TREC In The News

Beginners Guide to TREC Community Fund

Apr 1, 2016 | TREC News

By now you’ve heard inklings about The Real Estate Council’s (TREC) newest social venture, The Real Estate Council Community Fund. This new venture bridges a gap in low-income areas by providing capital to rebuild local economies and communities. Since its inception in 2012, TREC Community Fund has funded more than $1.4 million in commercial real estate projects benefiting low-income families and their communities in Dallas.
So now, you may be wondering…How have I been missing out on all of the action? Let’s get you caught up on the basics.
What is TREC Community Fund?
TREC Community Fund provides loans and technical assistance to organizations in high-need areas of Dallas for similar projects covered by grants through TREC Foundation. TREC Community Fund’s loans have bridged a capital campaign for an indigent clinic, funded renovation of low-income apartments, helped purchase land for a transit-oriented development and more.
TREC Community Fund is a Community Development Financial Institution (CDFI), certified by the U.S. Department of Treasury CDFI Fund.
What does it mean to be a CDFI?
CDFIs are mission-driven financial institutions that create economic opportunity in low-income communities by providing financial services to meet the needs of economically disadvantaged individuals in underserved communities.
As a certified CDFI, TREC Community Fund’s capacity to help our community is enhanced.
What financial products are offered?

  • Pre-development loans
  • Subordinate debt
  • Participation loans
  • Gap/bridge financing
  • Capital campaign bridge loans
  • Construction loans for community facilities, childcare and healthcare facilities

Who are the customers?

  • Nonprofit developers of affordable housing
  • Community service providers
  • Charter schools
  • Childcare providers
  • Healthcare facilities
  • Other nonprofit and for-profit developers who are developing in low to moderate income neighborhoods

How does TREC Community Fund’s lender profile differ from traditional lenders?
Our loans are inherently higher risk by conventional lending standards. Loans are made when there’s a lack of sufficient collateral, but also little repayment risk. We make loans in areas without access to traditional loans. These areas may lack comparable projects to support estimated property value or how the business would perform, especially in highly distressed neighborhoods such as West Dallas or Southern Dallas.
What current loans are in the works?
TREC Community Fund is currently working with an entrepreneur to open a juice bar, market and café in a community retail district in southern Dallas that has not seen new development in more than 40 years. This new neighborhood-based venture will meet the demand for healthy food options in a food desert. Thank you to the TREC members who’ve supported this project in partnership with the Embrey Family Foundation.
How can I get involved?
Offer your expertise to assist our partners with applying for a loan. Join the Development Services Listserv to learn about TREC Community Fund’s volunteer opportunities. Contact me, Maggie Parker, Loan Officer, with any questions.

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