Investors Overview
CAHEC's equity funds have proven a successful investment vehicle for corporations seeking tax credits. Our funds reflect a diversity of investment types: new construction, acquisition and rehabilitation of existing properties, and adaptive re-use developments. We also invest in historic projects that are rehabilitated for mixed-use purposes, and in 2009 we received a $30 million allocation of New Markets Tax Credits.
CAHEC is known for an exceptional track record of equity investments in projects that have typically been ignored by large for-profit sponsors and syndicators. As a result, we have acquired the expertise, experience, and relationships that enhance our ability to underwrite, close, and asset manage smaller projects (50 or fewer units), projects developed by nonprofits, projects located in non-urban areas, and adaptive re-use projects. For investors with a predominantly rural presence, CAHEC's market specialization in closing smaller deals (under $3M in net equity) sets us apart in the tax credit industry.
We are careful to protect the interests of our investors by admitting to our funds only those properties that make good economic sense. We are scrupulous in our underwriting practices: each potential CAHEC project undergoes a rigorous examination by an in-house Technical Review Committee before final presentation to the Board of Directors' Investment Committee. Once projects are underway, CAHEC's nationally certified asset management and compliance team closely monitors their performance to ensure that funds meet or exceed the projected rate of return.
Keeping our investors informed is also important. Investors work directly with CAHEC's Fund Management Department. The Fund Management Department provides financial modeling and forecasting, manages debt instruments and equity investments, performs monthly financial accounting, and produces investor reports (audits, tax returns, benefits schedules, IRR calculations). The department also assists banks with CRA investments.
Compounding our collaboration with our investor partners is our passion for the company's mission-driven philosophy. Our aim is to better meet the needs of our customers and to ensure that our investments' long-range impact is both sustainable and a catalyst for further community improvements. To this end, our Community Programs division coordinates six on-site programs, offers a grant for part-time supportive service coordination, and administers a variety of partnerships with other agencies to benefit residents of properties we help finance. At CAHEC we not only believe in what we do; we foster healthy neighborhoods.
Suitability Standards for Qualified Investors
People interested in making an investment in one of CAHEC's equity funds must qualify as an "accredited investor" within the meaning of Rule 501(a) of the Securities Act of 1933. Accredited investors under the Securities Act include, among other persons, most banks and insurance companies, and any corporation or partnership not formed for the specific purpose of acquiring the securities being offered that has total assets of at least $5,000,000.