Calvert Social Investment Foundation, Inc.: Program Related Investment - Loan To Support ULC In Acquiring And Developing Urban Properties In Underserved Communities

The Urban Land Conservancy (ULC) will use the facility to acquire and develop urban properties in underserved communities. Calvert will sell $10 million worth of Denver branded Community Investment Notes with $3.5 million from philanthropic PRI / Grants/ MRIs acting as first loss against the ULC facility to reduce the cost of the loan to ULC and offset concentration risk. The subordinate financing assists Calvert in attracting investors to the program. Essentially, $3.5 million leverages $10 million for ULC. Gary Community Investment Corporation has committed $1.75 million (or 50%) to the project. The Denver branded investments will roll up into Calvert's national $275 million Community Investment Note (See Exhibit B), an instrument with less than a 2% default rate over 20 years where no investor has lost principal or interest.