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summer 2005

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First Quarter 2005
Part 24 Investments

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This Just In... OCC's Districts Report on New Investment Opportunities for Banks
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OCC's Community Affairs Department

(202) 874-5556


Articles by non-OCC authors represent their own views and are not necessarily the views of the OCC.

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This Just In... OCC's Districts Report on Investment Opportunities for Banks

Looking for new investment ideas? In this article, OCC's District Community Affairs Officers (DCAOs) report on financing initiatives and partnership opportunities in each of OCC's four districts. In addition to being able to provide more information about these and other community development investment opportunities, DCAOs are available to consult with national banks in developing successful approaches to community developing lending and service delivery approaches.

Click on the map below for the DCAOs in your district.

Image map of the four districts

Northeastern District Image

Northeastern District

John Farrell (617) 482-1643
Denise Kirk-Murray (212) 790-4053



Equity Opportunities Grow In Delaware

The Delaware Community Investment Corporation (DCIC) recently closed a $30 million equity fund under the organization's Affordable Housing Equity Program.   DCIC finances and invests in housing and related activities designed to address the needs of low- to moderate-income people in Delaware.   DCIC was established as a multibank community development corporation in 1994.   One of DCIC's goals is to sponsor and administer an equity fund through which Delaware banks may invest equity in projects throughout the state that qualify for tax credits.   With the addition of this new round of funding, the total equity made available by DCIC for affordable housing projects has grown to over $150 million. These funds have assisted in the production of 2,400 units of affordable housing.

In December 2004, DCIC announced eleven investors committed $10 million to its New Market Tax Credit Fund (NMTC).   DCIC was the first community development entity in Delaware to receive an allocation of tax credits under the NMTC program.   It is now taking applications for qualifying projects that will involve the development or rehabilitation of real estate considered to be public investments.

For further information, contact Doris Schnider, president of DCIC, at or (302) 655-1420.

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Central District Image

Central District

Paul Ginger (312) 360-8876
Norma Polanco (216) 447-8866

Indiana Redevelopment Corporation Receives New Markets Tax Credits

The Indiana Redevelopment Corporation (IRC), a joint venture between the nonprofit Indiana Association for Community Economic Development and the real estate investment company House Investments, Inc., received a $25 million allocation of new markets tax credits in May 2004.   IRC will use the tax credits to make flexible loans and investments in non-housing real estate projects such as commercial, industrial, office, and retail developments, and in community facilities such as day care centers and community centers in low-income communities in Indiana.   Banks can purchase new markets tax credits from IRC.   Banks also can refer prospective borrowers to IRC for equity and for subordinate financing while participating in such projects as senior secured lenders.   Contact: Doug Sylvester at (317) 580-2535 or

Adventures in ACEnet Ventures Fund

ACEnet Ventures Fund, a community development venture fund, is dedicated to assisting distressed central Appalachian communities in 27 counties across Ohio, Kentucky, and West Virginia.   This fund provides equity and debt investments in specialty food and technology businesses, including start-ups, as a potential source of wealth creation for the low-income owners and employees of the businesses.   Banks can invest in the fund through equity equivalent investments.   Contact: Rick Krieger at (740) 592-3854, or log on to

Cincinnati Development Fund

Cincinnati Development Fund (CDF) is a certified community development financial institution established in 1988 to finance affordable housing development and community revitalization in the Greater Cincinnati area. CDF provides capital and financial consulting as a catalyst for comprehensive community development. CDF has five active loan pools, of which the Community Reinvestment Loan Pool provides affordable housing construction and permanent financing.   Under this pool, developers can borrow for both construction and permanent financing using one mortgage note and therefore only necessitating one closing.   CDF is now seeking new investors for Loan Pool VII for a three-year commitment.   Contact: Robin McNulty at (513) 721-7211 or log on to

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Southern District Image

Southern District

Karol Klim (678) 731-9723 x252
David Lewis (214) 720-7027

Georgia Banks Investing in Affordable Housing

The Low Income Housing Tax Credit Program (LIHTC), created in 1986 and made permanent in 1993, is an indirect federal subsidy used to finance the new construction or rehabilitation of affordable rental housing under section 42 of the IRS code.

In 2001, the Georgia House of Representatives and Senate unanimously approved a state LIHTC program administered through the Department of Community Affairs. The credits provided by the program offer a dollar-for-dollar reduction in state income taxes and can satisfy bank CRA requirements in many instances.

Stateside Capital, LLC, headquartered in Atlanta is a for-profit organization formed to consolidate credits from various sources and offer them as investment opportunities to banks, corporations, and individuals. Minimum investments range from $100,000 in commingled funds to substantially higher amounts in private partnerships. The credits flow over a 10-12 year period and rates of return will vary with market conditions. The funds are comprised of properties throughout the state of Georgia that meet required tenant income guidelines. Because the state program mirrors its federal counterpart, the state investor receives the benefit of the due diligence performed by the large federal tax credit investors as well as the federal tax credit syndicators. For information or to contact Stateside about investment opportunities, e-mail, or call (404) 250-4190 or go to

Revelation Urban Development Institute, Houston, Texas

Houston area bankers now can refer loan prospects to a one-stop service to finance and structure community development projects.   The Revelation Urban Development Institute (RUDI), a nonprofit incorporated in April 2002, helps eliminate the mistakes that cost time and money according to its president, Steve Brown.   Bankers, who participate in the program by making investment commitments, lending commitments, or both, can also refer prospects to the organization for financial analysis and loans packaging.   The organization has years of lending and development experience, assuring investors that all elements of the project proposal are strategically and economically sound.   They package the project for land acquisition, construction, or rehabilitation of single or multi-family residences, senior housing, retail commercial or faith-based facilities that serve the needs of low- and moderate-income (LMI) individuals and areas.   Its primary goal is to improve the quality of life for LMI families by stimulating community and economic development projects.   In the process, they work to increase the capacity of community-based groups (both community-based organizations (CBOs) and community development corporations (CDCs)) to develop affordable housing by providing expert technical assistance and resources. They also develop housing as a joint venture with CDCs and they operate independent community development projects.   The organization is a community housing development organization (CHDO) certified by the City of Houston and Harris County.   For more information, contact Steven Brown at (713) 503-5124 or by e-mail at:

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Western District Image

Western District

Susan Howard   (818) 240-5175
Dave Miller (720) 475-7670

California Organized Investment Network

In 1996, California Organized Investment Network (COIN) was incorporated to stimulate capital investing by California's insurance industry.    By investing in economic development and affordable housing projects and programs, the state's low-and moderate-income (LMI) urban and rural communities would benefit.   Originally established as a three-year pilot program, COIN has become a permanent operation with a staff of three, soliciting and analyzing investment opportunities throughout the state.   Since 1997, over $1.3 billion has been invested in 635 COIN qualified community development investments.   Investments are made on a direct or indirect basis (through intermediaries), and run the gamut of CRA and community development qualifying investments.   The organization regularly identifies opportunities in its Investment Bulletins and reports on new investment opportunities .   COIN also runs its own community development financial institutions (CDFI) program, certifying community development programs and projects around the state.

Two popular programs stand out among the opportunities identified by COIN.   First are the deposits or equity investments in California's community development banks and credit unions.   COIN recommends that the investments be made in federally insured financial institutions but does not make any recommendations relating to interest rates.   Each institution negotiates with depositors on rates, varying from 0 percent to market rate.   The second well-known opportunity is the COIN CDFI Premium Tax Credit Program.   COIN has received an annual allocation of $10 million from the state budget.   An insurer or other financial institution may make an investment (minimum $50,000) into a COIN-certified CDFI and receive a 20 percent tax credit based on an investment maturity of at least five years.   Many of California's insurers and banks of all asset sizes have participated in both programs over the last seven years.  

For more information on COIN, please visit its Web site at   Delores McKinnon, the organization's director, may be reached at  

Expanding Tax Credit Opportunities In Iowa

The Iowa Equity Fund, LLC (IEF), a limited liability company formed in 2001, promotes the development and sustainability of affordable housing through the use of the federal low-income housing tax credit (LIHTC) program.   The formation of IEF resulted from cooperative efforts of many experienced Iowa affordable housing developers, and financial grants from the Iowa Finance Authority, as well as several banks.   In addition to underwriting investments in the federal LIHTC program, IEF staff provides technical assistance to developers, owners, and management companies on the development and management of tax credit properties.   IEF will syndicate and assist in all types and sizes of affordable housing properties with emphasis on rural, difficult to develop areas, and service intensive properties, such as rent-to-own and transitional housing.   Every 12 to 18 months IEF sponsors an investment fund to invest or syndicate tax credit developments throughout Iowa.   Traditionally, the investment funds seek Iowa-based corporate investors.  

IEF is an affiliate of the Midwest Housing Equity Group, Inc. (MHEG), a 501(c)(3) nonprofit corporation.   MHEG staff provides IEF with underwriting, management, and compliance expertise based on extensive experience with syndication of tax credit properties.   MHEG also has over $110 million in current investments supporting more than 1,500 units of affordable housing in Nebraska, Iowa, and Kansas. 

For additional information, please contact Iowa Equity Fund at (515) 280-6000 or visit its Web site at   

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