4.07.2006 ET

(CSRwire) COLUMBIA, Md.- Enterprise Community Partners and Deutsche Bank today launched the Enterprise Social Fund, an innovative investment fund to raise and invest $15 million from socially responsible corporations and affluent individuals that have not traditionally invested in efforts to revitalize low-income communities. The fund will primarily benefit community-based organizations engaged in the development of affordable housing.

The Enterprise Social Fund offers investors a unique opportunity to invest directly in community development, a thriving industry primarily capitalized by banks and other financial institutions along with government. Over the next five years, the fund will help finance the construction or rehabilitation of more than 3,000 homes for low- and moderate-income families while providing near-market returns to investors.

Enterprise, which works to provide low-income families with affordable housing and rebuild communities, must raise flexible capital to enable its partners - proven community-based organizations - to acquire sites and buildings for development. The Enterprise Social Fund is designed to help satisfy that need.

"The Enterprise Social Fund provides an opportunity for corporations and individual investors with no prior experience in community development but with an appetite for financially sound, socially responsible investments to help capitalize the community development industry, which leads the nation in providing affordable housing and building communities of choice for low- and moderate-income people," said Enterprise Community Partners Chairman and CEO Bart Harvey. "We expect the Enterprise Social Fund to attract new private investment to the vital work of building homes, restoring neighborhoods, creating jobs and revitalizing cities - work that benefits all Americans."

"Enterprise's partnership with Deutsche Bank shows that investments can be financially responsible as well as socially responsible," Harvey added. "Deutsche Bank's commitment to socially responsible investment is exemplary."

Deutsche Bank has arranged the $15 million fund to attract corporate investors who recognize the value of investing in America's communities while being prudent in how they deploy corporate resources.

"We have a long history, and a great deal of confidence, in the work of Enterprise. The fund provides us with the ability to share the opportunity to invest in America's communities with other corporations and wealthy individuals who may not be as familiar with the outstanding performance of the community development industry." said Gary Hattem, Deutsche Bank Managing Director of the Community Development Finance Group.

The fund is expected to attract $12 million from institutional investors and $3 million from affluent individuals. Deutsche Bank is guaranteeing 20 percent of the fund's total capitalization. In addition, the fund will set aside 1 percent of the principal for loss reserves. The fund will be liquidated at the end of five years.

Enterprise Community Loan Fund, Inc., a supporting not-for-profit entity of Enterprise Community Partners, Inc., will manage the Enterprise Social Fund. Enterprise has placed more than $300 million over the last 23 years in loans for pre-development, acquisition, rehabilitation and construction of affordable housing and community facilities, with an average annual loan loss rate of less than 1 percent.

The Enterprise Social Fund credit committee will make loan decisions, which will be overseen by an advisory board of distinguished business professionals and experts in community development finance.

Community development has been a catalyst for rebirth in many of the nation's urban neighborhoods. Community development corporations, which have their origins in the 1960s, often have been the first developers in low-income neighborhoods. Their early successes have encouraged private developers to enter those neighborhoods. Community-development corporations nationwide build more than 60,000 affordable homes and apartments each year.

The need for affordable housing remains strong. The 2003 American Housing Survey, conducted by the U.S. Census Bureau, estimates more than 12 million U.S. households spend more than 30 percent of their income on rent and utilities, leaving little for other necessities such as food or health care.

Deutsche Bank With Euro 992 billion in assets and 63,427 employees, Deutsche Bank offers unparalleled financial services in 73 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.

Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private and business banking franchise in Germany and other selected countries in Continental Europe. www.db.com

Enterprise Community Partners is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For more than two decades, Enterprise has pioneered neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested $7 billion in equity, grants and loans and is currently investing in communities at a rate of $1 billion a year. Visit www.enterprisecommunity.org to learn more about Enterprise's efforts to build communities and opportunity, and to meet some of the half a million people we have helped.

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