A Double Bottom Line Approach To Business
DRI is an investment manager that is also certified by the US Department of Treasury as a Community Development Financial Institution (“CDFI”). DRI was initially formed in 2011 to manage a project sponsored by HUD’s Neighborhood Stabilization Program. The project involved the creation of affordable housing in Detroit through the rehabilitating and sale of twenty-seven vacant homes in the area. Through this program, DRI realized that many of the communities they invested in were lacking access to loans from banks and other mainstream lenders. DRI saw an opportunity to become certified as a CDFI and provide homeownership opportunities to people who were creditworthy, but didn’t meet all the requirements that most lenders needed to originate a loan.
From there sparked several other initiatives designed to address financing issues facing underserved communities today such as DRI’s non-performing mortgage acquisition initiative. This program is designed to preserve homeownership opportunities and stabilize distressed communities through innovative loan modifications and other loss mitigation options that create positive community outcomes. The people and communities that DRI invests in are at the heart of its business model and all management decisions take into consideration a double bottom line approach to business.
What is a CDFI?
- CDFIs are dedicated to providing financial services that serve economically disadvantaged individuals within underserved communities.
What do CDFIs do?
- Support select communities by providing critically needed financing that is unavailable from mainstream financial institutions.
- Promote economic growth in America’s underserved communities by financing businesses, creating jobs, and rebuilding neighborhoods.
Value of CDFI certification?
- Demonstrates DRI’s commitment to providing financial services to meet the needs of economically disadvantaged individuals within underserved communities.
- Provides DRI with access to low cost, long term financing through the Federal Home Loan Bank System and through other CDFI Fund programs.
- Allows DRI to participate in select distressed loan offerings available to smaller investors such as non-profits, minority and women owned business buyers, and other CDFIs.
- Depository institutions have incentives to work with DRI as they qualify for CRA credits by investing in, lending to, or purchasing qualified loans from DRI and other CDFIs.
- DRI can offer expertise and scale to the community development market at a time when federal and local governments want greater participation in distressed loan offerings and additional capital flowing to underserved lending markets.
- DRI is currently raising capital for DRI Mortgage Opportunity Fund, L.P. (the “Fund”), a social impact fund focused on investing in non-performing and performing mortgage loans.
- Alternatively, DRI offers a number of direct investment opportunities designed not only to achieve our community objectives, but also to provide our investors with competitive rates of return managed by an experienced and successful executive team.