Community Reinvestment Fund, USA

Access to Capital Provides Economic Opportunity

Bringing Scale and Sustainability to Community Development Finance

Federal Reserve Bank of Boston

November 4, 2005

Presented by: Frank Altman

President and CEO

What is CRF?

A national non-profit financial services organization based in Minneapolis, MN

Provides capital to communities by purchasing economic development and affordable housing loans from community development lenders

Helped establish New Markets Tax Credit as a member of the NMTC Coalition

CRF’s Mission

To transform the community development finance system by accessing capital markets on behalf of local development lenders to enable them to increase their impact on the lives of people and communities.

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We Work in Two Distinct Markets

“We talk to the Birkenstocks and to the Wing Tips.”

Track Record

$457 million provided to 114 lending partners in 25 states, District of Columbia.

More than 1,600 loans in 39 states.

10,594 total jobs, created/retained, 2,164 of which were provided to minorities or women.

8,733 total housing units. Loss ratio is less than 0.5% Delinquencies currently 0.39%

INVESTORS INCLUDE:

Prudential MetLife and MetLife BankNorthwestern MutualAxa-EquitableDomini Social InvestmentsCalvert Social Investment FundCRA Fund AdvisorsGeneral Board of Pensions and Health Benefits of the United Methodist ChurchF.B. Heron FoundationMennonite Mutual Aid Society Insurance Co.U.S. BankWells FargoWashington MutualState Farm BankCitibankMacArthur FoundationFannie Mae Foundation…and many others.

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7Location of Lending Partners

8Location of Borrowers

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Sustained Investment Yields High ImpactLake Street Corridor, Minneapolis

Two Strategies for Raising Capital

Securitization New Markets Tax Credit

How CRF Leverages Funds

80% market-rate investments

18% social-rateinvestments

2% charitable contributions

Community Development Finance Milestones Reached by CRF

$130 million in Rated Debt Securities Affordable Housing Debt Offering - $84 million

total offering, S&P ‘AAA’ rating for $63.5 million. CRF 17 – First rated economic development debt

offering, $46.1 million total, ($26 million AAA, $7 million A, $6 million BB), 17% subordinated capital (versus 23% in CRF 16).

New Markets Tax Credits $412.5 million New Markets Tax Credit allocation

for Business Loans in Low-Income Communities.

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Details on CRF USA’sRecent Rated Economic

Development Security

$46.1 million total security•$26.1 million in Class A Notes

Rated by Standard & Poor’s Privately Placed

Rated Tranches from “AAA” to “BB”

Community Reinvestment FundBecomes More Complex

CommunityReinvestment Fund

National New MarketsTax Credit Fund Inc.

Business LoanConduit LLC

CommercialLending LLC

Sub-allocates toand Controls

Makes loans to

Sponsor of

Local CDE

QualifiedBusiness

QualifiedBusiness

Makes loans to

Purchases loans from

Local CDE

QualifiedBusiness

QualifiedBusiness

Makes loans to

Purchases loans from

Challenges

•CRF’s ability to grow limited by capital constraint

•Develop a larger market for the unrated, supporting class of Notes

•Warehousing Capacity is limited but growing

•Become more efficient

•Never lose sight of the MISSION

Our Vision

A multi-billion dollar market financed by a mix of life insurance companies, banks, pension funds and mutual funds.

Increasing liquidity for investors

Volume sufficient to support trade in the public markets

Better lives for people and stronger communities throughout the nation

Capital for Communities – Opportunities for People

If you would like more information, please contact us.

Frank AltmanCommunity Reinvestment Fund

801 Nicollet Mall Suite 1700WMinneapolis, MN 55402

Frank@crfusa.com612-338-3050 phone

612-338-3236 faxWebsite: www.crfusa.com

Community Reinvestment Fund, USA

Capital for Communities

Opportunities for People