Invest in CIC

Why Invest in CIC?

CIC has investments from financial institutions and other investors including pension funds and insurance companies. Currently, CIC has 34 investors that have pledged over $400 million through 2014 for CIC’s revolving loan pool.

Revolving Loan Pool

The capital which CIC uses to lend comes from a revolving loan pool. We use standard and innovative lending products that allow developers to borrow money from the pool to rehab multifamily apartment buildings into quality affordable housing. This arrangement allows our investors to manage risk while allowing them to invest in areas targeted for revitalization.

CIC serves as the intermediary between our investors and borrowers. Our revolving loan program has four phases:

1. Investors pledge funds
2. CIC issues mortgages
3. CIC sells notes to investors
4. Investors share in revenue stream

Investors pledge funds

Banks and other institutions join CIC’s revolving loan pool as investors. Each new or renewing investor signs a Pledge Agreement to commit to purchasing shares of future CIC note sales up to a specific cumulative dollar amount.

CIC issues mortgages

CIC issues mortgages to developers using a letter of credit secured by the Pledge Agreements from investors. CIC monitors the construction and project rent-up to ensure performance.

CIC sells notes to investors

Once a project has stabilized after rent-up, the loan is sold to investors. CIC bundles these mortgages into a single “note” and informs investors of a note sale.

Each investor is obligated by the Note Purchase Agreement to purchase its share of the note. An investor’s share of each note sale is proportional to its percentage share of the total outstanding pledge amounts.

Investor percentages are recalculated periodically as new investors join the pool or as current investors increase their pledges. Note sales occur on a regular basis, usually every few months. Each investor typically designates one member of its staff to be CIC’s “Note Sale Contact.”

Investors share in revenue stream

As borrowers repay their loans, CIC passes through to the investors their percentage shares of all the interest and principal received from borrowers, less a servicing fee. These are monthly payments to investors.

Because CIC is a revolving loan pool, payoffs of mortgages are recycled back into the investor’s outstanding pledge amount.