Cleveland Development Advisors Community Reinvestment Fund Inc

What it reported doing in 2024

Management Services: CDA-CRF provides management services to Cleveland Development Advisors, Inc. (CDA), an affiliate of the Organization. CDA is a real estate and business development finance organization that invests privately funded capital and New Markets Tax Credit (NMTC) allocations into catalytic projects designed to advance economic and community development projects throughout Cleveland. CDA's investment funds include i) Cleveland Development Partnership II LP (CDP II), ii) Advance Cleveland Development Fund, LLC (ACDF), Opportunity CLE Loan Fund, LLC (OCLF) and iii) Cleveland New Markets Investment Fund II, LLC (CNMIF II) (collectively, CDA's Investment Funds). CDP II, ACDF, and OCLF provide a source of private sector financing for developers, owners and operators of significant real estate projects that are located in low income communities and/or serve low income persons within Cleveland, Ohio and Cuyahoga County, Ohio, in order to promote community and economic development and advance community priorities. CNMIF II is a community development entity (CDE) certified by the U.S. Treasury's Community Development Financial Institutions Fund (CDFI Fund) that has received a total of $340 million in NMTC allocations since 2007. CNMIF II provides investment capital for low-income communities and low-income persons consistent with the NMTC Program and CDA's priorities.Since 1989, CDA's Investment Funds have invested more than $586 million in 180 projects that have resulted in over 8,100 new housing units and 14.9 million square feet of commercial space, which have generated over $4.4 billion of total development. Since 1989, CDA's Investment Funds have created over 19,400 permanent construction jobs.The investments made by CDA's Investment Funds in 2024 include the following: Cleveland Institute of Art Interactive Media Lab (CIA IML): CNMIF II provided $7 million of Federal NMTC allocation paired with $1 million of State of Ohio NMTCs to finance the Cleveland Institute of Art (CIA) Interactive Media Lab located at Cleveland Midtown Collaboration Center, which is a flagship economic and community engagement project sponsored by The Cleveland Foundation. The $12.7 million Interactive Media Lab (IML) will provide cutting-edge training in virtual reality (VR), augmented reality (AR), game design, and extended reality (XR) film production. The IML features a dedicated XR film studio and is designed to be a resource for CIA students, local businesses, and community residents. The IML aims to foster artist and designer driven content creation, promote discourse on interactive media, and encourage young people to explore careers in these growing fields. CNMIF II previously provided $10 million in federal NMTC allocation to The Cleveland Foundation for the construction of the Midtown Collaboration Center, which is located next to The Cleveland Foundation's new headquarters in Midtown neighborhood. These two buildings represent the initial phase of a larger 12-acre civic district planned for the area.Cleveland Kitchen: CNMIF II provided $10 million Federal NMTC allocation to Cleveland Kitchen, a national leader in fermented foods. Cleveland Kitchen is consolidating and significantly expanding its production facility at the Central Kitchen Food Hub on Carnegie Avenue in Midtown neighborhood. Founded in 2024 by Shaker Height natives, Cleveland Kitchen has grown rapidly, distributing its sauerkraut, kimchi, culinary sauces, pickles, and picked red onions to over 20,000 stores nationwide. CNMIF II's NMTC allocation supported the expansion by adding new production lines and creating an additional 30,000 square feet of insulated cold storage. The project will create 80 new jobs and retain 45 positions in Cleveland.Urban Community School Athletic Center: CNMIF II provided $8 million in Federal NMTC allocation paired with $1 million of State of Ohio NMTCs to finance Urban Community School's new state of the art athletic center at its Ohio Ci

Financial Efficiency

• Mission deployment rate: 49.1%; rating input score 49
• Program expense ratio: 94.2%; rating input score 94
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 92.3%; rating input score 92; 10th percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: 96.6%; rating input score 97; 31st percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Scored; rating input score 0

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 7 of 7 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: NotApplicable
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 46.7%; rating input score 91; 91st percentile among comparable filings
• Total-asset coverage ratio: 12.49; rating input score 93; 93rd percentile among comparable filings
• Liabilities to assets ratio: 0.44; rating input score 24; 24th percentile among comparable filings
• Officer compensation ratio: 0%; rating input score 91; 91st percentile among comparable filings

Growth

• Program expense growth: 13.4% per year; rating input score 100; 74th percentile among comparable filings
• Revenue growth: 14.8% per year; rating input score 100; 81st percentile among comparable filings
• Asset growth: 26.4% per year; rating input score 100; 91st percentile among comparable filings