|The Market Lofts in Covington is one project The Catalytic Fund has helped to fruition.|
The U.S. Department of the Treasury has certified the Catalytic Development Funding Corp. of Northern Kentucky (“Catalytic Fund”) as a Community Development Financing Institution (CDFI). The Catalytic Fund provides financing, technical assistance and development services to execute real estate development projects in the 20 urban census tracts that comprise Northern Kentucky’s urban core – across the five River Cities of Ludlow, Covington, Newport, Bellevue and Dayton, Kentucky.
The Catalytic Fund is the first organization in Northern Kentucky, the 3rd in Greater Cincinnati and the 12th in the Commonwealth of Kentucky to be certified as a CDFI.
Financial institutions that become certified by the CDFI Fund are eligible to apply for the comprehensive services it offers including grants and loans provided by Financial Assistance Awards, allocations of New Market Tax Credits, and bond guarantee programs that are administered annually.
Jeanne Schroer, Catalytic Fund President/CEO explains, “Being recognized as a CDFI is an achievement that will provide more access to important resources in the future.”
To be eligible for CDFI Certification, an organization must be a legal, non-governmental entity that has a primary mission of promoting community development, provides both financial and development services and serves and maintains accountability to one or more defined target markets.
“This certification would not have been achieved without Jeanne Schroer’s leadership and the dedication and hard work of Jeanne and her staff. It expands the foundation for future success” said Chuck Scheper, Chairman of the Board for Bexion Pharmaceuticals and Catalytic Fund Board Chair.
With this certification, The Catalytic Fund joins the CDFI Fund national network of financial institutions formally acknowledged through a rigorous application process to have a community development-based mission that expands economic activity and opportunity. The Catalytic Fund addresses the need for patient capital to support construction and/or rehabilitation of market rate housing and mixed-use real estate projects that are essential to the revitalization of Northern Kentucky’s urban communities.
The Catalytic Fund provides capital to finance real estate development/redevelopment projects via a $10,000,000 investment fund to fill gaps between traditionally underwritten loans, developer’s equity, and project costs. Although the Catalytic Fund expects its capital to be returned, it can be patient and flexible allowing time for the project to succeed. Some of the Catalytic Fund’s recent investments include:
• The Market Lofts – Renovation and adaptive re-use of vacant building for market rate apartments
• Pike Star – Mixed-use historic renovation project creating commercial space for a regional informatics accelerator and mixed income apartment units
• Mutual Building – Conversion of long vacant but historically significant office building to street level commercial space and upper floor market rate apartments.
The Catalytic Fund also provides development services to structure and execute complex real estate transactions such as the property assemblages and lease negotiations resulting in converting two blighted properties to high impact community facilities, the Life Learning Center and the Kentucky Career Center in Covington.
About the Catalytic Fund
The Catalytic Development Funding Corp. of Northern Kentucky (the Catalytic Fund) is a private sector, not for profit organization providing financing assistance and related services for developers of quality residential and commercial real estate projects in Northern Kentucky’s urban cities of Ludlow, Covington, Newport, Bellevue, and Dayton. Its mission is to accelerate Northern Kentucky’s urban renaissance through targeted investments in catalytic real estate development and redevelopment projects in urban neighborhoods. The organization was initiated by Vision 2015 to implement its Urban Renaissance initiative, one of the organization’s “Power of Six” focus areas critical to regional economic competiveness. The Catalytic Fund’s Investors are The Bank of Kentucky, The Carol Ann and Ralph V. Haile Jr. US Bank Foundation, Central Bank, Corporex Companies, Inc., Duke Energy, Fifth Third Bank, First Financial Bank, The Greater Cincinnati Foundation, PNC Bank, and US Bank. For more information, visit thecatalyticfund.org.