City First Annual Impact Report

‘ impact leadership culture

CITY FIRST

1

LOCAL PIONEERS came together 25 years ago to launch DC’s first community development financial institution

BANK ENTERPRISES HOMES

WITH SOCIAL JUSTICE ORIGINS founded by the community, for the community to address the lack of access to capital from decades of disinvestment and discrimination

FOUNDATION NEW MARKETS TAX CREDIT

WITH A VISION that the intentional, disciplined and targeted provision of capital focused on beneficial results creates, supports, and champions economic equity for people in underserved communities

contents ANNUAL IMPACT REPORT

4 | PRESIDENT’S LETTER

IMPACT. LEADERSHIP. CULTURE

6 | WHO WE ARE COMMUNITY CENTRIC

8 | WHAT WE DO

ANCHORING NEIGHBORHOODS

10 | WHY WE DO IT

2017 COMMUNITY IMPACT 24 | HOUSING HOUSE OF RUTH SHARED APPRECIATION E STREET COOPERATIVE SUN CREST HEIGHTS 428 NEWCOMB STREET RB5 INVESTMENTS COMMUNITY LAND TRUST

ECONOMIC DISPARITY

12 | HOW YOU CAN HELP INVEST LOCALLY

14 | VISIONARIES ST. MICHAEL’S MARTHA’S TABLE U STREET PARKING JOE HORNING

30 | EDUCATION DC INTERNATIONAL SCHOOL CRISTO REY HIGH SCHOOL LITTLE LIGHTS URBAN MINISTRIES

34 | HEALTH MARY’S CENTER RONALD MCDONALD HOUSE SHOPRITE

38 | ARTS CAPITALBOP STEP AFRIKA! MOSAIC THEATER COMPANY

42 | SMALL BUSINESS H2DESIGNBUILD H STREET CDC BERISSO LLC RHOADS INDUSTRIES

46 | TEAM CITY FIRST 50 | PARTNERSHIPS 52 | CITY FIRST FOUNDATION 54 | PERFORMANCE SNAPSHOT 56 | IMPACT MAP

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PRESIDENT’S LETTER IMPACT. LEADERSHIP. CULTURE

MORE THAN 90% OF OUR 2017 LENDING WAS DELIVERED TO STRENGTHEN COMMUNITIES

$81 million IN TOTAL WENT TOWARD MISSION DRIVEN IMPACT.

$35.7

MILLION IN LOANS

+

$45.5

MILLION IN NMTC

Since our founding nearly 25 years ago, City First has directed more than $1.2 billion in community-focused (impact) capital, which includes $661 million in loans and over $500 million in New Markets Tax Credit allocations towards community development projects and the individuals and teams that envision and execute them.

IMPACT | 2017 With this work, we are very proud to have supported the creation and retention of more than 18,000 jobs, 15,000 new school seats for children, and affordable homes for 7,660 families and individuals. City First also helped provide life improving services to more than 785,000 individuals through assisting our amazing non-profit clients to build or expand critical community facilities that we helped finance through our NMTC Program or commercial credit.

We are continuing to find ways to grow in our relevance, work and impact - as of December 31, 2017 City First Bank assets have grown to $309 million and deposits to $250 million, with more than 90 percent of our 2017 lending delivered to underserved neighborhoods! This means that in addition to our $45.5 million in 2017 NMTC financings, $32 million from deposits, and $3.68 million in investments from our Nonprofit Loan Fund went directly toward strengthening communities in this past year alone.

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LEADERSHIP | COMMUNITY ARCHITECTS

SUPPORT THE CHANGE

In 2017, as in every year, our true impact is only effected through the incredible vision, hard work and dedication of business and community leaders. Two such architects are Maria Gomez, the nonprofit visionary of Mary’s Center in Washington, DC, and Ernst Valery, a successful and socially conscious real estate developer in Baltimore, Maryland. In each case, we didn’t just finance their projects, we shared their vision and invested in their solutions to strengthen their communities.

In this year’s Impact Report, you will meet pioneers from nonprofits to social entrepreneurs who listen to, engage with, and serve communities to solve some of our greatest disparities and challenges. From preserving and creating affordable housing, increasing quality educational seats, providing for the medically underserved, expanding access to the arts, and financing small business growth we are proud to come along side these visionaries.

CULTURE | DEVELOPING PARTNERSHIPS Your deposits and investments in City First help drive solutions focused on more equitable development and upward economic mobility for all. By establishing and strengthening new and existing partnerships with those who share our vision, City First is committed to growing our impact.

With that intent, in 2017 City First became Washington, DC’s first certified B Corp bank! It was quite an accomplishment and honor to join ranks with other certified B Corp businesses throughout the United States, and indeed the world, who are driven by the belief that businesses should be used as a force for good. Four years ago, we joined the Global Alliance for Banking on Values (GABV) whose members have one thing in common: a shared mission to use finance to deliver sustainable economic, social and environmental development, with a focus on helping individuals fulfill their potential and build stronger communities. These commitments echo the spirit of our founders almost 25 years ago, when City First began its path to be the District of Columbia’s first Community Development Financial Institution (CDFI).

By supporting these local change agents, you help to finance critical solutions that deliver tangible, urgent and lasting impact to individuals and families within our communities, most of which could not be accomplished without our collective assistance.

We invite you to start or expand your participation alongside us and help fund the change that you want to see in our communities. Whether you deposit with City First Bank or invest in our nonprofits, we deliver lasting impact that you can be proud of. If you are already standing with us, we thank you for your confidence in the critical work and solutions we have endeavored to deliver with great discipline, compassion, innovation, and integrity for the last 25 years.

BRIAN E. ARGRETT Chairman, City First Enterprises President & CEO, City First Bank

CITY CITY FIRST FIRST

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who we are

COMMUNITY CENTRIC City First is a commercial community development financial organization formed by local leaders, 25 years ago.

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YEARS OF MISSION FINANCE

As the first CDFI in the nation’s capital, City First envisioned that the intentional, disciplined and targeted provision of capital focused on beneficial results creates, supports, and champions economic equity for people in underserved communities.

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CUMULATIVE COMMUNITY CAPITAL OVER

$1.2

BILLION

INVESTED IN COMMUNITY DEVELOPMENT

$661 MILLION LOANS DEPLOYED

+

$509 MILLION NEW MARKETS TAX CREDITS DEPLOYED

COMMUNITY IMPACT

7,660 UNITS OF AFFORDABLE HOUSING CREATED

15,000 EDUCATIONAL SCHOOL SEATS CREATED

785,000 COMMUNITY MEMBERS SERVED VIA INCREASED NONPROFIT CAPACITY

18,300 JOBS CREATED/ RETAINED + CONSTRUCTION JOBS

INVESTMENTS THAT BEGAN WITH $9.4 MILLION HAS GROWN TO $1.2 BILLION DEPLOYED TO STRENGTHEN COMMUNITIES

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what we do

ANCHORING NEIGHBORHOODS City First channels capital into communities that need it most. With your deposits, investments, and contributions, we finance small businesses and nonprofits that create jobs, affordable housing and community facilities.

In addition, one of our strongest tools is the federal New Markets Tax Credit program, where we subsidize large scale development to catalyze neighborhood revitalization.

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THE POWER OF NEW MARKETS TAX CREDIT INVESTMENTS

EDUCATION

ART CENTERS COMMERCIAL REAL ESTATE

SOCIAL SERVICE PROVIDERS

HEALTH CARE FACILITIES

AFFORDABLE HOUSING

$67

MILLION

$122 MILLION

$48

MILLION

GROCERY STORES

$74

MILLION

$98

MILLION

$61

MILLION

$41

MILLION

$509

MILLION TOTAL INVESTED CUMULATIVELY

$543

MILLION NEW MARKETS TAX CREDITS ALLOCATED

RANKING

19th

OUT OF 300 PLUS ALLOCATEES NATIONWIDE

$45.5

MILLION DEPLOYED IN 2017 TO FIVE HIGH IMPACT PROJECTS

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why we do it

ECONOMIC DISPARITY City First’s vision is a society in which every individual, family, and community has the opportunity and the access to capital and resources which will allow them to improve their well-being and prosper.

Despite our collective efforts, the current economic disparity in household wealth have reached their highest point since the 1980s, with Washington, DC and Baltimore, Maryland having the widest wealth gaps in the country.

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WHERE INEQUITIES PERSIST THE COLOR OF WEALTH

WHITE HOUSEHOLD AVG. NET WORTH IN DC IS

81x GREATER THAN

BLACK HOUSEHOLD AVG. NET WORTH IN DC

$30,000

Average cost to start a small business

$3.5K BLACK

$11K LATINO

$284K WHITE

2015 Urban Institute “Toward a Community Vision for Equitable Economic Development”

The wealth disparity gap in the District of Columbia is the glaring and growing.

This infographic displays the average net worth of households in Washington, DC in 2013 and 2014. According to The Urban Institute’s 2016 research report The Color of Wealth in the Nation’s Capital, the typical White household in DC had a net worth of $284,000. In contrast Black households had a net worth of $3,500.

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how you can help INVEST LOCALLY City First offers a unique value proposition as an uncompromised financial services provider for impact investors who are inspired by, and see genuine worth in, a financial institution that passionately reflects their values.

Join us in our commitment to finance critical solutions that deliver tangible, urgent, and lasting impact to individuals and families within our communities.

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MISSION FOCUSED LENDING When you invest with City First you have the assurance of our CDFI status as we work to create a more equitable society one neighborhood at a time.

CDFI DEPOSITORY BANK Unlike most banks, your deposits and investments with City First Bank support loans and other services that we provide to local change agents who are making a difference in their neighborhoods and improving quality of life for all.

MAKE A DEPOSIT Open an FDIC-insured bank deposit account that turns into community focused lending that is deployed to local borrowers

NONPROFIT CDFI LOAN FUND Our CDFI Nonprofit Loan Fund is an investment opportunity for philanthropists, grantmakers, and other institutional investors to support the most impactful projects and providers in pursuit of economic equity and social impact.

MAKE AN IMPACT INVESTMENT Support our mission focused activities through a fixed income investment in our nonprofit loan fund, blending financial returns with intentional social impact

MAKE A CONTRIBUTION MAKE AN EQUITY INVESTMENT Become a shareholder in our bank and leverage your investment for social impact

Provide patient, flexible capital to support lending, loan loss reserves, loan fund infrastructure and technical assistance

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community visionaries

CHANGE AGENTS Our true impact is only effected through the incredible vision, hard work, and dedication of business and community leaders. Two such visionaries are Ernst Valery, a successful and socially conscious real estate developer in Baltimore, Maryland and Patty Stonesifer, the CEO of Martha’s Table in Washington, DC. We didn’t just finance their projects, we shared their vision and invested in solutions to strengthen communities they serve.

THI S PR OJ ECT HAS B EEN AWA RDED

$3 million I N HI GHLY COMPETI TI VE STAT E HI STOR I C TAX CR EDI T EQUI T Y

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LOCATED I N A PR I OR I TY F UN DI N G & SU STA I N A B LE N EI GHB O RHOOD

ST. MICHAEL’S REDEVELOPMENT, BALTIMORE MD DEVELOPMENT WITHOUT DISPLACEMENT Ernst Valery was raised on the outskirts of New York City, where housing is largely unaffordable. In an attempt to tackle this issue, Mr. Valery studied urban planning, and made his start in the housing industry by redeveloping rowhouses in Philadelphia. After redeveloping properties across the city, he realized he was displacing people, which was the exact opposite of what he set out to do.

Digging further, he returned to graduate school in order to understand how to manage development products to mitigate gentrification. Mr. Valery got the idea to move to Baltimore from former head of planning, Otis Rolley, and now, as executive director and co-founder of SAA | EVI, Valery is developing properties without displacing people in the area.

“There is a responsibility to development,” Valery said. “In 2008, we felt like the people here deserved

something more, we wanted to redevelop Baltimore, but have the people all be there when it was all said and done.”

Today, SAA | EVI promotes the value of redeveloping areas without removing the residents who live there. In 2017, Valery bought a large property in Washington Hill neighborhood of Baltimore. What used to be a church is now being redeveloped into a 37 unit, multifamily apartment complex and a 67,000 square foot commercial and retail space. With this redevelopment, which includes a brewpub with its own distillery, Valery hopes to give the neighborhood this amenity that will create a space for community.

“We see it as more than just a space,” Valery said. “We want to have a massive area for people with their strollers, people playing games and for people to build community.” saaevi.com

“I THINK THE N EI G HBOR HOOD W I L L O N LY G E T B E TTE R BECAUSE OF I T. BEC AU SE I T HAS T HAT A M E N I TY, A N D YOU CAN’T HAV E A G R EAT N EI G HBOR HO O D W I TH O U T TH E RESTAURA N TS , T HE D RY C L EA N ER S, A N D TH AT G ATH E R I N G P L AC E,” M R . VA L ERY SAI D.

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MARTHA’S TABLE, WASHINGTON DC THE COMMONS AT STANTON SQUARE EDUCATION, FOOD AND OPPORTUNITY FOR EVERY CHILD Through diverse food access, education, and community support programs, Martha’s Table works to ensure that every child and family has a community committed to their success. Children east of the river not only have access to education, but also to beautiful, fresh fruits, vegetables and healthy foods.

Patty Stonesifer, the CEO, believes that parents at work and children in school have access to as high a quality of early childhood programming as their middle income peers.

“We all believe that every child should have their greatest opportunity, yet here in DC, it simply is not true,” Ms. Stonesifer said “The quality of neighborhoods, schools and resources are unevenly distributed, yet we remain surprised when the outcomes for children are different.”

City First allocated $12,000,000 in New Markets Tax Credits to Martha’s Table for the relocation and expansion of

its headquarters to The Commons at Stanton Square development in Ward 8. The new location will include all of its services and support programs for the community. In 2017, The Commons project won Novogradac’s QLICIs of the year award.

After its ribbon cutting in June 2018, Martha’s Table will launch an initiative called Join Us At The Table, where members of the community can address their needs, hopes and dreams. The new location at The Commons gives it the opportunity to be a place-based, highimpact organization that is shaped for the needs of Ward 8 residents.

“We know very specifically what the challenges are of growing up in a lower resource neighborhood and what we can do is stand with that community and say ‘we see you, we stand with you, we want to be part of the solution,’” Ms. Stonesifer said. marthastable.org

“ T HE U N EQ UA L ACC E SS TO R E S O U R C E S A N D O P P O R TU N I TY CON T I N U ES A N D TH E SYSTE M I S STI L L D E E P LY A F F E C TE D BY T HE HI STORY O F R AC I S M I N TH I S CO U N TRY,” MS . STO N E S I F E R SA I D. “ OU R CO R E B E L I E F I S TH AT E V E RY C H I L D S H O U L D H AV E T HEI R G R E ATE ST O P P O R TU N I TY F O R TH E I R B E ST F U TU R E , R E G A R DL E SS O F W H E R E TH E Y A R E F R O M.”

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THE R ELOCATI ON W I LL SERVE A PR OJ ECTED

40,000

CL I EN TS I N THE DI STR I CT OF CO LUMB I A

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alumni

HOUSE OF RUTH WASHINGTON, DC

GROWING WITH FAMILY THE STORY:

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ANNUAL REPORT

|

2017

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U STREET PARKING TESFAYE BROTHERS

This year, we are celebrating U Street Parking, an organization that started with the Tesfaye brothers’ dream of becoming DC’s leading and largest parking company.

The Tesfaye brothers, an Ethiopian immigrant family, began in the parking industry in 1992 as parking attendants, and worked their way up through management.

In 1998, U Street Parking was founded with a 30-space parking lot on U Street where patrons paid $2 per vehicle. U Street, known for its vibrant culture and world-famous restaurants, has scant parking due to its popularity. They recognized the lack of parking as an opportunity to service the community and embark on their dream.

firm in the country. With more than 52 valet parking locations that include world class eateries, the renowned shopping destination CityCenterDC, and international airports, U Street Parking has achieved their dream.

Financing from City First 20 years ago allowed the Tesfaye brothers to jumpstart their business. U Street Parking has been profiled by the Washington Business Journal and BBC News, and Henok Tesfaye is a recipient of the Shaw Champion Award, for being a prominent member of DC’s Ethiopian community.

I N I TS

20th

YEA R, U STR EET PA R KI N G MA N AGES SOME OF THE LA R GEST CA R PA R KS I N THE DC A REA , I N CLU DI N G THE CI T Y ’ S CON VEN TI ON CEN T ER, B ASEB A LL STA DI U M , A N D THE R EAGA N N ATI ON A L A I R POR T, WI TH A STA FF OF OVER

600

EMPLOYEES

ustreetparking.com

Exactly two decades later, the increased demand for U Street Parking’s organization has enabled them to achieve into the preeminent minority owned parking management

“AS W E C E L E B R ATE O U R 2 0 TH A N N I V E R SA RY TH I S Y E A R W E LO OK B AC K O N O U R S U CC E SS A N D R E ME MB ER TH AT W E G OT O U R F I R ST LOA N F RO M C I TY F I R ST, O N E O F O U R PA R TN E RS.”

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BAPTIST LEGACY AWARD IN HONOR OF DEBBI HURD BAPTIST

The Baptist Legacy Award was established in memory of our founding President and CEO, Debbi Hurd Baptist. Each year, City First honors partners who exemplify Debbi’s commitment to improving the economic and social vitality of underserved communities, as well as promoting access to vital services to low wealth neighborhoods.

The Baptist Award recipient for 2017 is Joe Horning of The Horning Family Fund.

2000 Bethel Christian Fellowship Church; Venus Peterson SkilledCare, Inc. 2001 Gregory Maison Visions Cinema / Cafe Lounge; Capital City Public Charter School; Hercules Pitts; HOP and Associates 2002 Adrian Washington; Neighborhood Development Corporation;North Capitol Neighborhood Development, Inc; Washington Area Community Investment Fund (WACIF); One Economy and Columbia Heights/Shaw Family Support Collaborative; Warren Brown, CakeLove

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2003 Nextgen Construction and Renovation; Washington Math Science Technology Public Charter High School; Floyd Myers, Marshall Heights Community Development Organization 2004 Brightwood Manor Tenants Association; Booker T. Washington Public Charter School for Technical Arts; Hemingway Memorial African Methodist; Episcopal Church; Andre’s Brushless Car Wash; Career Technical Institute, Inc. 2005 SOME, Inc.; E. L. Haynes Public Charter School; Atlantic Street Baptist Church

2006 Latin American Youth Center and the Latin American Youth Build Public Charter School; Desa Sealy Ruffin

2011 N Street Village; Mi Casa

2007 The Cooperative Assistance Fund; Edward E. Furash Sue Marshall

2013 Robert Pohlman, Coaliton for Non Profit Housing and Economic Development (CNHED); Bob Moore, Development Corporation of Columbia Heights (Posthumous)

2008 Building Hope; Metropolitan Washington Bankers Group; Kelly Sweeney McShane 2009 Bread for the City; Jobs for Homeless People; Oramenta Newsome, DC LISC 2010 DC Primary Care Association; Maria Gomez, Mary’s Center for Maternal and Child Care

2012 KIPP DC; David O. Treadwell

2014 Stanley Jackson, Anacostia Economic Development Corporation (AEDC) 2015 Jane Lang, Atlas Performing Arts Center 2016 Cora Williams, Ideal Electrical Supply Corporation

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JOE HORNING, HORNING FAMILY FUND ADDRESSING ECONOMIC AND RACIAL DISPARITIES

LEGACY AWARD RECIPIENT

THE HORNING FA M I LY F U N D AWARDS MORE THAN

$1

MILLION ANNUALLY TO OV E R

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N O N P R O F I TS

The Horning Family Fund was established in the late 1990s by Joe and Lynne Horning. Their fund focuses on Ward 8, Washington, DC, to address the disparity of opportunities and services for minority children and their families.

The Horning Family Fund awards more than $1 million annually to over 25 DC nonprofits, such as Horton’s Kids, Critical Exposure, and DC Fiscal Policy Institute.

Its latest investment of $10 million, in partnership with Martha’s Table, Horning Brothers, and the Community of Hope, supported the construction of The Commons at Stanton Square that is focused on the healthy development of children and their families.

More than 37 percent of people in Ward 8 are below the poverty line, more than double the average rate in Washington, DC. In partnership with the Horning Family Fund, local nonprofits are helping to build communities where families thrive and children are nurtured to achieve their greatest potential.

This year, Horning Brothers Management Company celebrates 60 years of building high quality residential communities and commercial properties, boasting marquee projects such as Tivoli Square in the Columbia Heights neighborhood of Washington, DC. horningfamilyfund.org

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2017 highlights YOUR INVESTMENTS AT WORK City First is proud to present the business owners and nonprofit leaders whose success manifests both social and financial returns.

Your deposits support housing, education, health, arts, and small businesses, holistically representing the intersections of a healthy community.

We applaud the vision of these change agents and community architects captured here in our 2017 Impact Report highlights.

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HOUSING ACCESSIBILITY

EDUCATIONAL INVESTMENTS

HEALTHIER COMMUNITIES

ARTS ENGAGING COMMUNITIES

SMALL BUSINESS DEVELOPMENT 23 CITY FIRST

housing small

ACCESSIBILITY We measure our success by the impact we have on our community and how the loans we originate help those whom we serve.

In 2017, the majority of our lending went toward increasing housing accessibility in low-to moderateincome communities, including veterans.

CITY FIRST HAS FINANCED THE CREATION AND RETENTION OF

7,660 AFFORDABLE HOUSING

UNITS AND IN 2017 ALONE, FINANCED

336 UNITS.

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HOUSING ACCESSIBILITY

HOUSE OF RUTH GIVING SHELTER TO SURVIVORS OF DOMESTIC ABUSE

Since 1976, this Washington-based nonprofit has given shelter to domestic abuse survivors, focusing on those with limited resources. Today, House of Ruth serves more than 650 women and families with 11 housing programs, and two supportive programs such as the Domestic Violence Support Center and their brand-new Kidspace Child Development Center.

Sandra Jackson, the executive director of House of Ruth, works tirelessly to provide survivors with shelter and support they need. As a nonprofit, this organization doesn’t have the luxury of large staff (as they would like) because it is more important that its finances go to critical services for survivors.

Ms. Jackson juggles multiple tasks: managing the overall administration of House of Ruth, keeping up with current legislation, as well as maintaining contact with the domestic abuse survivors she serves.

“As many women are stepping forward, saying they know that domestic violence has affected them and challenged them, our work and our services are even more important,” Ms. Jackson said. “And even more important are the children that have been impacted by those relationships.”

For the first time in its 43-year history, House of Ruth launched a capital campaign to build a new Kidspace Child Development Center in Ward 7.

This state-of-the-art facility will serve 88 children, more than doubling the number served at its current temporary location. This facility will allow the organization to provide services that are beneficial to the children.

THE CHI LD DEVELOPMEN T CEN TER W I LL PR OVI DE SPEECH, PLAY A N D OCCU PATI ON A L THER A PY TO MORE THA N

80 CHILDREN

MA N Y OF WHOM HAVE SPECI A L N EEDS OR DEVELOPMEN TA L DELAYS FR OM B EI N G VI CTI MS OF DOMESTI C VI OLEN CE A N D HOMELESSN ESS.

houseofruth.org

“IT’S G OI N G TO BE T HE M OST WO N DE R F U L S I G H T AS YO U CO M E ACROSS T HE BR I D G E I N TO WA RD 7. I T’ S G O I N G TO B E O U R WAY OF RE A L LY CON N EC T I N G W I T H T H E CO M M U N I TY A N D P R OV I DI N G THE BEST SERV I C ES F OR C HI L D R E N W H O N E E D I T TH E MOST.” SA I D SA N D R A JAC KSON , EX EC U T I V E D I R E C TO R O F H O U S E O F R U TH

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CITY FIRST SHARED APPRECIATION MODEL

P E RMA N E N T A F FOR DA B IL IT Y

243 UNITS OF HOUSING CREATED AND PRESERVED TO DATE

To achieve permanent affordability, City First Homes operates a “sharedappreciation model,” which is an innovative system that creates mixedincome communities to be sustainable for generations. A one-time, up-front subsidy is maintained by sharing appreciation when homes are resold.

In essence, the selling homeowner shares the appreciation with the purchasing homeowner when they sell their home. This process allows the homeowner to build a moderate amount of wealth, while offering a price affordable to the next buyer.

E STREET COOPERATIVE HOUSING PARTNERSHIPS AT ITS BEST

This 10-unit cooperative houses tenants from three different generations near the historic and rapidly gentrifying H Street NE corridor and its Atlas Arts District.

In 2008, residents purchased this building with funds from DC’s Department of Housing and Community Development (DHCD). Afterwards, residents tried to secure financing for critical repairs, but due to the 2008 financial crisis the process was delayed.

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In 2017, the co-op was re-energized after working with City First Enterprises.

We provided staged financing to cover immediate costs and to submit an application to DHCD for construction funds. With additional financing from City First and DHCD, the cooperative will be able to finish renovations and allow residents to become homeowners in a city where affordable housing options are swiftly disappearing.

KEY PARTNERS ON THIS

10 UNIT

COOPERATIVE INCLUDE HOUSING COUNSELING SERVICES AND REDEVELOPMENT HOUSING ADVISORS

HOUSING ACCESSIBILITY

SUN CREST HEIGHTS SOLAR PANELS THAT OFFSET ENERGY COSTS This project is a multifamily residential complex located in Capitol Heights, a low-income neighborhood included in Prince George’s County Transforming Neighborhoods Initiative.

VNV Development (VNVD) purchased the 44-unit property in 2016. After their acquisition, almost half of the units were vacant. In order to renovate and close these vacancies, City First Enterprises provided a $440,000 subordinated loan to finance VNVD’s ongoing efforts.

Each renovated unit includes an additional bedroom, LED Lighting, upgraded Energy-Star appliances, granite counters and water-conserving toilets and fixtures. The project features a refurbished playground and picnic area for families to enjoy.

THE SOLAR ARRAY WILL OFFSET NEARLY

100%

OF THE ENERGY CONSUMED BY THE BUILDING.

The renovation also includes a 250 kW solar array. This will cover all roof surfaces as well as the construction of a carport for additional solar panels and it will contribute to a significant reduction in operating expenses.

428 NEWCOMB STREET KEEPING RENTS AFFORDABLE

This building, overseen by Addis Property Management, is in a lowincome census tract in Ward 8. City First provided a loan to redevelop this property while maintaining the current rents that are both affordable and subsidized by the DC Housing Authority’s Housing Choice Voucher program. Residents receive benefits from supportive services provided

by Catholic Charities, which include

preparing tenants for the voucher program by assisting with the requisite and often burdensome paperwork.

Catholic Charities also provides ongoing housing case management, life skills education, transportation to medical care, and monthly status check-ins. Addis Property currently manages over 140 low-income subsidized tenants.

CITY FIRST ENTERPRISES CREATED A

10 YEAR

COVENANT ON THE PROPERTY TO ENSURE THAT THE APARTMENTS REMAIN AFFORDABLE FOR LOW-INCOME RENTERS.

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RB5 INVESTMENTS GETTING VETERANS OFF THE STREETS AND INTO HOMES Jason Zeigler, founder of RB5 Investments and its affiliates, had a goal to improve neighborhoods by creating affordable and quality housing while running a profitable company. Through its business, RB5 lowers a barrier to entry to invest in DC real estate by creating opportunities for people who otherwise don’t have the personal assets to participate in wealth building investment activities.

Although the initial goal of RB5 Investments was to create affordable housing for young professionals, Mr. Zeigler changed his focus when he came across a population of individuals who are very deserving of housing but have a difficult time finding it: veterans.

Many housing programs for veterans are structured in ways that can be complicated and confusing to implement.

RB5 simplifies this process and provides affordable housing specifically for

veterans who have experienced chronic homelessness throughout the course of their lives post-service.

RB5 has two affiliates that were created to focus primarily on housing for veterans and throughout the company’s growth, City First has been its primary source of financing.

RB5 Investments takes pride in a holistic approach. In addition to creating quality housing for underserved communities, RB5 often also recruits young adults to help with renovations in an effort to teach them how to invest in real estate and learn other life skills that they can apply in their futures.

“We hope to continue to meet the needs of underserved communities by helping them in a way that is also profitable for us so we can continue to do more,” Mr. Zeigler said. rb5investments.com

“THE IDEA O F T HE COM PA N Y I S T HAT YO U C A N DO W E L L BY DOING GOOD,” M R . Z EI G L ER SA I D. “ T HI S WAY, W E D O N ’ T I G N O R E COMMUN IT I ES T HAT D ESERV E TO BE LO O K E D O U T F O R .”

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RB5 HAS FINANCED

3 UNITS

OF HOUSING FOR HOMELESS VETERANS WITH 6 MORE ON THE WAY!

DESPITE PROGRESS MADE TO DECREASE HOMELESSNESS IN THE REGION, THERE WAS A

6%

INCREASE IN VETERANS EXPERIENCING HOMELESSNESS.

HOUSING ACCESSIBILITY

D O UG L ASS CO MMUNI TY LAND TRU ST BUILDING ON LAST YEAR’S MOMENTUM In 2017, efforts to launch the Douglass Community Land Trust (DCLT) accelerated significantly.

The initiative is an outgrowth of the 2015 Equitable Development Task Force led by Building Bridges Across the River (BBAR) which manages the 11th Street Bridge Park. The Task Force, which included City First, Building Bridges, LISC DC, and WACIF, joined with community residents and stakeholders to create a community land trust that would preserve affordable housing and prevent displacement East of the River.

THE CLT ADVISORY COMMITTEE IS COMPRISED OF MORE THAN

50%

COMMUNITY RESIDENTS.

City First and BBAR formed an Advisory Committee in 2017 comprised of a majority of community residents, as well as representatives from Urban Institute and the DC Fiscal Policy Institute, among others.

The Advisory Committee held six meetings during the year to help shape initial priorities and decision making. The Advisory Committee is receiving strategic leadership and capacity building training to contribute toward their own professional development as well as the future of the DCLT. City First engaged Urban Land Conservancy (ULC), a leading Community Land Trust based in Denver, to consult on the effort. ULC’s engagement includes a comprehensive feasibility study, and a five-year business plan, as well as providing consulting support for initial DCLT acquisitions. The engagement was led by Tony Pickett, who most recently transitioned to DC as the new CEO of Grounded Solutions Network, a key partner of the DCLT. City First worked to initiate pilot acquisition transactions and establish partnerships with local developers in order to meet the goals and objectives of the DCLT initiative. City First engaged the law firm of Klein Hornig, LLP to develop model ground leases for single family and multi-family DCLT transactions to comply with DC law. Klein Hornig has agreed to provide additional pro-bono support on an ongoing basis City First and BBAR facilitated numerous outreach sessions to inform and educate community members, policy makers, and potential partners about the DCLT and shared equity housing as a solution to permanent affordable housing.

CITY FIRST CITY FIRST

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educational INVESTMENTS At City First we pride ourselves in helping youth receive a quality education. We do this by financing the construction and expansion of public, private, and charter school facilities as well as community centers that provide educational enrichment programs for at-risk youth.

IN 2017, WE HELPED CREATE OVER

1,010 NEW EDUCATIONAL SEATS. THIS ADDS TO THE

15,000 SEATS THAT CITY FIRST HAS CREATED AND RETAINED SINCE OUR FOUNDING.

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DISTRICT OF COLUMBIA INTERNATIONAL SCHOOL THE GOLD STANDARD

Currently, DCI serves more than 520 middle and high school students.

Within the next two years, the school will grow to 1,500 students in 6th through 12th grade and graduate its first class of seniors in 2020. Over 52 percent of students at DCI live with poverty and an additional 22 percent are considered to be at risk.

DCI I S A H I G H Q UA L I T Y SCHOO L T H AT C A R E S ABOUT D I V E R S I T Y, B OTH RAC I A L LY A N D ECONOM I C A L LY. OV E R

80% OF STUDE N TS A R E MI N OR ITI E S.

Shaffner partnered with City First for a loan to move DCI to Delano Hall on the Walter Reed Campus, a new mixeduse community in Ward 4. DCI will grow to a larger space that facilitates a better learning environment.

EDUCATIONAL INVESTMENTS

The District of Columbia International School (DCI) is a public charter middle and high school founded in 2014 by parents. The executive director, Mary Shaffner, is a mother of two who believes in a more dynamic approach to education. She founded DCI, along with 11 other parents, after encountering challenges with the District’s public school system.

DCI is a recognized Tier 1 school that enters all its students in the International Baccalaureate (IB) program, the gold standard for international education. In addition to obtaining an IB diploma, students participate in an immersive language program of their choice.

The project involved the renovation and expansion of the approximately 130,000 square foot building into a modern school facility. They added additional space for art and science laboratories, and a gymnasium. The loan enabled DCI to finish renovations and open their new campus in the start of the 2017-2018 school year.

“At our old location we literally could not grow anymore,” said Executive Director Mary Shaffner. “Moving has really enabled us to meet our mission and serve our students.” dcinternationalschool.org

I N A N U N P R E C E DE N TE D C H A R TE R CO L L A B O R ATI O N , F I V E S C H O O L S J O I N E D TO STA R T D C I : D C BI L I N QUAL , E L S I E W H I TLOW STO K E S CO M M U N I TY F R EED OM , L ATI N A ME R I C A N MO N TE SS O R I B I L I N G UA L , M U N D O V ERDE B I L I N G UA L , WAS H I N GTO N Y U Y I N G .

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STU D EN TS I N FOCU S AT DC I N T E R N AT I O NAL S CH O O L “DCI is not only important, it’s hugely critical,” said Michael Musante the Senior Director of Government Relations at FOCUS. “Without it, the children who have gone through intensive language immersion programs would have hit a dead-end.”

The institution’s previous situation was housing 420 students in one building and 100 in another. The new, permanent location will allow DCI to serve more students, and ultimately grow to the building’s capacity. “FOCUS is proud to have supported the opening of DCI.”

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Friends Of Choice in Urban Schools (FOCUS) was a key factor in the bid to open the DC International school on the Walter Reed Campus. As advocates of DC public charter schools, FOCUS engaged the federal government, and through the help of Secretary of the Army, DCI was able to open their new campus. focusdc.org

THER E A R E

120

PU B LI C

CHA R TER SCHOOLS I N WASHI N GTON DC, A FFOR DI N G STU DENTS A N D FA MI LI ES THE POW ER OF CHOI CE IN THEI R EDU CATI ON .

CRISTO REY PHILADELPHIA HIGH SCHOOL THE WORK-STUDY PROGRAM THAT REALLY WORKS

At Cristo Rey Philadelphia, every student works five days per month in a real job, for real wages. Jobs accelerate the students’ development, and their wages fund approximately 60 percent of the cost of their

education. In June 2016, the first class of Cristo Rey students in Philadelphia graduated, and 100 percent of them were accepted into a four-year college and celebrate during their annual “signing day” event.

City First allocated $10,000,000 in New Markets Tax Credits to Cristo Rey Philadelphia for the relocation and construction of a new, 90,000 squarefoot school.

W I TH THI S EXPA N SI ON , THE HI GH SCHOOL WI LL B E A B LE TO SERVE MOR E LOW I N COME YOU TH, PR OVI DI N G EDU CATI ON A L SEATS FOR OVER

EDUCATIONAL INVESTMENTS

This private high school opened in 2012 through a unique partnership of local educators, businesses, and universities. Their mission is to provide a world-class, private education to low income students in 9th through 12th grade.

600 STU DEN TS.

cristoreyphiladelphia.org

LITTLE LIGHTS URBAN MINISTRIES A SANCTUARY OF HOPE IN SOUTHEAST WASHINGTON

Steve Park founded Little Lights Urban Ministries in 1995. Since then he has been committed to providing sanctuaries of encouragement, hope and practical assistance to at-risk children and families in Southeast Washington DC. Little Lights has served more than 900 children through their programs. They have recruited over 2,000 volunteers for weekly tutoring, enrichment trips, mentoring and special events.

In recent years, they have received Catalogue for Philanthropy’s “One of the Best” award and the Georgetown University “Legacy of a Dream” award.

In addition to their daily educational programs, Little Lights provides assistance with diapers, clothing and other resources for families, as well as internships and workforce development programs for teens and adults such as the Clean Green Team.

THE CI TY FI R ST LOA N HELPED LI TTLE LI GH TS SECU R E I TS

6th FACI LI TY SPACE TO ACCOMMODATE A N D SERVE MOR E YOU TH YEA R -R OU N D, B OTH I N A FTER SCHOOL PR OGR A MS A N D DU RI N G SCHOOL B R EA KS.

littlelights.org

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healthier COMMUNITIES

WE ARE PROUD TO CELEBRATE CITY FIRST CUSTOMERS WHO ACCOMPLISH THEIR MISSION At City First, we believe in BY PROVIDING WORLD CLASS ACCESS TOhealthy THE ARTS -- FROM ARTS EDUCATION TO SOCIAL creating communities.

In 2017, we RACIAL helped expand JUSTICE AND HEALING AND UNDERSTANDING. TWO OF two health centers and build WHO RECEIVED THE DISTINCTION OUR CUSTOMERS, STEP AFRIKA a grocery store in a former OF THE MAYOR’S ARTS AWARD FOR EXCELLENCE IN ARTS USDA-designated food desert.

EDUCATION AND THE MOSAIC THEATER OF DC RECEIVING THE MAA FOROUR VISIONARY LEADERSHIP --- PHOTO OF ARI ROTH AND MS. SINCE FOUNDING, CITY HAS ALLOCATED ALIFIRST The Mayor’s Arts Award is presented by the The need for places of belonging has never OVER DC Commission on the Arts and Humanities, been more important as many of the children

$61 million

the most prestigious honor conferred by the District of Columbia to individual artists, teachers, and arts organizations.

IN OUR NEW MARKETS

TAX CREDIT PROGRAM TO

As a validation of arts organizations such HEALTH CARE FACILITIES. as Mosaic Theater of DC and Step Afrika’s commitment to the role of the arts in bringing people together and in building a stronger and more inclusive city.

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and families that Step Afrika embraces each day feel more and more vulnerable and isolated. We stand with our families who share in our mission of creating community. They deserve this recognition and so much more

MARY’S CENTER FOR MATERNAL AND CHILD CARE BUILDING COMMUNITY THROUGH HEALTH CARE

Mary’s Center was established in 1988

by Maria Gomez to serve the Latino and immigrant community. Today, the community health center serves nearly 50,000 people through eight locations in Washington, DC and Maryland.

IN 2 017 M A RY ’ S C E N TE R C R E AT E D 5 0 JOBS AN D SE RV E D OV E R

50,000 P E O PL E . W I T H T H E I R N E W PRO P E R T Y M A RIA G O M E Z P R OM IS E S TO CONTI N U E SE RV I N G T H OS E IN N E E D W ITH TH E I R H E A LT H C A RE S E RV I C E S A ND E D U C AT I O N A L P R OG R A M S.

“We’ve added services that the community asked for to compliment what we already do,” Gomez said.

Now that Mary’s Center has ownership of the property, the organization can decide the best way to use its assets for the community and to expand to serve additional participants.

HEALTHIER COMMUNITIES

In 2017, Mary’s Center grew its services by over 9 percent. The Center opened a pharmacy and a telemedicine business, doubled its capacity to provide mental health services and created new programs for HIV patients, the veteran community and those who suffer from an opioid addiction. They also bought land for a new location in Maryland to triple the participants it serves.

a developer’s plans to build marketrate condominiums threatened to negatively impact the center’s ability to operate. City First provided a critical loan that allowed Mary’s Center to deliver its life-transforming services without disruption.

“It would have diminished our capacity to build community,” Ms. Gomez said.

“The condos would have been sold to a developer who would not care about our families or about what we do.” maryscenter.org

This year Mary’s Center approached City First to help the organization acquire an adjacent parking lot, when

“ W E WA N T P EO P L E TO H AV E TH E A B I L I TY TO M OV E U P T HE ECON OM I C L A D DE R A N D N OT J U ST P U T F O O D O N T HE TA BL E. T H I S I S W H Y I G E T U P E V E RY MO R N I N G .”

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35

RONALD MCDONALD HOUSE HOUSING FAMILIES WITH SICK CHILDREN IN PHILADELPHIA

The Ronald McDonald House Charities (RMHC) of Philadelphia is a beacon of respite, providing accommodations to approximately 800 families annually with children facing serious illnesses and undergoing treatment at Philadelphia hospitals. Families are asked to contribute $15 per night for housing and supportive services, turning no family away due to an inability to pay. In fact, many families have their fees waived or reduced.

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City First allocated $9,500,000 from its New Markets Tax Credit program to RMHC for the expansion of their building at 39th and Chestnut Streets, which is located near several pediatric hospitals.

Last year, more than 5,000 families could not be accommodated due to a lack of space. With the expansion, the Ronald McDonald House will reduce this number significantly. philarmh.org

THE N EW B U I LDI N G WI L L SERVE A N ESTI MATE D

1,900

FA MI LI ES A YEA R , A N D THEI R AVA I LA B LE R O OM N I GHTS W I LL I N CR EASE TO OVER

40,000 PER YEA R .

HARBISON SHOPRITE ENDING A FOOD DESERT IN PHILADELPHIA

This retailer-owned cooperative is comprised of 50 members who own and operate supermarkets under the ShopRite banner.

THE N EW LOCATI ON W I LL CR EATE A PPR OXI MATELY

300

FU LL-TI ME EQU I VA LEN T, U N I ON WAGE J OB S.

This store is also the subject of a study by researchers at the University of Delaware, who will evaluate the store’s effectiveness and impact on the Wissinoming area of Northeast Philadelphia.

HEALTHIER COMMUNITIES

City First allocated $6,000,000 from its New Markets Tax Credit program to Harbison ShopRite to open a new grocery store. While this full-service grocery retailer will provide access to fresh foods, it will also create new union wage jobs for many residents in this low-income community.

This ShopRite Harbison’s new grocery store will end this United States Department of Agriculture designated food desert, which means an area lacks health and affordable foods within a half-mile.

A FOOD DESERT IS AN URBAN AREA IN WHICH IT IS DIFFICULT TO BUY AFFORDABLE OR HIGH-QUALITY FRESH FOOD.

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arts

ENGAGING COMMUNITIES City First is proud to have made significant investments in iconic art institutions because we believe that access to creative spaces is an essential part to making communities healthier.

We are humbled to have the support of the arts organizations that bank with us, confident that their deposits regenerate back into the community that we all serve.

CITY FIRST HAS ALLOCATED OVER

$98 million IN NEW MARKETS TAX CREDITS TO ARTS CENTERS.

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CAPITALBOP BRINGING JAZZ TO DIVERSE AUDIENCES

90

JA ZZ S H OWS, CONTR AC T E D OV E R

300 2,000

Mr. Stewart have presented their renowned DC Jazz Loft Series at the DC Jazz Festival. This summer event brings together world-class musicians with local bands to perform doublebill shows at art galleries, studios, vacant retail spaces and other innovative venues.

Giovanni Russonello and Luke Stewart created CapitalBop.com to help their readers find live music that resonates with them. Their website advertises all the jazz shows going on at venues across the city. “It’s a public service,” said Mr. Russonello. “We’re trying to preserve the historical importance of jazz, which has always been important in DC, but the audience wasn’t always there.”

Given the timing of a major city grant from the DC Commission of the Arts and Humanities, CapitalBop found itself in need of bridge financing to execute their DC Jazz Loft Series.

City First Enterprises provided a short term bridge loan to support the event, which Capital Bop repaid once the grant funds were received.

The group also presents its own concerts, bringing world-renowned innovators like Mary Halvorson and Odean Pope to stages across the city. Since 2011, Mr. Russonello and

Without the loan, CapitalBop would not have been able to host its live series that positively impacts and supports creative youth.

ARTS ENGAGING COMMUNITIES

SI N C E ITS F O U N D I N G IN 2 010, C A P I TA L B O P HAS PR E SE N T E D OV E R

CapitalBop is a DC-based nonprofit founded in 2010, aimed at broadening the audience for jazz — especially among young people. They believe in building a community around music, in order to preserve the cultural significance of jazz in the District while maintaining its dynamic essence.

capitalbop.com

M US IC I A N S TO OV E R

IN ATTE N DA N C E ; A N D PR E S E NT E D OV E R A DOZ E N M AST E R S CL ASS E S F O R YOUTH IN D C P U B L I C SC H OO L S

“ W E KN OW C I TY F I R ST I S O R I E N TE D TO OR G A N I Z ATI O N S L I K E O U R S ” M R .

R U SSON EL LO SA I D. “ W E W E R E R E A L LY EXC I T ED T HAT TH E Y U N D E R STO O D O U R M I SSI ON OF SP R E A D I N G JA ZZ TO PA R TS O F T HE C I T Y T HAT L AC K ACC E SS TO TH E A R TS .”

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STEP AFRIKA! FOSTERING COMMUNITY ONE STEP AT A TIME

City First Bank is proud to have Step Afrika! as a depositor. C. Brian Williams, founded Step Afrika! in 1994 as an exchange program with the Soweto Dance Theater of Johannesburg in South Africa. Since then, it has expanded to become a renowned international touring company that promotes an appreciation for stepping and its use as an educational and motivational tool for youth. The organization accomplishes this through arts education activities, international cultural exchange programs, and traveling performances across the globe.

Step Afrika! is Washington’s largest African American performing arts organization and one of the top 10 African American Dance Companies in the United States. It has received the Pola Nirenska Award for Contemporary Achievement in Dance, as well as the Mayor’s Art Award (MAA) for Excellence in Art Discipline.

The need for non-profit organizations like Step Afrika! has never been more important as many of the children and families that Step Afrika! serves feel increasingly vulnerable and isolated every day. stepafrika.org

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THI S YEA R ,

26,872

STU DEN TS ATTEN DED STEPPI N G WI TH STEP A FR I KA ! I N SCHOOL PER FOR MA N CES A N D WOR KSHOPS,

79%

OF STU DEN TS W ER E MI N OR I TI ES.

MOSAIC THEATER COMPANY OF DC CREATIVE AUTHORS, DIVERSE VOICES

In 2017, Mosaic Theater Company started banking with City First, adding to the growing number of our arts nonprofit customers. Mosaic Theater is dedicated to creating socially-relevant art through the production of plays written by diverse authors. They are known for their extensive community programming and direct address of pressing issues through art. They are a recipient of the John Aniello Award for Outstanding Emerging Theatre Company and the Mayor’s Art Award for Visionary Leadership.

This theater enhances its productions with comprehensive engagement through free before and after show

programming, as well as annual intercultural festivals, such as the “Voices From a Changing Middle East” series, and outreach initiatives, including “Mosaic on the Move,” a no-fee educational tour.

Currently in its third season, Mosaic has multiple productions scheduled, including The Devil’s Music: The Life and Blues of Bessie Smith, an off-Broadway musical celebrating the legendary Bessie Smith.

“ MOSA I C THEATER COMPA N Y I GN I TES I TS

THIRD

SEASON W I TH A SU RE HI T,” SA I D B R OA DWAY WOR LD CR I TI C, R OGER CATLI N .

City First is proud to be aligned with Mosaic Theater’s core value of community engagement. mosaictheater.org

ARTS ENGAGING COMMUNITIES

MOSAIC ON THE MOVE M OSA I C P R OV I D E S R E P R E SE N TAT I O N TO M IN O R I T I E S A N D A C R E AT I V E SPAC E FO R D IV E R S E VO I C E S . TH E “MOSA I C O N T H E M OVE ” I N I T I AT I V E B R I N GS PRO D U C T I O N S O F S HOWS TO FA M I L IE S I N U N D E R S E RV E D CO M M U N I T I E S , M ANY O F W H O M H AV E FELT E XC LU D E D F R O M TH EATE R D U E TO CO N T E N T, LO C AT I O N O R COST. CITY FIRST

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small businesses CREATING JOBS City First is committed to helping small businesses grow and thrive.

We do this through a hands-on customer-centric approach that businesses need to reach the next level. As businesses grow their capacity, more family sustaining jobs are created.

THIS YEAR WE HELPED CREATE

2,264 JOBS THROUGH LOANS AND FINANCING, THIS ADDS TO THE

18,300 JOBS THAT CITY FIRST HAS CREATED AND RETAINED SINCE OUR FOUNDING.

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H2DESIGNBUILD BUSINESS AS A FORCE FOR GOOD

Harvey Yancey, founder and owner of H2DesignBuild, began his construction business as a hobby. His fascination with renovating buildings has led him to more than 15 years of running his own business. H2 generated more than $4 million in revenue in 2017 with more than 100 development contracts awarded to date.

This year, H2’s business grew more than 15 percent. Part of their growth was through the DCHFA’s Housing Investment Platform (HIP) pilot in partnership with City First - the Elvans Road Townhomes in Barry Farms.

These five affordable homes give residents the opportunity to purchase high quality properties in DC. Our shared values of achieving a double bottom line led to this successful partnership that continues to grow.

H 2 DE S IG N B U I L D CONTR AC T E D M O RE TH A N

V E N DO R S

IN C R E AS E F R O M LAST Y E A R .

“We’re creating a path to ownership, which is one of the things that people pride themselves on,” Mr. Yancey said.

“And if we create a quality project that also creates equity, then that speaks volumes in itself.”

In addition to being a leader in the affordable housing community, H2 is one of the few black business owners in the District where only 3% of the money in the local real estate market is earned by black-owned businesses.

“My role is to show that minority businesses can be successful in this type of work environment; building on opportunities of development in the city,” Mr. Yancey said. h2designbuild.co

“ I N EV ER T HOU G H T TH I S WO U L D B E P OSS I B L E ,” SA I D ER R I N SM I T H , “ TH E F I N I S H E S A R E P E R F E C T! ” SM I T H I S A SP EC I A L E D U C ATI O N TE AC H E R AT R O N BR OW N COL L EG E P R E PA R ATO RY H I G H S C H O O L A N D ON E OF T HE N E W H O M E OW N E R S AT E LVA N S R D.

SMALL BUSINESS CREATING JOBS

20 15%

Conscientious that his ‘business matters’, H2 not only produces a profit but also helps to create economic opportunities. Through affordable

workforce homeownership, intentional procurement of vendors, hiring of staff, and mentorship practices, H2’s business vision encompasses multiple facets of a social enterprise.

DEVELOPMENT

CITY FIRST

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H STREET COMMUNITY DEVELOPMENT CORPORATION A BUSINESS THAT BUILDS AND GIVES BACK H Street Community Development Corporation (HSCDC) is a marketminded nonprofit housing developer in DC. As a business leader its mission is to ensure that those in need can find a place to live for a reasonable price, and in doing so, their business model creates jobs for local contractors in the District.

HSCDC purchased 4907 A St SE., utilizing financing from City First to support the acquisition and renovation of a 15 - unit property to maintain lowto moderate-income units in the city.

HSCDC hired local contractors that repaired the common area, rebuilt the laundry room, repaved the parking lots,

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installed smoke detection systems, and made other critical repairs throughout the building. All while maintaining a lower-than-market rents.

THE R EDEVELOPME N T OF THI S B U I LDI N G CR EATED MOR E THA N

HSCDC also established the Global Scholars Foundation, led by Dr. Marcia K. Brown, to provide teens with the opportunity to develop global competency skills by learning the languages and cultures of foreign countries. The culmination of the 18-month program is an educational tour to the countries they have studied.

J OB S W I TH 5 DC B ASED MI N OR I TY OWN ED CON TR ACTOR S.

hstreetcdc.org

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H STR EET CDC GI VE S B ACK THR OU GH I TS GLOB A L SCHOLA R S FOU N DATI ON .

BERISSO LLC

RHOADS INDUSTRIES

SBA LOANS IN ACTION

CREATING UNION JOBS

Aldo Sotil-Berisso has been in the automotive business since 1985 and is the majority owner Pan American Motors. Last year, City First utilized the US Small Business Administration program to support his growth by financing loans for the acquisition of land and building.

Rhoads Industries is a manufacturer of submarine parts and other large metal fabrications for the U.S. Navy. City First allocated $8,000,000 from its New Markets Tax Credit program to Rhoads Industries for the rehabilitation of a Philadelphia Navy Yard building that will enable Rhoads to fulfill their current contract with the U.S. Navy as well as double their long-term production capacity.

Mr. Sotil-Berisso believes in creating jobs for hard working citizens and retaining them in the businesses he owns. With the SBA loan, Pan Am Motors not only preserved existing jobs but expanded to include two new employees to maintain business growth. panammotors.com TH I S N E W P R O P E R TY WILL H ELP RE TAIN

5 JOBS

AN D C R E AT E T WO M O RE JO BS .

rhoadsinc.com

200

N EW U N I ON J OB S W I LL B E CR EATED OVER THE N EXT FI VE YEA R S. AT LEAST 60% OF EMPLOYEES A R E LI VI N G AT LOW-I N COME LEVELS.

SMALL BUSINESS CREATING JOBS

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team city first #COMMITTED

Whether it is through intentionally hiring local students as summer interns or team members teaching financial literacy in schools, City First is committed to the community on and off the clock.

We are proud to boast our entire team of diverse stakeholders from executive management, staff, board members, and shareholders working collaboratively to ensure our efforts are focused on the community first.

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53 COMMUNITY DEVELOPMENT PROFESSIONALS SERVING AND GROWING

CITY FIRST

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CITY FIRST BOARD STELLAR STEWARDS CFBANC CORPORATION CITY FIRST BANK | BOARD OF DIRECTORS Cantwell “Chuck” F. Muckenfuss III, Chairman of the Board; Partner, Gibson, Dunn & Crutcher, LLP (Retired) David J. McGrady, Vice Chairman of the Board Brian E. Argrett, President & CEO, City First Bank; Chairman, City First Enterprises, City First Foundation Phyllis R. Caldwell, Founder, Wroxton Civic Ventures LLC Marie C. Johns, Managing Member, Leftwich LLC Leonade D. Jones, Director, American Funds Mutual Funds Thomas F. Kelley, Group EVP, Commercial Real Estate, SunTrust Bank (Retired) William A. Longbrake, Ph.D, Executive in Residence, Robert H. Smith School of Business, University of Maryland Kathy J. McKinless, CPA; Senior Advisor, Catholic Archdiocese of Washington Obiora “Bo” Menkiti, President & CEO, The Menkiti Group Hassan Minor Jr., Ph.D, Senior Vice President, Howard University (Retired) Ellen Seidman, Visiting Scholar, Federal Reserve Bank of San Francisco Lisa Green Hall, Senior Fellow Beeck Center, Georgetown University (as of 1/2018)

CITY FIRST ENTERPRISES/HOMES | BOARD OF DIRECTORS Brian E. Argrett, Chairman of the Board David J. McGrady, Vice Chairman of the Board, CFBanc Corporation and City First Bank Jaime Bordenave, President, The Communities Group Aurie Hall, Consultant Pat Henriques, Founding Principal, The Henley Group Ellen Lazar, Senior Advisor to the Chairman, FDIC (Retired) Kimberly J. Levine, Executive Vice President and Chief Financial Officer, City First Bank William A. Longbrake, Ph.D., Executive in Residence, Robert H. Smith School of Business, University of Maryland Hassan Minor Jr., Ph.D., Senior Vice President, Howard University (Retired) Cantwell “Chuck” F. Muckenfuss III, Secretary; Chairman of the Board, CFBanc Corporation and City First Bank; Partner, Gibson, Dunn & Crutcher, LLP (Retired)

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CITY FIRST BANK | EXECUTIVE OFFICERS Brian E. Argrett, President and Chief Executive Officer Shaun E. Murphy, Senior Executive Vice President, Chief Credit & Risk Officer Kimberly J. Levine, Executive Vice President, Chief Financial Officer Carl Hairston, Executive Vice President, Chief Lending Officer Mark Kaufman, Executive Vice President Phyllis R. Caldwell

CITY FIRST ENTERPRISES/HOMES | EXECUTIVE OFFICERS Mark Kaufman, President Robin Halsband, Senior Vice President, City First Enterprises Jim Steck, Senior Vice President, City First Homes

NEW MARKETS TAX CREDIT | ADVISORY BOARD Freddie Lewis Archer, President & CEO, Lewis Real Estate Services Karen Kollias, Loan Fund Director, NCALL Research Kevin McQueen, Partner, Brody Weiser and Burns

Because of her careerlong focus on community development, Ms. Caldwell, founder of Wroxton Civic Ventures, was featured in the Washington Business Journal series Women Who Mean Business.

“A quality of life is more than housing. It’s schooling, it’s access to health care,” Caldwell said in her feature.

Henry Posko, President & CEO, Humanim Heather Raspberry, Executive Director, Housing Association of Nonprofit Developers (HAND)

INSTITUTIONAL SHAREHOLDERS Bank of America Calvert Social Investment Fund Balanced Portfolio Capital One, FSB CDFI Fund CitiCorp North America, Inc. City First Enterprises Community Foundation of the National Capital Region

Cooperative Assistance Fund E*Trade Georgetown University M&T Bank National Community Investment Fund PNC New Markets Investment Partners LLC RBC Wealth Management Services

SBP Capital Corporation SunTrust Bank, NA SunTrust Community Development Corporation Wells Fargo Affordable Housing CDC Wells Fargo Bank JPMorgan Chase Community Development Corporation CITY FIRST CITY FIRST

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PARTNERSHIPS SHARED VALUES

Continuing in our tradition as an innovator in community development, engagement and impact, we are proud of our partners who share our values and work with us to achieve positive and sustainable results in the communities that we serve.

Our strategic partnerships are established to strengthen the ecosystem of like-minded institutions and individuals, whether building networks for economic equity and inclusion, environmental justice, or issues of global food security.

In 2017, City First became DC’s first certified B Corp bank, joining the ranks with other certified B Corp businesses, who are driven by the belief that business should be used as a force for good.

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The B Corp movement is led by social enterprises that believe in business as a force for good, balancing impact on people, planet, and profit.

Community Development Financial Institution (CDFI) Certification is a designation given by the CDFI Fund to specialized organizations that provide financial services in low-income communities and to people who lack access to financing.

Opportunity Finance Network (OFN) is the leading national network of CDFIs investing in opportunities that benefit low-income, lowwealth, and other disinvested communities in America.

The Global Alliance for Banking on Values (GABV) is an independent network of banks using finance to deliver sustainable economic, social and environmental development.

The Grounded Solutions Network helps promote housing solutions that will stay affordable for generations.

Community Development Bankers Association (CDBA) is the national trade association of the community development bank sector.

EXPANDING AND STRENGTHENING OUR RELATIONSHIPS PHILANTHROPIC & INVESTMENT COMMUNITIES

COMMUNITY INVOLVEMENT

PRO NEIGHBORHOODS

E*TRADE Financial is committed to investing in communities through a variety of ways such as equity investments, developing non-profit partnerships, skill-based employee volunteers and corporate contributions to improve neighborhoods in Washington, DC.

In 2017, City First Enterprises, in collaboration with Building Bridges Across the River, WACIF, and Skyland Workforce Development, received an award as a part of JPMorgan Chase & Co’s Partnerships for Raising Opportunity in Neighborhoods (PRO Neighborhoods). The funds will support access to capital and technical assistance for minorityand locally-owned small businesses, construction training to local residents for work on Bridge Park and other forthcoming developments and the preservation of affordable housing through the Douglass Community Land Trust.

In 2017, E*TRADE greatly deepened its partnership with City First by not only providing continuing operating support for City First Enterprises but also becoming an institutional shareholder of City First Bank. These investments into the work of City First will enable us to further our impact and serve new customers and communities.

GIVE LIKE A LOCAL

GUIDING CAPITAL TO GOOD ®

Established in 2003, Catalogue for Philanthropy: Greater Washington is the region’s only free, locallyfocused guide to giving and volunteering that highlights the most impactful charities under $3 million. Their goal is to create visibility for charities, fuel their growth, and create a movement for social good in our region, which they are attaining by raising more than $40 million for their network of vetted charities. City First is proud to stand with the Catalogue in this effort.

This nationally recognized industry leader is an information service for the nation’s leading community investors and a depositor with City First Bank. Founded in 2004, Aeris provides ratings, data, and consulting that support investment in underserved communities. They assess the financial risk of Community Development Financial Institutions and other impact-oriented funds and their capacity to achieve their social missions.

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CITY FIRST FOUNDATION SHARED VALUES | INTEGRATED SOLUTIONS FOR A MORE INCLUSIVE ECONOMY City First convened its fourth annual Community Development Finance Conference entitled “Shared Values | Integrated Solutions” featuring an all-star lineup of local, national and global change agents. The goal of the 2017 conference was to bring together community development stakeholders to build integrated solutions toward prosperity in low to moderate income neighborhoods.

The day-long summit was held on Tuesday, October 17, at Sidney Harman Hall, with over 400 attendees. The conference highlighted key strategies, including effective public, private and nonprofit partnership development to address racial inequities, as well as attract investments into the impact economy. cityfirstfoundation.org

FEATURED SPEAKERS: B A R B A R A HA R MA N CATA LOGUE FOR PHI LA N THR OPY MAU R I CE JACKSON , PHD GEOR GETOWN UN I VER SI TY J EN N I FER N I LES DC DEPUTY MAYOR FOR EDU CAT ION HYESOOK CHU N G DC DEPUTY MAYOR FOR HEA LT H & HUMA N SERVI CES ED LA ZER E & CLA I R E ZI PPEL THE DC FI SCA L POLI CY I N STI T U T E

ANNUAL REPORT | 2016

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CRITICAL CONVERSATIONS

2017

SHARED VALUES INTEGRATED SOLUTIONS FOR A MORE INCLUSIVE ECONOMY

PARTNERS

At Sidney Harman Hall, featuring DC Deputy Mayor for Education; and Deputy Mayor for Health & Human Services.

2016

COMMERCE, CULTURE & COMMUNITY FINANCE At Atlas Performing Arts Center, featuring keynote by Andy Shallal, Busboys and Poets.

2015 EQUITABLE ECONOMIC DEVELOPMENT EAST OF THE RIVER At RISE Demonstration Center, featuring keynote by DC Mayor Muriel E. Bowser.

2013

RESURGENCE OF NEIGHBORHOODS At Omni Shoreham, featuring Chris Donatelli, Donatelli Development.

CITY FIRST

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PERFORMANCE CITY FIRST BANK

2017 IMPACT BANK

$32 MILLION 86% DELIVERED IN MISSION ACTIVITIES: AFFORDABLE HOMES CREATED ADDITIONAL CAPACITY FOR LMI CLIENT VISITS JOBS RETAINED OR CREATED

103 2860 279

For detailed financials, please view our Report page online.

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NEW MARKETS

$45.5 MILLION 100% DELIVERED IN MISSION ACTIVITIES:

ADDITIONAL CAPACITY FOR LMI CLIENT VISITS JOBS IN CONSTRUCTION CREATED NEW PERMANENT JOBS CREATED

42,000 1080 455

SNAPSHOT 2017 CITY FIRST ENTERPRISES

WE MEASURE OU R SU CC ESS BY T HE I M PAC T W E H AV E O N OUR COMMUNI T Y. COL L EC T I V ELY, M OR E TH A N 9 0 % O F THIS Y EAR’S INV EST M EN TS HAV E R EAC H E D TH AT G OA L , EXCEEDING TH E C D F I M A N DAT E OF 6 0%.

ENTERPRISES

HOMES

$3.68 MILLION

$3+ MILLION

100% DELIVERED IN MISSION ACTIVITIES: AFFORDABLE HOMES CREATED JOBS RETAINED OR CREATED GREEN IMPACT PROJECT

237 59 1

RAISED TO SUPPORT THE COMMUNITY LAND TRUST HOMES PRESERVED AND UNDER MANAGEMENT AVERAGE PORTFOLIO AFFORDABLE TO AREA MEDIAN INCOME HOUSEHOLDS

243 52%

CITY FIRST

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Lending Where it's Needed Most N

WASHINGTON, DC SILVER SPRING

COLLEGE PARK

EAST OF THE RIVER, SEPARATE AND UNEQUAL BETHESDA

Lending Where it's Needed Most HYATTSVILLE

N SILVER SPRING

DISTRICT OF COLUMBIA

COLLEGE PARK

BETHESDA

COLUMBIA HEIGHTS

CITY FIRST

U STREET

1 8 TH S T N W

$215 MILLION

in impact capital to communities East of the Anacostia River alone.

HYATTSVILLE

SHAW

W

COLUMBIA HEIGHTS

DOWNTOWN

DEANWOOD

E

1 ST ST SE

$103.6

H STREET

U STREET

1 8 TH S T N W

CITY FIRST

MILLION IN LOANS

ARLINGTON

SHAW

HILLCREST

SE

TI

A

D

R

H STREET

S AN

A C

O

ANACOSTIA

+

W

DOWNTOWN 1 ST ST SE

DEANWOOD

MILLION IN NMTC ALLOCATIONS

ALEXANDRIA

HILLCREST

D

R

SE A

CONGRESS HEIGHTS

TI

$111.4

S

ARLINGTON

E

AN

A C

O

ANACOSTIA

HILLCREST HEIGHTS

CONGRESS HEIGHTS ALEXANDRIA

MARQUEE INVESTMENTS: THEARC Anacostia Arts Center Martha’s Table So Others Might Eat IHOP Unity Health Community of Hope Thurgood Marshall Academy Achievement Prep KIPP DC

HILLCREST HEIGHTS

S

SPRINGFIELD

Census Tract Family Income Classification (FFIEC 2016) Loan Location (2017) 7 Low: <=50% of MSA MFI* Location (Pre-2017) S Moderate: 50% - <80% of MSA MFI Location (2017) Census Tract of Family Middle: 80% - <120% MSAIncome MFI Loans Originated 1999-2017 Location (Pre-2017) Classification Upper: >=120% of MSA(FFIEC MFI 2016) Loan Location (2017) Not Classified <=50% of MSA MFI* Loans/NMTCs outside the mapping Location (Pre-2017)Census TractLow:

Loans Originated 1999-2017 7 SPRINGFIELD

Moderate: 50% - <80% of MSA MFI * MSA MFI: $105,700 Location (2017) Middle: 80% - <120% of MSA MFI Location (Pre-2017) Upper: >=120% of MSA MFIO N AV E R A G E Source: Census Census Tract Not Classified Loans/NMTCs outside the mapping

area are not plotted on the map.

area are not plotted on the map.

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OVER

80

* MSA MFI: $105,700

%

6.03% or less 6.04% - 10.48% 10.49% - 16.14%

BALTIMORE, MD

16.15% - 25.57% 25.58% or more

30,000 HOUSES BOARDED UP

Source: Census

BALTIMORE, MD

$83 MILLION in high impact investments to catalyze revitalization efforts in the city.

$24

MILLION IN LOANS

+

$59

MILLION IN NMTC ALLOCATIONS 21 Loans 7 NMTC Allocations originated to date

Percentage of People in Poverty Year: 2012-2016 Shaded by: Census Tract, 2010 Insufficient Data 6.03% or less 6.04% - 10.48%

OF OUR LOANS HAVE BEEN MADE IN LOW TO MODERATE INCOME COMMUNITIES

10.49% - 16.14% 25.58% or more Source: Census

I N A G G R E G AT E

CITY FIRST

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CITY FIRST | 1432 U Street NW, Washington, DC 20009

CITY FIRST

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