This report covers activities in the eighth year of operations for the Living Cities Catalyst Fund.

As of June 30, 2016, the Catalyst Fund had commitments of $30.2 million from ten investors, a decrease in $475,000 from repayments to investors. In fiscal year 2016, we originated $1.5 million bringing our total cumulative lending since inception to $41.7 million, which has sparked initiatives with total funding of over $959 million.

Key developments of fiscal year 2016, from July 2015 through June 2016, include:

  • New Investments: We closed one new investment – a $1.5 million increase in credit to the Neighborhood Development Center (NeDC), the lender leading small business investment through the Twin Cities Integration Initiative. The Living Cities Catalyst Fund loan was the first time NeDC used debt to grow capital available for lending. The increased line demonstrates NeDC’s ability to deploy capital and meet the new obligations from debt financing including structured covenant compliance and reporting.
  • In addition, the Credit Committee approved a $1.3 million loan to NewCorp, Inc., a small business lender and technical assistance provider in the New Orleans Integration Initiative. The loan was approved in June 2016 and we expect to close by December 2016. The loan will provide working capital to disadvantaged business enterprises (DBEs) which have been awarded publicly funded construction contracts. With this final investment from the Living Cities Catalyst Fund, Pool B will reach 100% utilization.
  • Increased Deployment: Over the past year, we have deployed an additional $4.6 million, bringing the total outstanding balance to $21.6 million, an increase from $18.0 million in 2015.
  • Loan Repayments: Our original loans to Reinvestment Fund (originated 2009) and Bay Area Transit Oriented Affordable Housing (BATOAH) Fund continued repayments in 2016. In fiscal year 2016, Living Cities received $1 million in repayments. Both loans repay as the underlying project loans repay.
  • Investor Repayments: In fiscal year 2016, we repaid $475 thousand to investors in Program A.

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