Our 2020 Vision for Communities 2015 Impact Highlights:

$131 MILLION 154,000 1,050 EDUCATION: HEALTH CARE: HEALTHY FOOD: CLOSED PEOPLE JOBS 4,500 87,000 61,000 LOANS SERVED CREATED STUDENTS PATIENTS CUSTOMERS

Through our efforts, we will work to address systemic poverty, build equitable opportunities, create healthy communities and ensure inclusive growth. Building a Foundation of Equity, Opportunity and Inclusiveness

strong financial position, scale the Green House and learn how Michele nation of communities report will provide you deep partnerships and model for dignified Reynolds, who, along built on a foundation with our initial roadmap. innovative product long-term care and the with her neighbors in of equity, opportunity development. We Cornerstone Partnership Washington D.C.’s Ward and inclusiveness. It is an I look forward to provided ongoing to expand affordable 5, now has access to appropriate North Star continuing Terry leadership in the health housing, we saw those quality care. You will for our ambitious agenda. Simonette’s legacy and care space, helped initiatives become self- also experience the am excited to join my a number of charter sufficient, independent kindness of Meals on Through our efforts, colleagues in taking the schools expand their organizations. Wheels volunteers we will work to address bold steps necessary educational offerings in Texas who bring systemic poverty, build to find new ways to and saw several of our In the accompanying hot meals to Kajl, an equitable opportunities, address the social and Ellis Carr projects come online pages, you’ll see the accomplished chef no create healthy economic justice issues President and CEO across . We impact of our work longer able to prepare communities and ensure that impact underserved also launched two new throughout the year all his own meals. inclusive growth. communities. I sincerely As Capital Impact’s new lending initiatives that first hand when you hope that you join CEO, I am incredibly will expand access meet Yesenia Franco, As impressed as I This will require us to us in shaping a new excited to take this to healthy foods and a proud mother whose am with the impact expand our lending tomorrow. opportunity to both support age-friendly daughter has already we had in 2015, I’m and implement new look back at 2015 and communities. chosen her college— equally excited about capitalization efforts that to expound on our new even though she is what lies ahead. This broaden our reach. We five-year vision to 2020. At the same time, still an elementary year marks the launch also plan to incubate, two of our long-time school student at of our new five-year advocate and scale new Over the past year, programs saw fresh Equitas Academy. We’ll strategy. Core to that and promising ideas we continued to build beginnings. After take you on a tour effort is working with through our policy to upon the organization’s working to build and of Unity Health Care all of you to create a practice work. This Financing That Supports Connections

we celebrate in the people aged 50 and the Reinvestment present as we look CREATING SOCIAL IMPACT up. With Age Strong, Fund to utilize the ahead to new levels from Coast to Coast an investment as small CDFI Bond Guarantee of accomplishment. 2015 Closed Loans Capital Impact Oces as $20 that could Program. This program This lending volume is be quietly earning benefits a KIPP school a source of strength interest in a bank is in Camden, New Jersey as it supports our instead put to work that constructed a organization financially constructing housing new school for more while simultaneously and providing access than 1,000 pre-K reinforcing communities to health care for very through 8th grade with increased access to low-income seniors in students. This school critical housing, services rural Colorado. That provides high-quality Scott Sporte and employment investment is also educational options for Chief Lending Officer opportunities. helping to eliminate neighborhoods whose a Philadelphia food traditional public At Capital Impact The new desert so that closer schools are closing. Partners we put money Good Food Fund uses proximity to food and to work, focusing our financing to increase community services In Detroit, projects in efforts on the best ways equitable access to of locally grown fruits Calvert Foundation, enables more seniors the Woodward Corridor to use dollars to achieve fresh, healthy food. and vegetables as well AARP and AARP to remain in their Investment Fund and powerful outcomes. The Fund focuses on as entrepreneurs and Foundation, connects homes as they age. Detroit Neighborhoods reducing food deserts employers. the burgeoning Fund began opening Our lending work at in cities like Detroit world of impact We have also put their doors to people Capital Impact Partners and Flint as well as Our new Age investing with high our shoulder to the from a mix of income in 2015 increased more rural areas north of the Strong Investment impact organizations wheel in partnership levels by using our than 17 percent over Mackinac Bridge. It also Fund, developed in to provide needed with the Low Income lending as a tool to 2014—a success that supports producers partnership with the services to low-income Investment Fund and transform vacant, Our new lending strategy intends to make money work harder, achieving even deeper levels of impact in and across communities.

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$36.7M connections. A loan to much in 2015 and H a community health know that our Our loans support the Development $5.0M center provides a new diligent effort point of access for will lead to even connections that are LENDING ACTIVITY BY SECTOR primary care. It also more in the years fundamental to strong I n

allows a senior to use to come. We are s t communities the services of that grateful to our e t r n nearby center to be partners and thank c e $131 MILLION o n m healthier and remain you for joining us as t 2015 Closed Loans: 17% Year-over-Year Increase n s at home longer. A we look ahead to 2020. e c e loan to a retail grocer t v e In those accomplishments increases that retailer’s d c blighted buildings into S ti and their powerful purchases of locally er ly vibrant homes near vic ata transportation and impact on communities grown produce that in es C services for existing and as we simultaneously turn creates jobs and new Detroit residents. look ahead to the economic opportunity. next five years. Our Financing to a new The following sections new lending strategy apartment building in of this report celebrate intends to make money Detroit builds safer, STRATEGY 2020 STRATEGY ROADMAP

Implement lending efforts that support connections STRATEGIC and impact across multiple PILLARS sectors simultaneously

Advance equitable growth and access through local, state and federal advocacy

Establish “Policy to Practice” capability that supports ADDRESS CREATE BUILD HEALTHY PROMOTE innovation within our business sectors as well as SYSTEMIC POVERTY EQUITY COMMUNITIES INCLUSIVE GROWTH across the CDFI Industry Effect systemic change Support equitable Foster connections Build diverse, mixed- at scale—from social access to quality and social supports income communities Convene cross-sector leaders, establish partnerships and systems to government services and economic that strengthen the that promote economic expand technical assistance programs—so that all opportunity regardless links between health, mobility and empower programs that scale people have paths out of race, ethnicity, education, housing and individuals to break the innovative practices of poverty gender, income or opportunity that help barriers to success Strengthen financial position geography people and communities through expanded lending, thrive together capital diversification and impact investing strategies Health Care

Our 2020 Focus: Support health care delivery innovations that are focused on prevention and whole person well-being

Programs:  Age Strong  CPCA Ventures Loan Fund  Healthier California Fund

We are confident that we’re going to get quality care, and that is so important.

Witness how Unity’s new health center Michele Reynolds Witness how Unity’sis transforming new health lives center at www. is transformingcapitalimpact lives.org/stories at www.capitalimpact.org/stories Patient, Unity Health Care, Washington D.C. Education

Our 2020 Focus: Create more high-quality schools that deliver excellent educational outcomes for low-income students

Programs:  CDFI Bond Guarantee Program  New Markets Tax Credit Program

We are not negotiating if you are going to college, it’s which college you are going to.

Malka Borrego Meet the (future college) students of Executive Director, Equitas Academy Equitas Academy at www.capitalimpact.org/stories Healthy Food

Our 2020 Focus: Increase access to fresh and healthy food by expanding our work in food distribution, processing and production while maintaining support for neighborhood retailers

Programs:  Age Strong  California FreshWorks Fund  Michigan Good Food Fund  National Cooperative Grocers Loan Fund

This store makes me feel like we are not forgotten.

Stroll the aisles of Imperial Fresh Market’s healthy offerings Geraldine at www.capitalimpact.org/stories Customer, Imperial Fresh Market Co-Operative Development

Our 2020 Focus: Develop food, worker and housing co-ops through expanded national technical assistance programs, peer networks and capital delivery

Programs:  Co-op Innovation Award  National Cooperative Grocers Loan Fund

This idea has potential to gain a momentum of its own and become self-generating and sustaining.

Melissa Hoover See co-op innovation In action Executive Director, Democracy at Work Institute at www.capitalimpact.org/blog Place-Based Revitalization

Our 2020 Focus: Help revitalize and stabilize markets in Detroit’s investment- ready neighborhoods by supporting equitable mixed-use, mixed-income development

Programs:  Detroit Neighborhoods Fund  Woodward Corridor Investment Fund

We hope Detroit may ultimately prove to be a model city for inclusive and equitable economic development.

What does inclusive growth look like? Bradford Frost Witness how Unity’sWatch new thehealth video center at www. is transformingcapitalimpact lives.org/blog at www.capitalimpact.org/stories Director, Detroit Program, Capital Impact Partners Affordable Housing

Our 2020 Focus: Foster housing efforts that offer opportunities to build assets while preserving long-term affordability

Programs:  Age Strong  Detroit Neighborhoods Fund  Woodward Corridor Investment Fund

The co-op model of ownership is an excellent solution to a basic problem.

Paul Bradley Join Paul’s affordable housing crusade President, ROC USA at www.capitalimpactwww.capitalimpact.org/stories at lives .org/blogtransforming is center health new Unity’s how Witness Dignified Aging

Our 2020 Focus: Strengthen the ability of older adults to age in their community by applying an aging lens across all of our lending programs

Program:  Age Strong

This program has made all the difference in my life.

Experience how this program is delivering food and friends Bettye Witness how Unity’sto newthose health in need center at www. is transformingcapitalimpact lives.org/stories at www.capitalimpact.org/stories Recipient, Tarrant County Meals on Wheels Program 2015 Growth Highlights:

$ $22 0.4% 17 20% MILLION Delinquency MILLION INCREASE 11% Loan Ratio Unrestricted In Unrestricted Portfolio Net Asset Net Assets Growth Growth

As we begin to implement our 2020 Strategy, we will continue efforts to strengthen our financial position by bringing our lending more on balance sheet, actively managing expenses and implementing capitalization strategies to improve margins. Expanding and Diversifying our Capital Base

This growth was House and Cornerstone building on our Federal that underserved matched with Partnership programs Home Loan Bank of communities need to continued strong and the accompanied Atlanta membership to thrive. Ultimately, we credit performance, as grant revenue that was scale access to flexible believe these efforts will our delinquency rate used to fund those capital. Also, we will help us in expanding was just 0.4 percent. activities. explore ways to attract our reach and impact Once again, our focus impact investors as a by 2020. on financial strength Now, as we begin to means to bolster our and social impact was implement our 2020 social impact while rewarded with AERIS’ Strategy, we will allowing for the ability Carolyn Bauer highest possible rating continue efforts to to provide relevant Chief Risk Officer of AAA+1. This honor strengthen our financial returns to investors. pleases us greatly. position by bringing Driven by another our lending more on We have seen incredible year of strong lending, Top-line revenue balance sheet, actively success with these Capital Impact ended continued to grow as managing expenses types of programs 2015 with a solid well. Net income rose and implementing that raise capital for financial position. by $11 million—a year- capitalization strategies international projects. over-year increase to improve margins. We intend to harness The organization’s of 213 percent. Net that same interest overall portfolio assets saw an expected We will continue to domestically as a means increased by $22 decline as a result of develop and diversify of creating access to million or 11 percent. launching our Green our capital base by the critical services OUR PARTNERS

FUNDERS & DONORS INVESTORS PARTNERS AARP AARP Foundation Alzheimer’s Association Detroit Future City Midtown Detroit, Inc. Pioneer Network Archstone Foundation Bank of America American Health Democracy at Work Institute National Association for Reinvestment Fund Care Association County Community and Appleton Foundation California District of Columbia, ROC USA Economic Development Community Foundation American Medical Office on Aging Bill and Melinda Rural Community Directors Association National Association Gates Foundation Calvert Social Investment EdTec Assistance Corporation Foundation Arkansas Division of Aging of Housing and Cooperative Development ExED & Adult Services Redevelopment Officials Seattle Investment Fund Foundation Deutsche Bank Fannie Mae Self-Help Credit Union Beneficial State Bank National Association of Local First 5 Los Angeles Dignity Health Federal Housing Finance Housing Finance Agencies The Eden Alternative California Department Ford Foundation Federal Home Loan Bank Administration of Health Services National Association The Partnership for Atlanta Cooperative Harry and Jeanette Federal Reserve Bank of Realtors Working Families California Charter Weinberg Foundation JPMorgan Chase of San Francisco Schools Association National Community University of Detroit Mercy JPMorgan Chase Foundation Living Cities Catalyst Fund Flagstar Bank Land Trust Network California Primary U.S. Department of Housing Kaiser Foundation Hospital Max M. & Marjorie S. Fisher Care Association Freddie Mac National Co-op Grocers and Urban Development Fund for Community Benefit Foundation California School Grantmakers for National Cooperative Bank, NA U.S. Federation of Programs at the East Bay Metropolitan Life Finance Authority Effective Organizations Worker Community Foundation National Cooperative Merrill Lynch Capital Link Habitat for Humanity Business Association Urban Institute Kaiser Foundation Hospitals International California Southern Region Morgan Stanley Center for Community Progress National Council of State Wespath Division of the Housing Partnership Network Housing Agencies General Board of Pension and Kresge Foundation Northern Trust Centers for Medicare Health Benefits of The United and Medicaid Services Harvard University Initiative National Fair Housing Alliance Koret Foundation Opportunity Finance Network Methodist Church for Responsible Investment CFED National Family Living Cities PNC Bank ICA Group, Inc. Caregivers Association Chi Partners The Mousetrap Foundation Prudential Social Insurance IFF National Housing Conference Program City of Detroit National Housing Institute & Center for Housing Policy Impact Community Capital Rasmuson Foundation Clearinghouse CDFI Nationwide Foundation National Housing Institute Innovative Housing Institute Self-Help Credit Union CoMetrics Ohio Community National League of Cities Invest Detroit Development Loan Fund The California Endowment Community Development NeighborWorks America Association of Detroit Kirwan Institute Ohio Community U.S. Bank Community Nonprofit Finance Fund Development Finance Fund Development Corporation Community Health Leading Age Center Capital Fund Northern California Salesforce.com Foundation U.S. Department of Treasury Liberty Bank Community Loan Fund CDFI Fund Community Reinvestment Fund Social Innovation Fund | Local Initiatives Support Northern Initiatives Corporation for National U.S. Department of Treasury | Data Driven Detroit Corporation and Community Service Small Business Lending Fund Ohio Administration on Aging Detroit CDFI Coalition Low Income Investment Fund SCAN Foundation W.K. Kellogg Foundation Partners for the Common Good Detroit Development Fund Michigan Economic The Robert Wood Bank Development Corporation PolicyLink Detroit Economic Johnson Foundation Growth Corporation Michigan Lending Solutions PHI National U.S. Department of Education CAPITAL IMPACT PARTNERS AND BOARD OF SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION DIRECTORS 2015 (As of December 31st) and 2014 THOMAS BLEDSOE MARY ANN ROTHMAN Assets ($ Millions) 2015 2014

President and Executive Director Cash and cash equivalents—unrestricted...... $21,896,663...... $22,973,465 Chief Executive Officer The Council of Cash and cash equivalents—restricted...... 35,776,052...... 39,260,027 Housing Partnership Network New York Cooperatives Accounts and interest receivable...... 2,123,122...... 1,990,401 & Condominiums Contributions receivable...... 852,811...... 12,296,545 JANIS HERSHKOWITZ Investments...... 4,700,914...... 4,754,555 Investment in joint venture...... 2,660,888...... 2,660,793 President & CHARLES E. SNYDER Loans receivable...... 180,574,691...... 164,914,807 Chief Executive Officer President and Less: allowance for loan losses...... -9,374,669...... -9,177,796 PRL, Inc. Chief Executive Officer Loans receivable, net...... 171,200,022...... 155,737,011 National Loans receivable - subsidiaries...... 41,854,452...... 35,421,220 Cooperative Bank ELI KENNEDY Other assets...... 2,728,996...... 2,715,301 Chief Executive Officer DAN VARNER Total assets $283,793,920 $277,809,318 Level Playing Field Institute Chief Executive Officer Liabilities and Net Assets Liabilities ROSEMARY MAHONEY Excellent Schools Detroit Accounts payable and accrued expenses...... $4,045,327...... $4,028,078 ...... 32,800,000...... 24,950,000 Board Vice Chair Revolving line of credit Notes payable...... 61,250,300...... 67,637,569 Senior Advisor THOMAS W. WALSH Subordinated debt...... 10,718,000...... 8,218,000 CoMetrics Assurance Partner (Retired) Bond loan payable...... 5,859,705 Pricewaterhouse Notes payable—subsidiaries...... 41,291,448...... 35,436,546 RAY MONCRIEF Coopers LLP Total liabilities 155,964,780 140,270,193 Former Executive Vice President and Chief JUDY ZIEWACZ Net Assets Operating Officer President and Unrestricted...... 101,244,487...... 84,554,160 Kentucky Highlands Chief Executive Officer Temporarily restricted...... 25,097,178...... 51,497,490 Investment Corporation National Cooperative Permanently restricted...... 1,487,475...... 1,487,475 Business Association DANA PANCRAZI (NCBA CLUSA) Total net assets 127,829,140 137,539,125 Board Chair Total liabilities and net assets $283,793,920 $277,809,318 Vice President, Capital Markets The F.B. Heron Foundation Full financials available at: www.capitalimpact.org/annualreport/2015.php#Financials Farewell, But My Commitment Continues

Terry Simonette development finance helped to guide us in The more than stakeholders. We have be farther back in the sector, includes our endeavor. In my 1,000 Community an ongoing appetite ranks of this army in As I think about my partners who have mind, they are our Development Financial for investment in the future, but for sure, 32 years with Capital worked shoulder- real heroes. Institutions in the innovations that both I will continue to be a Impact Partners, I am to-shoulder with us; country come in all drive our organization proud member of this overwhelmed when I investors whose capital And finally, let me shapes and sizes. to excel and also movement and support consider the thousands participation helped single out our hundreds Capital Impact Partners provide important it in every way that I can. of stakeholders us stand up a strategy of staff members. These holds a unique niche leadership and impetus that have made that continues to tireless individuals because of our unusual for our industry. Thank you for the contributions to our generate high impact have dedicated their beginnings with a opportunity to know work of helping people outcomes; foundations commitment and credit culture and I count myself and work with all of you. and communities whose contributions leadership to our track record that has exceptionally fortunate It has meant more to me across the country increase our capacity industry. They have been built on financial to have been part of than you can imagine. reach their highest and enable transactions breathed life into our rigor and discipline. this group of people potential. that otherwise would collective vision of We hold a continuing across the country who not be possible; and creating a nation of commitment to continue to stand up This army of people our many board communities built cooperatives, and other for social justice and and organizations, all members whose on a foundation of forms of democratic who imagines a world part of the ongoing and selfless contribution of equity, opportunity and ownership, and all that that enables all of us to thriving community their time and talent inclusiveness. they achieve for their succeed. I certainly will I count myself exceptionally fortunate to have been part of this group of people across the country who continue to stand up for social justice and who imagine a world that enables all of us to succeed. TRANSFORMING UNDERSERVED COMMUNITIES INTO STRONG, VIBRANT PLACES OF OPPORTUNITY

www.capitalimpact.org

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Program Incubation  Strategic Financing  Capacity Building  Public Policy