Cleveland Development Advisors Community Reinvestment Fund

Management Services: CDA-CRF provides management services to Cleveland Development Advisors, Inc. (CDA), an affiliate of the Organization. CDA is a real estate and business development finance organization that invests privately-funded capital and New Markets Tax Credit (NMTC) allocations into catalytic projects designed to advance economic and community development projects throughout Cleveland. CDA's investment funds include i) Cleveland Development Partnership II LP (CDP II), ii) Advance Cleveland Development Fund, LLC (ACDF), and iii) Cleveland New Markets Investment Fund II, LLC (CNMIF II) (collectively, CDA's Investment Funds). CDP II and ACDF provide a source of private sector financing for developers, owners and operators of significant real estate projects in Cleveland, Ohio and Cuyahoga County, Ohio, in order to promote development and advance community priorities. CNMIF II is a community development entity (CDE) certified by the U.S. Treasury's Community Development Financial Institutions Fund (CDFI Fund) that has received a total of $320 million in NMTC allocations since 2007. CNMIF II provides investment capital for low-income communities and low-income persons consistent with the NMTC Program and CDA's priorities. Since 1989, CDA's Investment Funds have invested more than $510 million in 167 projects that have resulted in over 7,700 new housing units and 13.9 million square feet of commercial space, which have generated over $4.2 billion of total development. Since 1989, CDA's Investment Funds have created over 8,300 permanent jobs and 9,000 construction jobs.The investments made by CDA's Investment Funds in 2022 include the following: Greater Cleveland Food Bank: CNMIF II provided $10 million of Federal NMTC allocation to the Greater Cleveland Food Bank for the new construction of a 197,000 SQF warehouse and distribution center in the Collinwood neighborhood to expand its capacity to store and distribute food to nearly 1,000 partner agencies across six Northeast Ohio counties. The $45.6 million project included an expanded production kitchen; larger freezer, cooler, cold vestibule and mobile pantry staging space; new and better equipment; and more efficient workspace for volunteers and staff. The organization will also pursue LEED Silver certification. The Greater Cleveland Food Bank is the stabilizing spine that helps to keep Northeast Ohioans upright when they are facing financial and food insecurity issues. The new facility will allow the Greater Cleveland Food Bank to increase its total distribution of food to 59.64 million pounds of food annually (a 30% increase) and reach more than 300,000 clients per year, including and increase of daily healthy meals prepared onsite from 4,000 to 8,000 annually. Additional federal NMTC allocation for the new facility was provided by Truist, the Development Fund of the Western Reserve and The Community Builders.Providence House: CNMIF II provided $9.5 million of Federal NMTC allocation to Providence House to finance a second crisis nursery location in the Buckeye neighborhood of Cleveland. Providence House, a nonprofit, is a crisis nursery that has provided emergency shelter and care to children and supportive services to their families since 1981 at their flagship location on the West Side of Cleveland. Over 98% of the families served by Providence House are below the federal poverty line, with most households earning less than $10,000 annually. Providence House responded to the growing need on the east side from their waitlist of children and families needing care on the east side of Cleveland, by constructing their second crisis nursey facility in the Buckeye neighborhood. The new location financed by CNMIF II will add 20 new beds in the nursery and wellness center; resulting in an annual increase in the number of children served annually by 240. The new facility will serve an additional 120 families in crisis and provide community resources to an additional 220 families.MAGNET: CNMIF II provided $5 million of federal NMTC allocation to finance the $18.7 million renovation of a vacant and former Cleveland Metropolitan School District (CMSD) school building in the Midtown neighborhood of Cleveland for MAGNET: The Manufacturing Advocacy and Growth Network new headquarters. MAGNET's mission is to drive innovation, growth and workforce development for Northeast Ohio's manufacturing economy. MAGNET's new 57,000 SQF headquarters will seek LEED certification, is a redevelopment of a vacant and blighted building with brownfield remediation and will add a publicly accessible green space through the STEM focused playground. The new headquarters is projected to create and retain 55 jobs. MAGNET's new headquarters also includes a new initiative to introduce STEM career opportunities to over 2,600 7th graders and 2,200 12th graders from the CMSD school district, that will result in an increase in annual job seekers to receive coaching, placement and training from 500 individuals to 1,000-3,000 individuals; as well as an increase in apprenticeships through the "Early College/Early Career Program" from 25 students to 75 students annually. PNC also provided federal NMTC allocation to the project.May Dugan: CNMIF II provided a $5 million federal NMTC allocation to finance the renovation and new addition of the May Dugan Center headquarters in the Ohio City neighborhood of Cleveland. The May Dugan Center is a social service organization that provides transformational care to families, children and others in need. the renovation and expansion of its headquarters will allow the nonprofit to update its outdated heating and electrical system, add non-existent air conditioning system to its headquarters, and increase the physical capacity to improve use of existing offices and common areas to create a more efficient, safe and welcoming environment in order to serve its clients. These updates increase the capacity to serve individuals from 6,000 per year to 7,500 per year through its programs. The core May Dugan Center Programs will be expanded to serve more individuals through the following programs: Trauma Recovery Program, Counseling and Community Services, Senior Program, Education and Resource Center, Moms First Program and Food Pantry and Clothing distribution center. The new Food Pantry will triple in size with a walk-in cooler and better loading/unloading capabilities to increase the number of meals served annually from 126,000 meals to 141,000 meals. The renovation and expansion of the headquarters will allow the Trauma Recovery Program to accommodate private therapy rooms and workspace for staff to increase the number of victims served annually from 485 clients to 710 clients annually. The Counseling and Community Services program will have two new offices and dedicated therapy room and will also increase the clients served annually from 485 clients to 710 clients.

Equity Investments & Grants:CDA-CRF assists in the revitalization of low-income communities through the support and facilitation of real estate and business development projects in Northeast Ohio. Specifically, CDA-CRF has equity investment in real estate financing organizations that promote community development in these communities. CDA-CRF also will utilize and leverage resources to provide grants to those organizations that support community development in the low-income communities. The Organization works closely with the officials of the Greater Cleveland Partnership (GCP), an Ohio non-profit corporation that is a 501(c)(6), and its subsidiaries, to identify development projects that will have a transformative impact on the City of Cleveland and Cuyahoga County.Grants: CDA-CRF received a $5 million grant from the JPMorgan Chase Foundation in 2019 to fund the three-year Opportunity CLE Transformation Neighborhood collaboration. CDA-CRF partnered with the statewide CDFI, Finance Fund Capital Corporation (FCAP) on the grant to provide flexible loans and real estate technical assistance to support diverse, healthy and economically stabilized communities in the three target Cleveland neighborhoods and immediately surrounding areas of Clark-Fulton, Glenville and Buckeye/Kinsman. CDA-CRF must use $1,250,000 of these grant proceeds to provide a sub-grant totaling $1,250,000 over the three-year grant period. As of December 31, 2022, CDA-CRF made sub-grants totaling $1,250,000 to FCAP for technical assistance related to the Opportunity CLE Transformation Neighborhood collaborative and had fulfilled its obligation in making all required sub-grants to FCAP. The total amount of sub-grants made in 2022 to FCAP for technical assistance totaled $277,500.In 2019, CDA-CRF leveraged its own resources along with grant funding received from Greater Cleveland Partnership (GCP) and Economic Growth Foundation (EGF), both affiliates of CDA-CRF, to provide a total of six (6) small business working capital loans totaling $145,000 to six (6) small businesses that were the winners of the Chain Reaction Collinwood Program in 2019. In 2019, CDA-CRF provided loans to the six (6) small business winners of this program that were chosen because of their intent to spur job creation, expansion, business growth and neighborhood revitalization in the Collinwood neighborhood of Cleveland, Ohio. The six (6) small business loans provided as part of the Chain Reaction Collinwood Program in 2019, were part of the greater collaboration of partners including Greater Cleveland Partnership's Council on Smaller Enterprises (COSE), Cleveland Neighborhood Progress, JumpStart, the City of Cleveland and Fox 8 that focused on Collinwood to promote and spur development in Collinwood neighborhood. The six (6) small business winners were Cleveland Brewery, Consult 2 Code, The Link, Mauve's All Natural Products, Six Shooter Coffee, and Sweet Bean Candies and all anticipated that they would open a store-front in Collinwood neighborhood. Of the six (6) winners of the Collinwood Chain Reaction Program, CDA-CRF provided small business loans to 3 minority businesses and 3 female owned businesses. During 2022, CDA-CRF converted the outstanding principal and interest balances of each of these loans, which totaled $187,900. While each of these six (6) businesses, maintained operations through the COVID-19 pandemic, each business was impacted by the COVID-19 pandemic with slowed growth and ability to open a physical presence in the Collinwood neighborhood. CDA-CRF's ability to convert the loans to grants in 2022, ensured that each business, either minority owned or female owned, would be in the best position to continue operations and alleviate some of the costs of operating a store-front in the neighborhood and generate equity into each business.In 2022, CDA-CRF provided a $25,000 grant to Northern Real Estate Urban Ventures LLC (NREUV), an emerging minority, woman-led developer expanding into Cleveland. CDA-CRF provided the grant to NREUV to help finance predevelopment legal costs associated with the negotiation and purchase agreement from the owner for the acquisition of the MLK Plaza at 9300 Wade Park in the Hough neighborhood of Cleveland. NREUV intent is to develop the nearly vacant and blighted plaza into a mixed-use redevelopment including affordable housing, market rate housing and commercial and community space in Hough.Equity Investments: CDA-CRF is the 99.9% owner of CNMIF II, a certified CDE under the NMTC Program investing in low-income communities and low-income persons. To date, CNMIF II has received a total of $320 million of Federal NMTC allocation and $28.5 million of Ohio NMTC allocations, and in turn invested into 34 projects totaling over $946 million in development costs. These projects have provided rehabilitation and construction of over 3.3 million square feet of commercial space and 942 housing units with 25% of those units qualifying as affordable under the NMTC Program, creating over 4,500 construction jobs and 4,300 permanent jobs. CDA-CRF is a 4.3% limited partner in CDP II, which to date, has made 92 investments by providing over $155 million in financing into 76 projects totaling over $2.1 billion in development costs. The financing of these projects has provided construction and rehabilitation of over 5.6 million square feet in commercial space and over 3,100 housing units; creating nearly 2,300 permanent jobs and over 3,000 construction jobs. CDA-CRF is a 3.77% Class A Investor in ACDF, which to date, has provided over $77.8 million in financing into 29 projects totaling over $679 million in development costs. The financing of these projects has provided construction and rehabilitation of over 2.5 million in square feet commercial and residential space and over 2,000 housing units; creating over 90 permanent jobs and 550 construction jobs. CDA-CRF is a 31.75% Class B Investor in Opportunity CLE Loan Fund (OCLF), as of December 31, 2022. During 2022, CDA-CRF continued to work on the capitalization of this $40 million loan fund that will provide capital to support transformative, strategic and catalytic projects that provide a positive social and economic return in targeted low-income communities across Northeast Ohio with a focus in Cuyahoga County, Ohio. CDA-CRF also serves as the managing member of OCLF.

Loans:The Organization began lending activity in 2017 utilizing its cash resources generated from successfully managing CDA Investment Funds and leveraging those funds to create greater impact. CDA-CRF became a certified Community Development Financial Institution (CDFI) by the CDFI Fund in 2018, with a focus on most distressed neighborhoods in the City of Cleveland and surrounding neighborhoods; but can also serve Cuyahoga County and its surrounding counties. CDA-CRF is refining its lending priorities to match gaps in the greater Cleveland lending landscape to create sustainable loan products with the ability to advance Cleveland by supporting neighborhood redevelopment and small business growth through collaboration and inclusivity. The focus of the organization's lending activity is on real estate development including community facilities, job creation projects and acquisition and predevelopment and does include small business loans focusing on real-estate like financing for tenant improvements and furniture, fixtures and equipment (FF&E). The highlights of the loans made by CDA-CRF in 2022 include:Providence House Capital Campaign Bridge Loan: CDA-CRF provided a $1.942 million loan Providence House to help bridge future capital campaign pledges that were secured at the time construction financing closed of the second crisis nursery location in the Buckeye neighborhood of Cleveland (February 17, 2022). CDA-CRF provided a capital campaign bridge loan for future capital campaign pledges in hand that were a critical and crucial piece necessary for Providence House to close on the overall construction financing of the $9.5 million project. Providence House responded to the needs of their families served as they saw a continued need of their waitlist of children needing care coming from the east side of Cleveland, by constructing their second crisis nursey facility on the East Side of Cleveland in the Buckeye neighborhood. The capital campaign bridge loan was critical in securing and closing on the construction financing of $9.5 million, including CNMIF II $9.5 million federal NMTC allocation. The new location in the Buckeye neighborhood will add 20 new beds in the nursery and wellness center; resulting in an increase in the number of children served annually by 240; will serve an additional 120 families in crisis and provide community resources to an additional 220 families. May Dugan Capital Campaign Bridge Loan: CDA-CRF provided a $2.531 million loan to the May Dugan Center to help bridge future capital campaign pledges that were secured at the time construction financing closed on the renovation and expansion of its headquarters in the Ohio City neighborhood of Cleveland (October 6, 2022). CDA-CRF provided a capital campaign bridge loan that were a critical and crucial piece necessary the May Dugan Center to close on the overall construction financing for the renovation and expansion of its headquarters totaling over $7.0 million. The capital campaign bridge loan was critical in securing and closing on the financing for the renovation and expansion of its existing headquarters. The core May Dugan Center Programs will be expanded to serve more individuals through the following programs: Trauma Recovery Program, Counseling and Community Services, Senior Program, Education and Resource Center, Moms First Program and Food Pantry and Clothing distribution center.Blanket Mills Construction Bridge Loan: CDA-CRF provided a $2.6 million loan to the Blanket Mills mixed-use project located in the Clark-Fulton neighborhood of Cleveland. CDA-CRF provided critical construction bridge financing to ensure that the historic renovation of the former vacant Blanket Mills Building moved forward to be able to deliver a 60-unit affordable housing project in 2023 and to provide additional time needed in order to secure separate financing for the 31,400 SQF of commercial space on the 1st floor of the building. The Blanket Mills building was once a bustling commercial enterprise, churning out wool horse blankets and carriage robes more than 110 years ago. The blighted property was vacant for almost three decades and an eye-sore for the Clark-Fulton neighborhood until the Levin Group bought the building with a vision to complete a historic adaptive reuse of the building into mixed-use project including 60 affordable housing units and commercial space on the 1st floor with a tenant serving the community.

Development Services:The experience obtained through the Opportunity CLE Neighborhood collaborative which began in 2019, highlighted significant gaps in Cleveland's development ecosystem, especially for emerging developers of color. In 2021, CDA-CRF focused on strengthening partnerships with community development corporations, developers, and other stakeholders to initiate a city-wide collaborative to advance equitable development by promote emerging and underserved developers in Cleveland. In 2022, CDA-CRF focused building its own development services platform, known as CDA's Advancing Equitable Development Program (AEDP), that will promote equitable development and solidified four (4) main components of the AEDP Program and began to apply for funding to support those four (4) components; which includes 1) training and education through the Cleveland Equitable Development Initiative (CLE EDI); 2) providing financial and staff support to the Equitable Development Ecosystem Collaborative (EDEC); 3) providing financial support to emerging developers by CDA-CRF directly paying for professional consultants to advise the emerging developers on their projects through CDA-CRF's Developer In Residence (DIR) program and 4) providing predevelopment and acquisition access to capital to emerging developers through CDA-CRF specific grant and loan capital programs. During 2022, CDA-CRF solidified two development service focused on partnerships with other local based organizations to help finance the Advancing Equitable Development Program, which will enhance and connect minority developers of color with additional resources in Cleveland, Ohio. Additionally, CDA-CRF continued to focus and expand fundraising to be able to provide loan and grant products focused on emerging and minority developers. As of December 31, 2022, the following development services programs had been solidified with fundraising implemented and in-progress to be able to advance the initiatives going forward in 2023. CLE Equitable Development Initiative (CLE EDI): During 2022, CDA-CRF continued to work closely with Village Capital Corporation (VCC), a local Cleveland based CDFI, and Capital Impact Partners (CIP), a national CDFI, to develop and refine a Cleveland based training program based off of CIP's national model of the Equitable Development Initiative. CDA-CRF's work in 2022, which involved the close collaboration and input of VCC, began to shape, evolve and refine the CLE EDI initiative and curriculum that focused on an initial cohort and learning series geared towards educating and training new and diverse community-based developers to build capacity for emerging minority developers in Cleveland. As of December 31, 2022, the intent of this collaborative was to secure and solidify a curriculum tailored to the needs of the Cleveland community and launch a CLE EDI Program and inaugural cohort in 2023. As of December 31, 2022, CDA-CRF secured a total of $370,000 in grant contributions in 2022 from Bank of America Foundation, KeyBank Foundation and Huntington Foundation to help financially support the contract being negotiated with CIP to launch a CLE EDI cohort in 2023. Equitable Development Ecosystem Collaborative: In 2022, CDA-CRF focused on bringing local partners with a Cleveland presence in the community together in order to begin the formation of the Equitable Development Ecosystem Collaborative (EDEC). The EDEC is a community collaboration of partners including, but not limited to, Village Capital Corporation (VCC), City of Cleveland, Cuyahoga County Land Bank, and other CDFIs with a Cleveland office, that are working towards a common goal of solidifying and engaging a 3rd party facilitator in 2023 to help the community partners on a comprehensive plan of coordinating activity among services providers to support emerging developers of color.Developer in Residency: CDA-CRF applied for various grant programs that would provide funding starting in 2023 to specifically guide and mentor emerging and minority developers with their projects directly and through 3rd parties with development expertise and be paid for by CDA-CRF. In 2022, CDA-CRF continued to focus providing DIR funding for the following projects that began prior to 2022: - Allen Estates: Frontline Development Group, a minority-owned, female-led real estate development team, began in 2021 to leverage the recent development momentum in the Hough and Midtown neighborhoods to advance its multi-phase Allen Estates project. The ambitious plan includes over 200 units of mixed income housing and commercial space. The development is centered around East 65th Street, near the historic League Park, and nearby recent investments by Dave's Markets, University Hospitals, and The Cleveland Foundation. In 2021 and 2022, CDA-CRF engaged Focus Planning Inc. to provide development advisory services to the Frontline team including critical path, design, financing and budget proforma support.- Centro Villa 25: Since 2019, CDA-CRF has been an early supporter of the La Villa Hispana initiative underway in the Clark-Fulton neighborhood. CDA-CRF's involvement began with financing to the Northeast Ohio Hispanic Business Center in 2019 to acquire the vacant building for the future site of Centro Villa 25. Centro Villa 25 is an adaptive reuse vision to provide 20 micro retail spaces, a commercial kitchen, and space for neighborhood-serving organizations. CDA-CRF has remained engaged since then by providing ongoing technical assistance for the project including construction planning, financial proformas, budgeting and other advisory services. CDA-CRF Access to Capital: CDA-CRF applied for various loan and grant programs that would provide funding starting in 2023 for CDA-CRF to specifically provide capital funding through both loans and grants to emerging and minority developers.