CDFIs cap returns at about 15% and favor ground-up construction, acquisition and rehab, and infill development. They work with minority, first-time, and local developers, not large established firms. Mentorship and public-private partnerships help emerging developers meet their criteria.
For example, they have an ROI cap in some CDFIs. They won't do an ROI greater than 15% because defeats the purpose of neighborhood impact if the investors are getting all the credit, right? So this might be something good for Tina too, going to look at the CDFIs locally to her for the property she's got in Boone there. So they like ground-up construction. They like acquisition and rehab. They like, they love infill development. And then what they want from emerging developers is they want minority developers, first-time developers, local operators, and smaller builders. They don't want to work with the big guys, the big guys typically. So if we have mentorship structures, experience partnerships, and a public-private alignment, they really like that. And so it's because they can then identify with growing the community that way.
