JORDAN HEIGHTS NEIGHBORHOOD DEVELOPMENT INVESTMENT FUND
In 2013, Housing Association & Development Corporation and a consortium of community banks, along with First Presbyterian Church of Allentown, created the Jordan Heights Neighborhood Development Investment Fund to benefit HADC’s affordable housing work in central Allentown.
The initial launch of the Investment Fund was made with initial investments totaling $445,000 from 10 banks serving the Lehigh Valley and First Presbyterian Church. The creation of the fund inaugurated a new way for HADC to manage the financing that underpins HADC’s construction projects while opening a new path for entities interested in community revitalization to provide support to HADC.
Unlike charitable contributions to HADC that directly fund project expenses, dollars designated for the Jordan Heights Investment Fund are held in high-yield certificates of deposit, which serve as collateral to secure a line of credit. HADC uses that credit line as bridge financing until anticipated project revenue is received. When that income is received, HADC repays the amount drawn from the line of credit so the original investment dollars are available to use time after time. The fund helps smooth HADC’s cash flow.
The fund has earned the praise of federal bank regulators who regard it as an innovative investment tool under the criteria of the Community Reinvestment Act.
Corporations and other entities, including individuals, can provide support to the Investment Fund, either as a designated contribution or as a termed investment. Contributions may be in any amount. Investors, on the other hand, must make a minimum investment of $10,000. Investors receive 1 percent interest per annum, and the investment matures after five years. Investors can elect to either receive repayment of the original amount at that time or renew the investment for another designated term.
The Jordan Heights Investment Fund is serviced by KeyBank.
Investors in the Jordan Heights Neighborhood Development Investment Fund include:
ESSA Bank and Trust
First Northern Bank and Trust
First Presbyterian Church of Allentown
Lafayette Ambassador Bank
New Tripoli Bank