Frequently Asked Questions

Q. What is the Community Investment Portfolio (CIP)?
A. The CIP is a debt portfolio of high quality community investments that earn market rates of return, while delivering measurable social impacts to low and moderate-income communities.

Q. How long has the program been in existence?
A. The CIP was established in 2009 with a planned first round of investing in January of 2010. The portfolio is actively seeking additional investors.
 
Q. Is the CIP a direct lender? 
A. No, the CIP does not make direct loans or originate loan transactions.
 
Q. How does the CIP operate?
A. The portfolio operates by partnering with Community Development Financial Institutions (CDFIs) to make senior investment loans on a variety of income producing properties that provide credit enhancements through the subordinate co-investment of our CDFI financial partners. The CIP is not a direct lender or loan originator.

Q. What is a CDFI financial partner?
A. CDFI financial partners are generally larger or moderate sized CDFI banks, loan funds, or credit unions. A CDFI is a financial institution that serves the financial needs of historically underserved communities in the United States through mortgages, small business loans, and personal credit and bank accounts.

Our CDFI financial partners perform initial investment due diligence, provide ongoing servicing and monitoring of funded investments, and provide credit enhancements through a subordinate investment participation.

Q. What does the CIP invest in?
A. The CIP invests in:

• Multifamily affordable housing

• Charter schools

• Community facilities

• International microfinance

Q. What is the CIP’s investment criterion?
A. Projects are first evaluated to determine if the investment meets prudent underwriting guidelines. Next, the investment rate is evaluated in comparison to other investments of similar risk and return. Finally, the investment is analyzed to ensure the project has a measurable social benefit to low or moderate income individuals, families, or communities.

Q. What type of investment return does the CIP seek?
A. The CIP seeks a rate of return comparable to other investments fixed income and debt investment of similar structure, risk, and term.

Q. What type of social returns does the CIP seek?
A. The CIP seeks a measurable social return as determined by the number of affordable housing units created; the number of charter school seats for low and moderate income students, the number of low and moderate income residents served, and the number of jobs created  and businesses established in low and moderate income communities.

Q. Where does the CIP invest?
A. The portfolio seeks geographic diversity. No more than 50% of the total allocation to the portfolio will be invested in any one of the four major geographic regions (East, Midwest, South and West).

Q. How does an organization invest in the CIP?
A. Contact Brown English Capital Advisors at www.brownenglishcapadvisors.com or 773.598.8246