Alliance Community Development Trust (ACDT)

The Trust purchases tax-exempt housing revenue bonds secured by mortgages, and borrowers use the proceeds to acquire low- and moderate- income apartment properties which they intend to rehab and preserve with new, lower rate, long-term permanent debt within 36 months – at which time the Trust’s bonds are repaid.

The Trust is made available to investors in two series: (1) CRA Series I - open to any accredited investor seeking investment credit under the United States Community Reinvestment Act (CRA), and (2) ACDT – Series II - open to any accredited investor seeking highly competitive returns that are exempt from U.S. Federal income taxes and not subject to the Alternative Minimum Tax (“AMT”). Each Trust will sell up to an aggregate of $100 million Trust Certificates of a given Series, which will bear a fixed rate of interest rate above a Treasury or LIBOR index set at delivery.

Financial description

The Trust’s’ business is focused on providing short-term/bridge debt financing through the purchase of tax-exempt multi-family revenue bonds. Virtually all of ACDT’s borrowers will be not-for-profit corporations, since they have the ability to issue tax-exempt bonds that are exempt from U.S. income taxes and they receive preferential treatment in competing for Low Income Housing Tax Credits (LIHTCs).
Alliance Fund Management, LLC ("AFM") exclusively represents Alliance Community Development Trust – CRA Series 1 and ACDT Series II ("ACDT" or "Trust"), both of which directly acquire short- to intermediate-term tax-exempt multifamily housing bonds. The bonds are issued (through an appropriate issuer) by qualified 501(c)(3) organizations to finance the acquisition of existing affordable housing properties.
As a “fixed-income” investment the Trusts provides investors with attractive risk-adjusted cash returns which are exempt from U.S. Federal income taxes and are not subject to the Alternative Minimum Tax (“AMT”). The Trust is made available to investors in two series: (1) CRA Series I open to any accredited investor seeking risk-adjusted, tax-exempt earnings as well as investment (and innovative) credit under the United States Community Reinvestment Act (CRA), and (2) ACDT – Series II open to any accredited, qualified investor seeking risk-adjusted, highly competitive returns that are exempt from U.S. Federal income taxes and not subject to the AMT.