Homewise Community Investment Fund, Homewise, Inc.

The Community Investment Note is a promissory note issued by Homewise that helps promote successful home ownership in Santa Fe and Albuquerque, New Mexico.

The Notes allow investors to obtain a financial return while their invested dollars make positive social, economic, and environmental impacts in Northern New Mexico communities.

The Notes pay an interest rate of between 1% and 4% and can be purchased with terms of 1 to 15 years. Homewise intends to use the proceeds from the Community Investment Notes to develop new residential property, issue low-interest fixed-rate mortgages, and issue home improvement loans. The minimum investment for the Notes is $1,000, with minimum additional increments of $100.

Homewise has been engaged in our current business of generating loans since 1986 and has been developing and selling affordable housing since 1994. Much of the lending and development activities of Homewise have been financed by national foundations, government grants and local financial institutions. Homewise has never defaulted nor been delinquent in the repayment of any funds borrowed or invested in the organization.

Financial description

The Homewise business model produces a level of 100% operational self-sufficiency before grant income. The financial challenge for Homewise is securing capital for mortgage lending. The Homewise Community Investment Fund provides a diversified source of capital. Other sources include debt capital from banks and MRIs and PRIs from foundations and capital grants from the CDFI Fund and NeighborWorks America.
As of June 30, 2014, Homewise had
• Total assets of $73.2 million, supported by $35.7 million of total net assets and $37.5 million of total liabilities
• Gross loans receivable of $55.9 million, along with another $147.2 million in off-balance sheet loans serviced for others
• A delinquency rate of 1.7% for its total portfolio
• Property under development valued at $13.5 million
• A cumulative operating surplus of $10.8 million over the past 5 full fiscal years
• A current ratio of 1.5 and deployment of 88,7% of its lending a real estate resources
The most recent audited financial statements may be found at:
http://homewise.org/about-us/annual-reports-audits/