Financial Institutions

INVESTING IN THE FUND . . . A way for financial institutions to collaborate with an experienced and trusted
community partner to build a healthier local economy!
Realty One Lending of  Texas.  Realty One Lending & Mutual Fund is under Home Sweet Home Community
Redevelopment Corporation 501(c)(3)/CDE.  We will providing loans, training and technical assistance to
nonprofit organizations, low to moderate income communities, and micro entrepreneurs throughout the Texas
Region.  The heart of our work is to offer community-minded investors and donors a practical way to help their
neighbors and communities and promote economic justice.  Individuals, faith-based and civic organizations,
foundations, trusts, businesses and most of the financial institutions in the area have invested through loans
and/or donations to Realty One Lending & Mutual Fund, creating a lending capital pool so low-cost flexible
loans can, in turn, be made to those who are unable to access conventional credit.  In this way, Realty One
Lending & Mutual Fund provides an opportunity for financial institutions to participate as part of a lasting
solution to poverty.

Why invest?
Realty One Lending & Mutual Fund offers financial institutions opportunities to support local, positive socio-
economic change, sometimes involving projects which they are unable to commit to through their conventional
lending programs :

Be part of the solution to existing problems by pooling money with other community-minded individuals and
organizations to make a significant impact Invest locally, in a socially responsible way and see tangible results
*Provide affordable housing, decent jobs and quality social services
*Help build the capacity of individuals and community-based non-profit organizations
*Act on religious, political or philosophical convictions, aligning your money with your values
*See your funds used again and again creating a renewable resource for our community
*Earn social and economic dividends while strengthening local communities
*Strengthen the local economy and future bank customers
*Be a good corporate neighbor and build goodwill
*Earn Community Reinvestment Act (CRA) credit

Who benefits from our investment?

EVERYONE!  Capital is essential to developing and maintaining healthy communities.  Small businesses are the
backbone of our economy and community nonprofit provide vital services, frequently filling in the social and
economic gaps in low-income populations and neighborhoods.   Since 2004, Home Sweet Home Community
Redevelopment Corporation has served as a unique resource to the entire Southeast Region of Texas, we will

*Lending capital for vital affordable housing and community development projects
*Expanding access to capital and filling credit voids in low income urban and rural areas
*Encouraging economic self-reliance and offering financial technical support
*Providing a link between socially concerned investors and communities in need
*Benefiting low-income people and neighborhoods and special needs populations
*What are the results?

Fund has:

Assisted over 50 Loans for First time home buyers, in the past 15 years.
Rehab/Rebuilt more than 50 affordable housing units
Created or retained close to 30 jobs in the constructions industry
Leveraged more than $50 Thousand in local community and economic development
Provided training and technical assistance to thousands of micro and social entrepreneurs.
Just think of what we can do with your help!

How can financial institutions participate?
Local opportunities for banks, credit unions, and others, to support healthy communities, through the Realty
One Lending & Mutual Fund, include:

Donations and Grants for Outreach, Training, and Support

Operating Support:  Micro enterprise and community development work is very labor intensive and, thus,
requires a significant amount of organizational resources to reach, counsel, educate, finance and support
entrepreneurs and nonprofit.   Basic operating support is critical to our efforts.
Specific Programs:  Business plan training courses (with Neighbor Works America, Small Business
Administration, and other lending communities) and various specialized workshops throughout the year.  
Support and sponsorships are needed.

Individual Development Accounts: Realty One Lending & Mutual Fund will manages the business
component of this program (with the Affordable Housing Partnership) that provides financial literacy, business
training and matching grants to low-income entrepreneurs to start or expand their business.
Donations and Grants to Revolving Loan Fund

Realty One Lending & Mutual Fund raises equity through donations and grants, enabling us to leverage
additional capital – both debt and equity.  Many banks have provided equity contributions (no financial return)
to help strengthen the Community Loan Fund, allowing us to make “
higher-risk” loans, provide investor
security and generate interest income to become partially self-sufficient.  Matching resources from banks (and
others) greatly enhances the Community Loan Fund’s ability to compete for limited funds on a national basis.  
For example, the Department of Treasury CDFI Fund usually requires a $1 to $1 match for grant applications
– without the match, opportunities are lost

Below-Market Rate Loans To Revolving Loan Fund

Loans:  unsecured debt (up to $500,000) from banks (and others) at below-market interest rates.  The lower
the rate, and the longer the term, the more useful to borrowers.
Loans Forgiven Over Time:  A few banks have converted debt to contributions over time (thus, potentially
receiving CRA credit under the lending and investment tests).
Equity Equivalent Investment (EQ2): deeply subordinated debt with long term maturity
Referrals and Participation Loans

Loan Referrals:  Referrals work both ways – bank referrals to Realty One Lending & Mutual Fund and the
Home Sweet Home Community Redevelopment Corporation referrals to banks. We welcome the opportunity to
develop solid working relationships with individual lenders and banking institutions.
Participation Loans:  Over the years, we have had formal and informal “participation” loans with various
lenders to assorted businesses and projects.

Other Relationships and Services

Human Resources:  Realty One Lending & Mutual Fund is a community-based organization that relies heavily
on volunteers.  We value and appreciate support from a diverse range of community members.  Individuals
may contribute by serving on committees, teaching at workshops, spreading the good word at work and at
home, and in many other ways.

Deposits:  As a financial institution, Realty One Lending & Mutual Fund has various financial needs.  For
example, favorable interest rates on deposits provide Realty One Lending & Mutual Fund with interest income
to support our efforts.  Providing useful services, and waiving fees, are great ways to support the organization.
Banks, credit unions, and other financial institutions, are important partners in our efforts to improve the health
and wealth of our communities.  Please consider joining us in any of the above ways, or propose a new one.

Home Sweet Home Community Redevelopment Corporation of the Houston Texas is a 501(c)(3) nonprofit
corporation, as determined by the IRS.  Donations are tax-deductible, to the extent of the law.  Financial
statements and annual reports are available upon request.

Why is the Realty One Lending & Mutual Fund and Home Sweet Home Community Redevelopment
Corporation a trusted partner?

Realty One Lending & Mutual Fund has had a Fifteen year record of accomplishments with timely repayments to
investors resulting in a 100% perfect repayment rate to all its lenders, since 2003.

All investors share any risk but our cumulative loan loss rate is less than 2%.
Loans to the Fund are unsecured, but safety derives from a healthy loan loss reserve, loan monitoring, personal
relations, responsible management and a shared sense of commitment by all parties.
Borrowers are supported with ongoing training and technical assistance.
We carefully evaluates each loan application and business plan and makes loans that are socially worthwhile
and financially sound.

Realty One Lending & Mutual Fund is a member of the Opportunity Finance Network, which sets standards and
best practices for member organizations.
Home Sweet Home Community Redevelopment Corporation is certified by the U.S. Department of Treasury as a
Community Development Education(CDE).

For more information, please contact Demetria Reed-McNeal Director of Development, (713) 726-2968 or