Cleveland Development Advisors Community Reinvestment Fund Inc

TO PROMOTE COMMUNITY DEVELOPMENT AND REVITALIZATION BY SUPPORTING AND PROVIDING INVESTMENT CAPITAL FOR LOW-INCOME COMMUNITIES AND LOW-INCOME PERSONS IN NORTHEAST OHIO TO CREATE SUSTAINABLE NEIGHBORHOODS AND COMMUNITIES THROUGH NEIGHBORHOOD REDEVELOPMENT AND SMALL BUSINESS GROWTH THROUGH COLLABORATION AND INCLUSIVITY WITH PUBLIC, PRIVATE AND NOT-FOR-PROFIT PARTNERS.

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 $250 MILLION (TO DATE) IN NMTC ALLOCATIONS SINCE 2007. CNMIF II PROVIDES INVESTMENT CAPITAL FOR LOW-INCOME COMMUNITIES AND LOW-INCOME PERSONS CONSISTENT WITH THE NMTC PROGRAM AND ALSO CDA'S PRIORITIES.SINCE 1989, CDA'S INVESTMENT FUNDS HAVE INVESTED MORE THAN $474 MILLION IN OVER 158 PROJECTS THAT HAVE RESULTED IN OVER 7,700 NEW HOUSING UNITS AND 13.6 MILLION SQUARE FEET OF COMMERCIAL SPACE, WHICH HAVE GENERATED OVER $4.1 BILLION OF TOTAL DEVELOPMENT. THE INVESTMENTS MADE BY CDA'S INVESTMENT FUNDS IN 2021 INCLUDE THE FOLLOWING: TREO: CDA PROVIDED MAVREK DEVELOPMENT WITH A $3.05 MILLION SUBORDINATE LOAN FOR THE NEW CONSTRUCTION OF THE PROJECT KNOWN AS TREO. TREO IS TRANSFORMING A BLIGHTED SITE INTO A MIXED-USE PROJECT THAT WILL ACT AS A BRIDGE BETWEEN CLEVELAND'S TREMONT AND OHIO CITY NEIGHBORHOODS. CONSTRUCTION BEGAN IN 2021 ON THE $38.5 MILLION DEVELOPMENT WHICH INCLUDES 171 APARTMENT UNITS, 3,160 SQUARE FEET OF FIRST FLOOR COMMERCIAL SPACE, AND SUPPORTING PARKING. THE PROJECT SPONSOR COMMITTED BEST EFFORTS TO DESIGNATE 20% OF THE UNITS AS WORKFORCE HOUSING. TREO WILL SERVE AS A CATALYST FOR FURTHER DEVELOPMENT ALONG THE STRATEGIC WEST 25TH STREET CORRIDOR AND PULL THE POSITIVE MOMENTUM AND INVESTMENT SOUTH. EAST 4TH STREET TENANT IMPROVEMENTS: CDA PROVIDED $1.26 MILLION LOAN TO PROVIDE CAPITAL FOR RESTAURANT AND AMENITY IMPROVEMENTS ON EAST 4TH STREET IN DOWNTOWN CLEVELAND. IN 2020, THE PANDEMIC CREATED CHALLENGES FOR THE HOSPITALITY INDUSTRY, AND TWO OF EAST 4TH STREET LONGTIME NATIONALLY RECOGNIZED RESTAURANTS CLOSED. THE CDA TENANT IMPROVEMENT LOAN MADE TO THE MARON FAMILY, OWNERS OF THE BUILDINGS ON EAST 4TH STREET, PROVIDED CAPITAL TO RENOVATE THE VACANT SPACE AND TO ATTRACT TWO NEW RESTAURANTS, CORDELIA AND INDIE, WHICH BOTH OPENED IN 2022. CDA'S INVESTMENT HELPED TO SUPPORT THE EAST 4TH STREET DISTRICT, WHICH HAS BEEN A VITAL PLACE IN DOWNTOWN AND ONE OF THE MOST POPULAR DESTINATIONS IN THE CITY. VOSS INDUSTRIES SITE: CDA PROVIDED A $1.5 MILLION SUBORDINATE LOAN TO MRN, LTD. TO PROVIDE FINANCING FOR THE ACQUISITION OF THE 244,000 SF COMPLEX VACATED BY VOSS INDUSTRIES IN THE OHIO CITY NEIGHBORHOOD. THE VISION OF MRN IS AN ADAPTIVE REUSE OF THE HISTORIC BUILDING TO CREATE A MIXED-USE DESTINATION THAT BUILDS ON OHIO CITY'S MOMENTUM.

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 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 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 PROJECTS CDA-CRF FINANCED IN 2021 INCLUDE:WESTERN RESERVE LAND CONSERVANCY: CDA-CRF PROVIDED A $4.5 MILLION LOAN TO WESTERN RESERVE LAND CONSERVANCY (WRLC) TO FINANCE THE ACQUISITION OF LAKEFRONT PROPERTY IN CLEVELAND'S COLLINWOOD NEIGHBORHOOD, WHICH ADVANCES ITS GOAL OF SUPPORTING TRANSFORMATIVE PROJECTS IN CORE NEIGHBORHOODS. AFTER DECADES OF COMMUNITY DISCUSSION AROUND THE POTENTIAL FOR THIS LAKEFRONT PROPERTY, WRLC WAS ABLE TO ACQUIRE THE EUCLID BEACH MOBILE HOME PARK (EBMHP) IN A ONCE-IN-A-GENERATION OPPORTUNITY. THE 28-ACRE SITE IS LOCATED BETWEEN THREE LAKEFRONT PARKS MANAGED BY THE CLEVELAND METROPARKS EUCLID BEACH, VILLA ANGELA, AND WILDWOOD, ALONG WITH THE ADJACENT CLEVELAND PUBLIC LIBRARY PROPERTY TO THE EAST. WRLC'S PURCHASE PROTECTS THIS STRATEGIC PARCEL FROM DEVELOPMENT WHILE A COMMUNITY PROCESS HELPS DETERMINE ITS FUTURE USE. WRLC AND OTHER KEY PARTNERS INCLUDING THE CITY OF CLEVELAND, GREATER COLLINWOOD DEVELOPMENT CORPORATION, CLEVELAND NEIGHBORHOOD PROGRESS AND THE CLEVELAND METROPARKS ARE BEGINNING A LONG COMMUNITY ENGAGEMENT PROCESS IN 2022 TO DETERMINE THE BEST OUTCOME.WAVERLY & OAK: CDA-CRF PROVIDED A $2.4 MILLION SUBORDINATE LOAN TO PROVIDE FINANCING FOR THE CONSTRUCTION OF WAVERLY & OAK PROJECT IN CLEVELAND'S DETROIT SHOREWAY NEIGHBORHOOD. THE $47 MILLION PROJECT IS LED BY BOND STREET GROUP AND WILL INTRODUCE 126 APARTMENTS, 17,000 SQUARE FEET OF GROUND LEVEL COMMERCIAL SPACE, AND APPROXIMATELY 140 PARKING SPACES IN THE GORDON SQUARE ARTS DISTRICT. THIS PROJECT IS THE FIRST NEW CONSTRUCTION MULTI-STORY, MIXED-USE DEVELOPMENT IN CLEVELAND'S DETROIT SHOREWAY NEIGHBORHOOD SINCE THE GORDON SQUARE ARCADE AND CAPITAL THEATRE COMPLEX OPENED IN 1922. THIS PROJECT HELPS CONTINUE THE MOMENTUM OF CLEVELAND'S NEAR WEST SIDE AND ADVANCES CDA'S GOAL OF SUPPORTING CATALYTIC PROJECTS IN THE CITY'S CORE NEIGHBORHOODS. CRITTENDEN COURT: CDA-CRF PROVIDED A $3.4 MILLION SUBORDINATE LOAN TO SNAVELY GROUP TO FINANCE THE $27.8 MILLION ACQUISITION AND RENOVATION OF THE 209-UNIT CRITTENDEN COURT APARTMENT COMPLEX IN CLEVELAND'S WAREHOUSE DISTRICT. CRITTENDEN COURT WAS BUILT IN 1995 AND THE BUILDING IMPROVEMENTS INCLUDE UPGRADED AND RENOVATED APARTMENT UNITS, NEW AND UPGRADED AMENITIES FOR TENANTS, AND STRATEGIC EXTERIOR ENHANCEMENTS. THE SNAVELY GROUP COMMITTED TO BEST EFFORTS TO DESIGNATE 60% OF THE UNITS AS WORKFORCE HOUSING, WHICH WILL ENSURE THE PROPERTY CONTINUES TO PROVIDE A MEANINGFUL SOURCE OF WORKFORCE HOUSING IN A DOWNTOWN MARKET WITH RISING RENTS. LEAD SAFE HOME FUND: CDA-CRF MADE A $500,000 INVESTMENT TO CHN HOUSING CAPITAL (CHN) TO SUPPORT THE LEAD SAFE HOME FUND. THE LEAD SAFE CLEVELAND COALITION (COALITION) IS A PUBLIC- PRIVATE PARTNERSHIP FOUNDED TO ADDRESS THE CITY OF CLEVELAND'S LEAD POISONING CRISIS THROUGH A COMPREHENSIVE, PREVENTATIVE, AND LONG-TERM APPROACH. ONE OF THE COALITION'S KEY STRATEGIES IS THE LEAD SAVE HOME FUND, WHICH HAS RAISED APPROXIMATELY $20 MILLION TO DATE WITH PUBLIC, PRIVATE, AND PHILANTHROPIC INVESTMENTS, AND WAS ESTABLISHED TO ENABLE PROPERTY OWNERS TO MAKE LEAD INTERIM CONTROL IMPROVEMENTS IN RENTAL AND OWNER-OCCUPIED PROPERTIES. THE LEAD SAFE HOME FUND IS MANAGED BY CHN, WHO WILL PROVIDE AND ADMINISTER AFFORDABLE LOANS FOR THE REMEDIATION AND IMPROVEMENTS TO REDUCE UNSAFE LEAD LEVELS IN RENTAL AND OWNED HOUSING STOCK IN CLEVELAND.

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 COUNTYGRANTS: 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. DURING 2021, CDA-CRF MADE SUB-GRANT TOTALING $452,500 TO FCAP FOR TECHNICAL ASSISTANCE RELATED TO THE OPPORTUNITY CLE TRANSFORMATION NEIGHBORHOOD COLLABORATIVE.IN 2021, CDA-CRF PROVIDED A $25,000 GRANT TO UBIZ, AN AFFILIATE OF THE URBAN LEAGUE OF GREATER CLEVELAND. THE GRANT PROVIDED MATCHING RESOURCES REQUIRED BY FEDERAL RESOURCES UBIZ RECEIVED TO HELP TO ESTABLISH A SMALL BUSINESS MINORITY LOAN POOL TO HELP GROW MINORITY BUSINESSES. CDA-CRF COLLABORATED WITH ITS AFFILIATE, GREATER CLEVELAND PARTNERSHIP, TO MAXIMIZE AND LEVERAGE BOTH ENTITIES RESOURCES TO PROVIDE MATCHING FUNDS NEEDED BY UBIZ.EQUITY INVESTMENTS: CDA-CRF IS THE 99.9% OF CNMIF II, A CERTIFIED CDE UNDER THE NMTC PROGRAM INVESTING IN LOW-INCOME COMMUNITIES AND LOW-INCOME PERSONS. AS OF DECEMBER 31, 2021, CNMIF II HAS RECEIVED A TOTAL OF $250 MILLION OF FEDERAL NMTC ALLOCATION AND $20 MILLION OF OHIO NMTC ALLOCATIONS INTO 31 PROJECTS TOTALING $838 MILLION IN DEVELOPMENT COSTS. THESE PROJECTS HAVE PROVIDED REHABILITATION AND CONSTRUCTION OF OVER 2.9 MILLION SQUARE FEET OF COMMERCIAL SPACE AND 942 HOUSING UNITS WITH 25% OF THOSE UNITS QUALIFYING AS AFFORDABLE UNDER THE NMTC PROGRAM, CREATING OVER 3,800 CONSTRUCTION JOBS AND 3,700 PERMANENT JOBS. CDA-CRF IS A 4.3% LIMITED PARTNER IN CDP II, WHICH AS OF DECEMBER 31, 2021, HAS MADE 86 INVESTMENTS BY PROVIDING OVER $151 MILLION IN FINANCING INTO 73 PROJECTS TOTALING OVER $2.08 BILLION IN DEVELOPMENT COSTS. THE FINANCING OF THESE PROJECTS HAS PROVIDED CONSTRUCTION AND REHABILITATION OF OVER 5.4 MILLION IN COMMERCIAL SPACE AND NEARLY 3,100 HOUSING UNITS; CREATING OVER 1,900 PERMANENT JOBS AND 2,900 CONSTRUCTION JOBS. CDA-CRF IS A 3.77% CLASS A INVESTOR IN ACDF, WHICH AS OF DECEMBER 31, 2021, HAS PROVIDED OVER $75.2 MILLION IN FINANCING INTO 27 PROJECTS TOTALING OVER $674 MILLION IN DEVELOPMENT COSTS. THE FINANCING OF THESE PROJECTS HAS PROVIDED CONSTRUCTION AND REHABILITATION OF OVER 2.5 MILLION IN COMMERCIAL AND RESIDENTIAL SPACE AND OVER 2,000 HOUSING UNITS; CREATING OVER 90 PERMANENT JOBS AND 500 CONSTRUCTION JOBS. CDA-CRF IS A 31.75% CLASS B INVESTOR IN OPPORTUNITY CLE LOAN FUND (OCLF), AS OF DECEMBER 31, 2021. DURING 2021, CDA-CRF CONTINUED TO WORK ON THE CAPITALIZATION OF THIS $50 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.

DEVELOPMENT SERVICES:THROUGH THE WORK AND EXPERIENCE WITH 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. ADDITIONALLY, CDA-CRF FOCUSED BUILDING ITS OWN DEVELOPMENT SERVICES PLATFORM, KNOWN AS CDA'S ADVANCING EQUITABLE DEVELOPMENT PROGRAM (AEDP), THAT WILL PROMOTE EQUITABLE DEVELOPMENT. DURING 2021, CDA-CRF IDENTIFIED TWO DEVELOPMENT SERVICE FOCUSED AREAS FOR ITS ADVANCING EQUITABLE DEVELOPMENT PROGRAM, WHICH WILL ENHANCE AND EXPAND LOAN AND GRANT PRODUCTS FOCUSED ON EMERGING AND MINORITY DEVELOPERS, AND INCLUDES: EDUCATION AND TECHNICAL ASSISTANCE: EDUCATE AND TRAIN NEW AND DIVERSE COMMUNITY-BASED DEVELOPERS TO BUILD CAPACITY FOR EMERGING MINORITY DEVELOPERS.DEVELOPER IN RESIDENCY: GUIDE AND MENTOR EMERGING AND MINORITY DEVELOPERS WITH THEIR PROJECTS DIRECTLY AND THROUGH 3RD PARTIES WITH DEVELOPMENT EXPERTISE. IN 2021, CDA-CRF SUPPORTED TWO EMERGING AND MINORITY DEVELOPERS ON THE FOLLOWING PROJECTS THROUGH ITS DEVELOPER IN RESIDENCY PROGRAM: ALLEN ESTATES: FRONTLINE DEVELOPMENT GROUP, A MINORITY-OWNED, FEMALE-LED REAL ESTATE DEVELOPMENT TEAM, HAS BEEN WORKING 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. 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: 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 THE ADAPTIVE REUSE CAN BE REALIZED TO PROVIDE 22 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.