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Article Archives: North Carolina

Supporting Affordable Housing through Tax Credit Syndication
Community Affordable Housing Equity Corp (CAHEC) is a 501(c)(3) nonprofit low-income housing tax credit syndicator serving Alabama, the District of Columbia, Florida, Georgia, Kentucky, Maryland, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia. CAHEC works to create and maintain affordable rental and ownership housing in the areas it serves. Since its creation in 1992, CAHEC has developed more than 7,300 units of affordable housing. CAHEC also provides a number of supportive programs designed to assist the residents of the developments it has helped to finance.

As a tax credit syndicator, CAHEC structures equity funds using investors' capital. CAHEC's most recent fund is the South Carolina Preservation Fund II LP (SCPF II). SCPF II is a $32 million equity fund designed to preserve and renovate a portfolio of older, multifamily housing properties in South Carolina. The targeted portfolio includes 41 properties with a total of 1,548 units. Although all investments in SCPF II were fully subscribed in 2008, banks can invest in other CAHEC equity funds as they are developed. To learn more, visit their Web site or e-mail Dana Boole or call (919) 788-1803.
[Community Developments Investments, Spring 2009]

Small Loans, Big Returns
Ways to Work (WtW) is a nonprofit, community development financial institution that helps lower-income people. WtW is designed to help borrowers attain financial independence and advance economically by having money to purchase dependable used cars to get to work or school. Since 1996, WtW has originated nearly 12,000 loans for more than $31 million and the average auto loan amounts to an average $3,400. Results of a 2006 WtW evaluation indicate that borrowers reported an average increase of 41 percent in their take-home pay. In addition, 67 percent of WtW borrowers report that they have used conventional financial services subsequent to receiving their WtW loans.

Headquartered in Milwaukee, WtW makes its loans from 43 offices in 21 states: California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wisconsin.

WtW offices are located in social service agencies affiliated with the Alliance of Children and Families (ACF). ACF agencies screen and provide financial education to borrowers and service the loans. WtW local offices provide financial education to more than three persons for every individual who receives a loan. Investors in WtW include several national foundations, the Community Development Financial Institution Fund of the U.S. Treasury Department, local United Way offices, and financial institutions. Banks can be involved by investing in the national WtW loan fund, by referring to local WtW offices prospective borrowers who do not meet conventional credit criteria, by participating in local WtW loan committees, and by providing grants and in-kind donations to WtW.

For more information, contact President Jeff Faulkner at (414) 359-1448 ext. 2, e-mail him, or visit his Web site.

[Community Developments Investments, Fall 2008]

Small Business Investment Opportunity
Plexus Fund I is a Small Business Association-licensed “debenture” small business investment company (SBIC) formed in 2005 with offices in Charlotte and Raleigh, North Carolina. Plexus Fund I’s five principals worked together since 1995 at a predecessor investment fund, making Plexus Fund I a first-time fund managed by experienced industry professionals with a proven track record of providing not only capital but also strategic advice and counsel to its portfolio clients. Plexus provides patient capital to lower middle market companies experiencing rapid growth, to private companies making acquisitions, and to support strong management teams participating in recapitalization transactions. Plexus typically invests up to $5 million per transaction and looks for companies with a sustainable competitive advantage led by strong management teams. Clients generate more than $10 million in revenue and $1 million in cash flow. Plexus will participate in financing transactions of up to $25 million as a non-control investor.

While Plexus Fund I is closed to new investors, the principals plan to accept investors into Plexus Fund II in the near term. Fund II is also expected to be a licensed debenture SBIC with the same CRA credit opportunity for banks, with limited partner investment commitments expected to range from $500,000 to $5 million. A bank’s investment in a Plexus Fund may be a “qualified investment” for CRA purposes.

Call Bob Anders at (704) 927-6246 or visit Plexus.

[Published in News from the Districts, Community Developments, Spring 2008]