (LIIF). Each successful quarterback model is featured in a video produced by Citi and LIIF (see article on page 6 on CCLF’s video).

U.S. TREASURY AWARDS CHICAGO COMMUNITY LOAN FUND $1.25 MILLION Chicago Community Loan Fund (CCLF) was a recipient of a Community Development Financial Institutions (CDFI) Program grant in the amount of $1,250,000. The U.S. Treasury made the announcement in a press release explaining the goal of its $195.4 million investment in CDFIs across the country. “CDFIs and Native CDFIs are important community partners providing critically needed financing that not only allows families to buy their first home, or entrepreneurs to start or expand a business, but that generates economic growth and revitalizes America’s low-income and economicallydistressed communities,” said Jessica Milano, Deputy Assistant Secretary for Small Business, Community Development, and Housing Policy at the U.S. Department of the Treasury.

The U.S. Treasury’s Community Development Financial Institutions Program invests in and builds the capacity of CDFIs, empowering them to grow, achieve organizational sustainability and contribute to the revitalization of their communities.

Chicago Community Loan Fund has been designated by the U.S. Treasury as a CDFI since 1996.

Photo by Steve Becker

CCLF will use its award to focus on expanding its suburban foot print and its Neighborhood Investor Lending Program (NILP). NILP provides smaller scale for-profit and nonprofit developers with the support and capital needed to acquire, rehabilitate and own 1-4 unit buildings to help stabilize lower wealth communities impacted by the 5

Mayor Rahm Emanuel established the Affordable Housing Task Force consisting of community leaders including CCLF President, Calvin Holmes, aldermen and developers to make recommendations to reform the City’s Affordable Requirements Ordinance (ARO) and add 1,000 affordable housing units over the next five years. This would represent a fivefold increase over the 187 units created by the ARO since 2007 and ensure that more affordable housing options are offered in high growth neighborhoods.

Passed into law 11 years ago and last updated in 2010, the ARO requires new residential developments that obtain zoning changes, include City land, or receive financial assistance to set aside affordable units or pay a per-unit in lieu fee. Developer payments are deposited into the Affordable Housing Opportunity Fund, which supports the creation and preservation of affordable rental housing and provides operating support for the Chicago Low Income Housing Trust Fund, a notfor-profit that provides rental subsidies to very-low-income households.

foreclosure crisis. The goal is for the developers to put these properties back on the market providing affordable rental housing for community residents living in low- to moderate-income neighborhoods.

“This award will help CCLF leverage an additional $6 million and increase our lending capacity to deepen investments in our 6-county target market, stabilizing communities through 1-4 unit housing developments,” stated Calvin L. Holmes, President of CCLF. “CCLF is grateful for the new influx of capital from the U.S. Treasury and embraces the role it plays in Chicago area community development finance as a flexible provider of diverse development financial products and services.”

Watch the Video: Chicago Community Loan Fund & West Humboldt Park Family and Community Development Council

Donate to CCLF

Watch the video at Citi’s Partner in Progress website.

As co-quarterbacks, the Chicago Community Loan Fund (CCLF) and the West Humboldt Park Family and Community Development Council (WHPFCDC) are working to transform the West Chicago Avenue corridor, a commercial strip about four miles from downtown Chicago. With their partners, the two organizations are working to lower building vacancy rates and bring in local businesses to neglected commercial space. CCLF and WHPFCDC are exploring opportunities based on feedback from community residents who would like to see healthy groceries, restaurants, and health services in their neighborhood. The corridor has already attracted some new businesses, including Turkey Chop, a sit-down restaurant offering healthy meals. On Mondays, Turkey Chop serves as a neighborhood soup kitchen, feeding over 700 people weekly. Watch the video and share it widely. You can find it at http://tinyurl.com/o5r47r8.

CCLF Noteworthy Thank You to Funders and Investors

For their recent grants, CCLF thanks, Bank of America Foundation, JPMorgan Chase Foundation, MB Charitable Foundation, Polk Bros. Foundation, U.S. Bank Foundation and Wintrust Financial Corporation.

For their recent investments and renewals, CCLF thanks Donna K. Altschuler, Joan Berry, Kristin Ginger and The PrivateBank.

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We need your financial support to provide targeted technical and financial assistance that empowers community-based developers to help create communities where people thrive. To support our work with a secure online donation, please visit www.cclfchicago.org/ support-us, or call Juan Calixto at 312-252-0424.

CCLF Staff & Board News

CCLF welcomes Jerome Byers to its board of directors. Byers is the Regional President of Consumer Banking for the West Region of Citibank and also serves as the Chairman/CEO of Citicorp Payment Services. Byers is directly responsible for delivering financial performance, sales, service and operational soundness for 550 Citibank branches in California, Texas, Illinois and Nevada consisting of more than 4,800 Citigroup employees. Byers has over two decades of experience in small business, retail and commercial banking.

New CCLF Board Member Jerome Byers, Citibank CCLF also welcomes back Angela Bennett as Controller. She worked in CCLF’s finance department as an associate four years ago then went on to obtain her CPA and pursue an MBA while further developing her skills at CNA Financial Corporation. As Controller, Angela is responsible for the accuracy of CCLF’s reported financial results overseeing cash receipting and posting of payments, accounts payable and general ledger transactions. She also coordinates the budget and audit and compliance with generally accepted accounting principles. Bennett is a CPA with a Bachelor of Accounting from Southern Illinois University and is currently completing her MBA at DePaul University.

Shanna Love joined CCLF in August 2014 as a Loan Closing Officer. In this position, she manages all aspects of the loan closing process for the various customers she serves. Prior to CCLF, she held several paralegal positions where she worked with counsel on various acquisitions and complex real estate transactions. Shanna earned her Associate’s in Paralegal Studies from Northwestern College and a Bachelor’s in Management from Loyola University-Chicago with a minor in Communication.

Jane Ames is a newly appointed member of the Financial Executives Research Foundation (FERF)’s Development Committee, which is a Financial Executive International research affiliate. It was founded in 1944 with a mission to advance the profession and practices of financial management through research and education.

FERF publishes about 30 original research reports and articles annually and receives national press and is referenced in professional journals.

Mark Fick is a newly appointed mentor for the new Good Food Business Accelerator at 1871. 1871 is Chicago’s entrepreneurial hub for digital start-ups. Good Food Business Accelerator works to increase greater access to sustainably produced vegetables, fruits, meat, and dairy.

CCLF Board of Directors John L. Tuohy, Chair Chapman and Cutler LLP (retired) Matthew R. Reilein, Vice Chair Chase Charles S. Walls, Treasurer ComEd Mohammed M. Elahi, Secretary Consultant Jody Adler The Law Project Jerome Byers Citibank Robert G. Byron Blue Vista Capital Management, LLC Charles F. Daas University of Illinois at Chicago Thomas P. FitzGibbon, Jr. Talmer Bank and Trust Erik L. Hall Grosvenor Capital Management, L.P. Ailisa Herrera MB Financial Bank Edward J. Hoynes Community Accounting Services Ed Jacob Patricia Y. McCreary Office of the Clerk of the Circuit Court of Cook County Raymond S. McGaugh McGaugh Law Group LLC Eric S. Phillips Village Bank & Trust (a Wintrust Community Bank) Nancy Radner The Primo Center for Women and Children Mark C. Spears The PrivateBank

CCLF Staff Angela Bennett, Shanna Love, Jane Ames and Mark Fick

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Kathryn Tholin Center for Neighborhood Technology

Credit Memos: CCLF Lends $7.08 Million in 3rd Quarter Englewood Square, LP received a $500,000 predevelopment loan for a new five acre, grocery anchored retail development located in Englewood. This loan is part of CCLF’s Healthy Foods Financing Initiative. Thanks to David Bamlango of DLA Piper for serving as CCLF’s counsel on this transaction.

The Kwame Nkrumah Academy, Inc received a $2,794,000 construction/minipermanent loan to upgrade the school’s facilities and improve accessibility in Roseland.

Thanks to Ami Patel of Chapman Cutler LLP for serving as CCLF’s counsel on this transaction.

7601 S. King Drive, LLC received a $148,000 mini-permanent loan to stabilize 8 units of affordable rental housing in Chatham. This loan is part of the Cook County Preservation Compact. Thanks to Jessica Simon of Paul Hastings for serving as CCLF’s counsel on this transaction.

100 Orchard Drive LLC (dba Country Squire Foods) received a $660,000 minipermanent loan to finance a grocery store in Park Forest, IL. This loan is part of CCLF’s Healthy Foods Financing Initiative. Thanks to Leigh Waterman of DLA Piper for serving as CCLF’s counsel on this transaction.

Betty Shabazz International Charter School received a $1,300,000 construction/ mini-permanent loan for building renovations and improved accessibility in Grand Crossing. Thanks to Michael Wright of Kirkland Ellis for serving as CCLF’s counsel on this transaction.

CCLF Staff Calvin L. Holmes President Rob Rose Chief Operating Officer/Executive Vice President, Programs Jane I. Ames Vice President of Finance Juan Calixto Vice President of External Relations Mark Fick Director of Lending Operations Lycrecia Parks Director of Portfolio Management Deborah Sabol Director of Operations Angela Bennett Controller Wendell Harris Senior Loan/Program Officer Evelyn Turner Senior Loan Closing Officer

$770,000 mini-permanent loan to finance repairs on 7 Rimland Services received a $150,000 existing group homes in Suburban Cook and Lake Counties. Thanks to Mark O’Meara and Ryan Bowen of Chapman & Cutler LLP for serving as CCLF’s counsel on this transaction.

Kevin Truitt Senior Loan/Program Officer

Emmanuel House received a $325,000 mini-permanent loan to refinance 2 affordable rental housing properties in Aurora, IL. Thanks to Jeff Gray of Barnes & Thornburg for serving as CCLF’s counsel on this transaction.

Kallie Rollenhagen Technical Assistance Program Officer

3525 S. King Drive, Inc. received a $580,000 construction/mini-permanent loan to convert an abandoned property into a law office for Barclay Law Group, P.C. This loan is part of CCLF’s Commercial Real Estate Initiative. Thanks to Margaret Cahoon of Kirkland Ellis for serving as CCLF’s counsel on this transaction.

Elizabeth Ginsberg Portfolio Management Associate

Shanna Love Loan Closing Officer

Bettye Claggette Finance & Accounting Associate

Lincoln Stannard Portfolio Management Associate Deandre Tanner Finance & Accounting Associate Aaron Akers Program Assistant Consultant Chelsi Cicekoglu Lender

The mission of the Chicago Community Loan Fund is to provide flexible, affordable and responsible financing and technical assistance for community stabilization and development efforts and initiatives that benefit low- to moderateincome neighborhoods, families and individuals throughout metropolitan Chicago.

Newsletter Credits Juan Calixto Calvin Holmes Kallie Rollenhagen Printed by: Salsedo Press

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