NDC HOUSING AND ECONOMIC DEVELOPMENT CORPORATION GROUP RETURN
ONE BATTERY PARK PLAZA NO 710, NEW YORK, NY 10004 www.ndconline.org

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Organizations Filed Purposes: NDC HOUSING AND ECONOMIC DEVELOPMENT CORPORATION WAS ORGANIZED FOR THE FOLLOWING CHARITABLE PURPOSES: TO CONSTRUCT NEW AND SUPPORT EXISTING SAFE AND ADEQUATE LOW-INCOME HOUSING FOR DISADVANTAGED PERSONS; THEREBY ASSISTING GENERALLY IN THE ALLEVIATION (CONT. ON SCHEDULE O) OF HOUSING SHORTAGES THROUGHOUT THE UNITED STATES; TO STIMULATE ECONOMIC DEVELOPMENT IN ECONOMICALLY DISTRESSED AREAS OF THE COUNTRY; AND TO ASSIST IN THE ERECTION AND MAINTENANCE OF PUBLIC BUILDINGS, MONUMENTS OR FACILITIES; TO LESSEN THE BURDENS OF GOVERNMENT; AND TO PROMOTE SOCIAL WELFARE.

NDC HOUSING & ECONOMIC DEVELOPMENT CORPORATION'S MISSION IS TO CREATE (CONT. ON SCHEDULE O) QUALITY AFFORDABLE HOUSING FOR THE DISADVANTAGED, TO STIMULATE ECONOMIC DEVELOPMENT AND CREATE JOBS IN LOW INCOME AREAS AND TO ERECT PUBLIC BUILDINGS TO LESSEN THE BURDENS OF GOVERNMENT AND PROMOTE SOCIAL WELFARE.

LESSENING THE BURDENS OF GOVERNMENT:TO ASSIST IN THE ERECTION AND MAINTENANCE OF PUBLIC BUILDINGS, MONUMENTS, FACILITIES, OR WORKS TO LESSEN THE BURDEN OF GOVERNMENT AND TO PROMOTE SOCIAL WELFARE.HEDC ALSO PARTNERS WITH UNITS OF LOCAL GOVERNMENT TO ERECT AND MAINTAIN PUBLIC BUILDINGS, MONUMENTS, FACILITIES, AND WORKS TO "LESSEN THE BURDEN OF GOVERNMENT AND TO PROMOTE SOCIAL WELFARE. IN TOTAL, HEDC HAS DEVELOPED AND FINANCED MORE THAN THIRTY-ONE PROPERTIES COSTING MORE THAN $2.5 BILLION ON BEHALF OF LOCAL GOVERNMENT INCLUDING PUBLIC BUILDINGS AND CITY HALLS, EDUCATIONAL AND MEDICAL RESEARCH FACILITIES, STUDENT HOUSING, PARKING FACILITIES AND OTHER (CONT. ON SCHEDULE O) PUBLIC INFRASTRUCTURE. DURING 2019, HEDC UNDERTOOK THE FOLLOWING PROJECTS UNDER THE MISSION OF LESSENING THE BURDENS OF GOVERNMENT. STATE OF WASHINGTON DATA PROCESSING CENTER (FYI)- OLYMPIA, WA IN 2008, HEDC THROUGH A SPECIAL PURPOSE ENTITY FINANCED AND BUILT A FACILITY FOR THE STATE OF WASHINGTON THAT HOUSES ADMINISTRATIVE OFFICES AND THE STATES DATA PROCESSING CENTER. THE PROJECT CONSISTED OF TWO BUILDINGS THAT ARE OCCUPIED BY STATE AGENCIES. BUILDING ONE IS A FIVE-STORY 202,000 SQUARE FOOT OFFICE BUILDING THAT HOUSES VARIOUS STATE OFFICES AND THE BUILDING TWO IS A TWO STORY 167,000 SQUARE FOOT FACILITY THAT HOUSES THE STATE'S DEPARTMENT OF INFORMATION SERVICES. THE TOTAL COST OF THE PROJECT WAS $376,000,000 AND WAS FINANCED WITH 82-26 TAX EXEMPT BONDS.IN 2019, HEDC REFUNDED THE BONDS TO LOWER THE INTEREST RATE AND THEREBY SIGNIFICANTLY REDUCED THE RENT PAID TO FYI BY THE STATE OF WASHINGTON. COMMUNITY DEVELOPMENT PROPERTIES SCRANTON- SCRANTON, PAIN 2016 HEDC WORKING WITH THE CITY OF SCRANTON SUCCESSFULLY NEGOTIATED A LONG-TERM CONCESSION/LEASE FOR THE CITY OF SCRANTON PARKING SYSTEM, WHICH INCLUDED: 1) FIVE PARKING GARAGES CONTAINING 2,659 SPACES AND APPROXIMATELY 36,000 SF OF RETAIL; 2) 1,479 METERED PARKING SPACES; AND 3) 550 PUBLICLY-LEASED PARKING SPACES. HEDC ASSUMED RESPONSIBILITY FOR THE LEASE, OPERATION, MAINTENANCE AND CAPITAL REPAIR OF THE ENTIRETY OF THE PUBLIC PARKING SYSTEM FOR FORTY YEARS THROUGH ONE OF ITS' SUBSIDIARY CORPORATIONS CDP SCRANTON (CDPS). THE CONSIDERATION AMOUNT GENERATED BY A CONCESSIONAIRE/LEASE AGREEMENT WAS USED BY THE CITY, IN COMBINATION WITH PROCEEDS FROM A GENERAL OBLIGATION ISSUANCE, REDEEM ALL OUTSTANDING DEBT ASSOCIATED WITH THE PARKING AUTHORITY. THIS ALLOWED THE CITY TO BE FREE OF THE ON-GOING LIABILITY AND HAS FREED UP MUNICIPAL REVENUES FOR OTHER CRITICAL NEEDS AND OBLIGATIONS. IN 2017 CDPS CONTINUED ITS WORK WITH THE CITY TO UPGRADE THE GARAGES WITH ENHANCED LIGHTING AND TO IDENTIFY A NEW ON STREET PARKING SYSTEM. IN 2018, CDPS STABILIZED THE FORMERLY BANKRUPT PARKING SYSTEM WHICH IS NOW OPERATING AT A 1.4:1 DEBT COVERAGE RATIO. ADDITIONALLY, CDPS CONTRACTED WITH A FIRM TO DESIGN A NEW AUTOMATED ON-STREET REVENUE COLLECTION SYSTEM THAT WHEN INSTALLED, WILL IMPROVE REVENUE COLLECTION, OPERATING EFFICIENCY AND THE OVERALL CUSTOMER PARKING EXPERIENCE. THE NEW ON-STREET REVENUE CONTROL SYSTEM WAS INSTALLED IN 2019. IN ADDITION, THE CONTRACTS FOR GARAGE RECONSTRUCTION WERE LET AND WORK COMMENCED ON THE DEMOLITION AND IMPROVEMENT OF SELECTED GARAGES. THESE EFFORTS WILL PROVE TO FURTHER THE CITY'S PLAN TO CONTINUE THE REVITALIZATION OF DOWNTOWN SCRANTON.

STIMULATE ECONOMIC DEVELOPMENT IN ECONOMICALLY DEPRESSED AREAS:TO INITIATE AND CARRY OUT ACTIVITIES TO STIMULATE ECONOMIC DEVELOPMENT IN THE ECONOMICALLY DEPRESSED AREAS OF THE US. IN PARTICULAR, TO UNDERTAKE ACTIVITIES THAT: - RELIEVE POVERTY AND LESSEN NEIGHBORHOOD TENSION CAUSED BY A LACK OF JOBS IN DETERIORATED AND DEPRESSED AREAS BY PROVIDING TRAINING OPPORTUNITIES FOR THE UNEMPLOYED AND CREATING JOB OPPORTUNITIES FOR DISADVANTAGED GROUPS. - COMBAT COMMUNITY DETERIORATION AND ELIMINATE BLIGHT BY UNDERTAKING ACTIVITIES THAT STIMULATE THE ESTABLISHMENT OF NEW BUSINESSES AMONG DISADVANTAGED GROUPS AND WHICH REHABILITATE AND REVIVE EXISTING BUSINESSES OPERATED BY DISADVANTAGED GROUPS. (CONT. ON SCHEDULE O)HEDC WORKS WITH NONPROFIT ORGANIZATIONS AND SERVICE PROVIDERS AND UNITS OF LOCAL GOVERNMENT TO STIMULATE ECONOMIC DEVELOPMENT IN THE ECONOMICALLY DEPRESSED NEIGHBORHOODS ACROSS THE NATION. WORKING THROUGH THE NEW MARKETS TAX CREDIT PROGRAM AND WITH OTHER FINANCING, HEDC CREATES EMPLOYMENT AND ENTREPRENEURIAL OPPORTUNITIES FOR DISADVANTAGED GROUPS AND INDIVIDUALS, COMBATS COMMUNITY DETERIORATION, AND ELIMINATES SLUM AND BLIGHT THROUGH NEW INVESTMENT IN LOW INCOME COMMUNITIES TO REHABILITATE AND REVITALIZE NEIGHBORHOODS. UNDER THE NEW MARKETS TAX CREDIT (NMTC) PROGRAM, HEDC HAS SPONSORED 94 PROJECTS TOTALING OVER $1.7 BILLION OF NEW INVESTMENT, CREATED OVER 9,000 PERMANENT JOBS FOR DISADVANTAGED INDIVIDUALS, AND BROUGHT BADLY NEEDED GOODS AND SERVICES TO LOW INCOME COMMUNITIES ACROSS AMERICA. IN 2018, HEDC RECEIVED A $50 MILLION ALLOCATION OF NEW MARKETS TAX CREDITS AND AIDED THE FOLLOWING PROJECTS IN 2019: PM FOUNDATION DBA URBAN COMMUNITY SCHOOL CLEVELAND, OH IN 2019, HEDC INVESTED $5 MILLION IN NEW MARKET TAX CREDIT QEI ALONG WITH $9 MILLION FROM PARTICIPATING CDE'S TO PARTIALLY FUND THE ADDITION TO THE URBAN COMMUNITY SCHOOL, A PRIVATE K THROUGH 8 SCHOOL LOCATED IN A LOW-INCOME NEIGHBORHOOD IN CLEVELAND'S NEAR WEST SIDE. THE SCHOOL SERVES 580 STUDENTS, 75% OF WHICH COME FROM FAMILIES WHOSE INCOMES ARE BELOW THE FEDERAL POVERTY LINE. THE ADDITION CONTAINS 35,535 SQUARE FEET FOR CLASSROOMS, OFFICES AND A MEDICAL CLINIC OPERATED BY METRO HEALTH AND EXPERIENCES 84,000 PATIENT VISITS A YEAR. ADDITIONALLY, THE CLEVELAND FOOD BANK WILL OCCUPY 115 SQUARE FEET FOR A FOOD ANNEX AND RECREATION AND STUDENT MENTORING WILL BE ADDED IN 10,000 SQUARE FEET THROUGH A PARTNERSHIP WITH URBAN SQUASH. THE TOTAL PROJECT COST WAS $17,139,949. ROCKY BOY HEALTH CENTER BOX ELDER, MT THE CHIPPEWA CREE TRIBE'S SOVEREIGN LAND IN BOX ELDER, SITUATED IN A REMOTE AREA OF THE STATE OF MONTANA. THE TRIBE'S NEED FOR MEDICAL SERVICES HAS GROW OVER THE YEARS AND THEIR CAPACITY TO PROVIDE QUALITY MEDICAL SERVICES TO ITS MEMBERS WAS HAMPERED BY THE LIMITATIONS EXTANT IN THEIR 43,000 SQUARE FOOT OUTDATED AND CLINICALLY SUBSTANDARD FACILITY. WITH THE HELP OF THE FEDERAL GOVERNMENT AND INDIAN HEALTH SERVICES, THEY DEVELOPED A PLAN TO BUILD, EQUIP AND STAFF A NEW 93,000 SQUARE FOOT STATE OF THE ART MEDICAL FACILITY THAT WILL PROVIDE SERVICES CURRENTLY ONLY AVAILABLE BY A FOUR- HOUR CAR RIDE. THE NEW FACILITY WILL SERVE OVER 1,200 MEMBERS OF THE TRIBE AND THE INFRASTRUCTURE FINANCED THROUGH THIS PROJECT WILL PROVIDE POTABLE WATER TO 300 LOW-INCOME HOMES LOCATED WITHIN THE MIDDLE DRY FORK DEVELOPMENT ZONE. HEDC PROVIDED $7.9 MILLION IN NMTC QEI FOR THIS $44.7 MILLION PROJECT. NDC COMMUNITY IMPACT LOAN FUND (MCI) CLEVELAND, OH AND BROWARD COUNTY, FL THE CAPITAL ACCESS FUND (CAF), RENAMED NDC MULTI-CULTURAL INVESTMENT, IS AN OUTGROWTH OF A FORMER STRATEGIC ALLIANCE BETWEEN NDC CILF, THE NATIONAL URBAN LEAGUE, LOCAL URBAN LEAGUE CHAPTERS AND MORGAN STANLEY TO CREATE ACCESS TO CAPITAL FOR MINORITY COMMUNITIES WHO FACE BARRIERS TO ECONOMIC OPPORTUNITY AND PARTICIPATION IN THE AMERICAN ECONOMY. BUILT UPON A BASE OF FLEXIBLE PATIENT CAPITAL WITH AFFORDABLE INTEREST RATES AND SOUND TECHNICAL ASSISTANCE AND BUSINESS SUPPORT SERVICES, MCI NURTURES MINORITY BUSINESSES INTO SUCCESSFUL BUSINESSES. MANY STUDIES HAVE DOCUMENTED THAT MINORITY OWNED SMALL BUSINESSES EXPERIENCE HIGHER LOAN DENIAL RATES AND PAY HIGHER INTEREST RATES THAN WHITE-OWNED BUSINESSES EVEN AFTER CONTROLLING FOR DIFFERENCES IN CREDITWORTHINESS. BECAUSE OF THESE DENIAL RATES, MINORITY OWNED BUSINESS MUST RELY MORE UPON OWNER'S EQUITY AND LESS ON BANK DEBT. YET, THESE MINORITY BUSINESSES HAVE LESS EQUITY BECAUSE THEIR WEALTH BASE IS SMALLER. AS A RESULT, MINORITY SMALL BUSINESSES LAUNCH WITH LESS TOTAL CAPITALIZATION THAN CONVENTIONAL BUSINESSES. WITH INADEQUATE CAPITALIZATION, THESE BUSINESSES SUFFER A HIGHER FAILURE RATE THAN WHITE-OWNED BUSINESSES. CILF, HEDC'S CERTIFIED NATIONAL CDFI HAS PROVIDED OVER 30 LOANS TOTALING MORE THAN $3,200,000 TO MINORITY SMALL BUSINESS ENTREPRENEURS AS PART OF THE FORMER CAPITAL ACCESS FUND OF GREATER CLEVELAND (CAFGC) AND CAPITAL ACCESS FUND OF FLORIDA (CAFFL). EXAMPLES OF THE LOANS MADE INCLUDE: TAYLOR TOTS, A DAY CARE PROVIDER IN BROWARD COUNTY, FLORIDAMOBITES, A GOURMET MOBILE FOOD TRUCK IN CLEVELAND, OHIOSOUTHERN CUSTOM IRON ART, A METAL FABRICATOR IN BROWARD COUNTY, FLORIDAIN 2019, NDCCILF INCORPORATED THE MISSION OF PROVIDING ACCESS TO CAPITAL TO MINORITY AND WOMEN ENTREPRENEURS INTO ITS COMPLETE SUITE OF PROGRAMS. CILF IS CURRENTLY RAISING CAPITAL FOR MINORITY LENDING WHICH IT ANTICIPATES DEPLOYING IN 2020.IN 2019, CILF RECEIVED A $3 MILLION EQ2 INVESTMENT FROM DISCOVER BANK THAT IT IN TURN LOANED TO THE DELAWARE INNOVATION SPACE, A SCIENCE AND TECHNOLOGY INCUBATOR DEVELOPED IN PARTNERSHIP WITH DUPONT AND THE UNIVERSITY OF DELAWARE. THE BUILDING WAS DONATED TO THE DE NOVO NONPROFIT FOR THIS VENTURE BY DUPONT AND IS LOCATED ON THE GROUNDS OF THEIR EXPERIMENTAL STATION IN WILMINGTON, DELAWARE. THE LOAN PROVIDED BY CILF WILL BE USED TO PROVIDE LOW-COST, PATIENT FUNDING TO EARLY STAGE COMPANIES LOOKING TO UTILIZE STATE OF THE ART LAB FACILITIES TO INCUBATE THEIR PRODUCT OR PROCESS. REPAID PRINCIPAL WILL BE DEPLOYED TO FUND ADDITIONAL SMALL BUSINESS AND NONPROFIT BORROWERS THAT MEET DISCOVERS CRA NEEDS IN THE STATE OF DELAWARE.ALSO, IN 2019, CILF CAPITALIZED AN AFFORDABLE HOUSING PREDEVELOPMENT LOAN FUND THAT IT LENDS TO QUALIFIED LIHTC DEVELOPERS TO WHO NEED FUNDS TO PAY FOR SOFT COST ASSOCIATED WITH ASSEMBLING A LIHTC APPLICATION TO OBTAIN CREDITS.

LOW INCOME HOUSING:TO CONSTRUCT NEW LOW INCOME HOUSING AND TO DEVELOP, MANAGE, OPERATE, PROMOTE, FUND, AND SUPPORT EXISTING LOW INCOME HOUSING FOR PERSONS OF LIMITED FINANCIAL MEANS, HANDICAPPED PERSONS, ELDERLY PERSONS, AND OTHER PERSONS IN NEED OF SAFE ADEQUATE AFFORDABLE HOUSING AND TO ASSIST GENERALLY IN THE ALLEVIATION OF HOUSING SHORTAGES THROUGHOUT THE US.HEDC IS A NATIONAL LEADER IN LOW INCOME HOUSING THROUGH BOTH DEVELOPMENT AND INVESTMENT. WORKING IN PARTNERSHIP WITH NONPROFIT ORGANIZATIONS AND SERVICE PROVIDERS AROUND THE NATION, HEDC HAS DEVELOPED, FINANCED, OPERATED, AND/OR MANAGED OVER 11,700 UNITS OF QUALITY, SAFE, ADEQUATE, AND AFFORDABLE (CONT. ON SCHEDULE O) LOW-INCOME HOUSING TOTALING MORE THAN$1.7 BILLION OF INVESTMENT IN LOW INCOME COMMUNITIES IN MORE THAN 30 STATES. IN 2019, THROUGH OUR LOW-INCOME HOUSING DEVELOPMENT AND INVESTMENT ACTIVITIES, HEDC THROUGH ITS SUBORDINATE CORPORATION, NDC CORPORATE EQUITY FUND INVESTED $92.2 MILLION IN 13 PROJECTS CONTAINING 758 UNITS OF QUALITY, SAFE, ADEQUATE, AND AFFORDABLE HOUSING FOR LOW INCOME PERSONS AND FAMILIES, THE ELDERLY, AND PEOPLE WITH SPECIAL NEEDS. INVESTMENT AND DEVELOPMENT ACTIVITIES TOTALED $518.8 MILLION. THE FOLLOWING ARE REPRESENTATIVE SAMPLES OF HEDC AFFORDABLE HOUSING PROJECTS COMPLETED IN 2019:COURTLAND ARMS NEW BRITAIN, CTNDC CORPORATE EQUITY FUND MADE AN EQUITY INVESTMENT OF $3,436,936 FOR THIS $7,349,352 AFFORDABLE HOUSING RENOVATION PROJECT LOCATED IN NEW BRITAIN, CONNECTICUT. THE PROJECT IS PROVIDING PERMANENT HOUSING FOR 24 FAMILIES/INDIVIDUALS. THE PROJECT WILL CONTAIN 24 ONE BEDROOM UNITS, FOUR WILL BE AVAILABLE TO RENTERS WITH INCOMES BELOW 25% OF AREA MEDIAN INCOME, SEVEN UNITS WILL BE AVAILABLE FOR RENTERS WITH INCOMES BELOW 50% OF AREA MEDIAN INCOME AND THIRTEEN UNITES WILL BE OCCUPIED BY RENTERS WITH INCOMES BELOW 60% OF AREA MEDIAN INCOME. RENTAL ASSISTANT PAYMENTS WILL BE AVAILABLE TO SELECTED RENTERS TO OFFSET RENT LOSS DUE TO OCCUPANTS HAVING INCOMES BELOW THOSE OUTLINED ABOVE. THE DEVELOPER IS CHRYSALIS CENTER REAL ESTATE CORPORATION OF HARTFORD, CONNECTICUT. NORTHERN HOTEL FORT COLLINS - CONDC CORPORATE EQUITY FUND MADE A $2,266,622 EQUITY INVESTMENT IN A 47-UNIT SENIOR PROJECT DEVELOPED BY MJT PROPERTIES, INC OF ENGLEWOOD, COLORADO. THIS $6,671,600 PROJECT IS A RE-SYNDICATION OF THE ORIGINAL 2000/2001 RENOVATION OF THIS HISTORIC HOTEL AND IS PROVIDING 47-UNITS OF FULLY RENOVATED AFFORDABLE LIVING FOR SENIORS (55+) WHOSE INCOMES RANGE FROM 40% TO 60% OF AREA MEDIAN INCOME FOR THE FORT COLLINS SMSA. RENTS FOR THE 41ONE BEDROOM UNITS IS $595 A MONTH AND THE TWO-BEDROOM UNITS WILL RENT FOR $714 A MONTH.ST. JOSEPH'S COMMONS CLEVELAND, OHST JOSEPH'S COMMONS APARTMENTS IS A 68-UNIT NEW CONSTRUCTION RENTAL PROPERTY LOCATED IN CLEVELAND, OHIO. THE PROJECT SPONSOR IS FRONT STEPS HOUSING SERVICES A CLEVELAND BASED NONPROFIT ENGAGED IN THE DEVELOPMENT OF AFFORDABLE HOUSING. NDC CORPORATE EQUITY FUND INVESTED $10, 613,464 IN EQUITY INTO THIS $14,041,515 PROJECT. EIGHTEEN OF THE UNITS WILL BE RENTED TO FAMILIES WHOSE INCOMES DO NOT EXCEED 30% OF AREA MEDIAN INCOME, TWENTY-THREE WILL BE RENTED TO FAMILIES WITH INCOME LESS THAN 50% OF AREA MEDIAN INCOME AND TWENTY-SEVEN WILL BE RENTED TO OCCUPANTS WHOSE INCOMES ARE AT 60% OR LESS OF AREA MEDIAN INCOME. HUD HOUSING CHOICE VOUCHERS WILL BE AVAILABLE FOR ALL 68-UNITS.

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