Ecological Revolving Loan Fund
WHAT IT IS
CRSP’s Ecological Revolving Loan Fund (ELF) is a small community loan fund used specifically for acquiring and ecologically retrofitting property in the two block L.A. Eco-Village neighborhood and/or making loans to small green cooperatively oriented businesses started by LAEV members and/or associated CRSP businesses. It is a socially responsible investment (SRI) opportunity that has borrowed and paid back over a 1.5 million dollars in the past 30 years.
WHY LOAN TO THE ELF
Many people are unhappy with their mainstream banks, and with other conventional investment opportunities of stocks, bonds, hedge funds and whatnot. ELF interest rates may be higher than conventional interest rates on cash such as money market accounts, savings and certificates of deposit. Conventional loans, also, are used for who knows what and who knows where, doing damage to who knows who and what and where. ELF lenders know where their money is. They have an open invitation to visit LAEV and see what their money is doing: building a stronger, more sustainable and resilient demonstration neighborhood that has been influencing other sustainable community initiatives locally and worldwide for more than 25 years.
HOW IT WORKS
Individuals or organizations who are already in relationship with CRSP, the Beverly-Vermont Community Land Trust (BVCLT) or Urban Soil/Tierra Urbana (USTU) explore the ELF guidelines noted below. ELF accepts loans starting at $5,000 and up to $100,000. Our current interest rate on loans is 1.5% simple and paid out quarterly or annually. However, on new acquisitions, we may negotiate some higher interest rates, depending on the situation. Lenders to ELF determine the amount they feel comfortable lending and the term of their loan. We encourage potential lenders to talk with other lenders before making a decision to loan. You can designate what project you would like your loan applied to. Loans are paid back from mortgages CRSP currently holds on LAEV properties, other loans coming in, and limited equity sale of LAEV properties.
Currently, CRSP is in escrow on a new development project within the Los Angeles Eco-Village Neighborhood: the corner auto repair shop and café at 3554 W. First Street and Bimini Place. If you are interested in exploring the possibility of a loan, feel free to request a Prospectus on this project from Lois.
CURRENT OPPORTUNITIES YOUR LOAN COULD APPLY TO:
– New property acquisition in the LAEV neighborhood – PREFERRED as of August 2016
– Solar photovoltaic electric installations – 2017
– Street plaza project – 2018
– White House Place Learning Garden – on-going
– Building reserves – on-going
– Eco-retrofitting of the three buildings under LAEV Development organizations’ control (USTU, CRSP, BVCLT) – on-going
– Small green cooperative oriented businesses in LAEV – on-going
– Any of the above
ELF GUIDELINES FOR LENDERS
- Term of Loan*
ELF Loans are for 18 months, 3 years, 5 years or 10 years. Can be reviewed annually.
You select your own term!
- Interest Rates*
Current rate (2016) is 1.5%. Interest on loans is paid quarterly (every three months). Principal is paid at the end of the loan period, unless alternative arrangements are made.
Interest rates may be re-negotiated at the expiration of an initial loan period or upon 60 days notice from CRSP.
- Loan Amounts*
Loan amounts start at $5,000 and go to $100,000. You select the amount that suits you!
- Use of Loan Monies*
Currently, 2016-2017, your loan will be used for the new acquisition of the corner auto repair shop. Our plan is to develop the property into a car-free mixed use permanently affordable environmentally sensitive cohousing community, along with small place based co-op oriented businesses. This development will provide livelihood opportunities for people who live in LAEV. Examples of small green businesses that have been incubated in LAEV or are currently incubating include the Relampago Wheelery, Bicycle Kitchen, Cafecito Organico, the Food Lobby co-op, the LAEV Art Studio, the LAEV Sewing Studio, the LAEV Arts & Crafts store, the Arroyo Seco Network of Time Banks, and the LAEV Family Childcare Service. ELF was also the vehicle for acquiring 50 units of permanently affordable housing in the Los Angeles Eco-Village.
- Loan Security and Payback Sources*
Loans are made to CRSP (ELF) and are not generally recorded as liens against any property CRSP now owns or might purchase. Loans are secured by a loan agreement. Loans are paid back from mortgages CRSP-ELF holds, interest on those mortgages, and other loans coming into ELF. Contact CRSP for details.
- Talk with Others Who Have Loaned*
You are encouraged to talk with other lenders to the ELF, and ask them about their process in making the decision to loan. Contact Lois (213/738-1254) for a phone list or email addresses and phone numbers of other lenders.
- Loan Agreement*
See sample loan document below. Feel free to recommend edits as it suits your needs. Go here for a loan agreement, you can fill out on-line and return.
- Where to Send Checks*
Checks should be made out to CRSP/ELF and sent to: 117 Bimini Place #221, Los Angeles, CA 90004. Electronic transfers can also be arranged.
DONATION POSSIBILITIES: And remember, if you’d rather make a tax deductible contribution, the family of LAEV development organizations–CRSP, the Beverly-Vermont Community Land Trust and the Urban Soil-Tierra Urbana Housing Co-op–are all 501.c.3 tax exempt corporations. Consult your accountant or tax attorney to determine what could be a major tax savings when you donate cash, stocks, bonds or property to a 501.c.3 corporation.
TEMPLATE FOR THE ELF LOAN AGREEMENT:
LOAN AGREEMENT BETWEEN CRSP-ELF AND __________________________
I, _________________________, (lender), agree to loan $ _________to CRSP’ Ecological Revolving Loan Fund (ELF) for use in (check one or more):
_____ To acquire the new property at 3554-3560 W. First Street for a future car-free, mixed use, ecologically sensitive, cooperative cohousing development.
_____ The eco-rehabilitation of the Eco-Village properties at 117 Bimini Place, 127-133-1/2 Bimini Place, and 140 Bimini Place.
_____ To pay back current lenders at the expiration of their loan periods.
_____ To provide seed capital for new green business development within Eco-Village.
_____ Any or all of the above.
_____ To hold in reserve for a potential payment on my share loan for membership in the US/TU Co-op or the future Cohousing community (interest rates on this option will be lower than 1.5%).
Term of the loan is (circle one or more):
__3 months 1 year __2 years __5 years __Other __To be reviewed annually
The interest rate shall be 1.5% at this time and will be on a (check one)
_____ simple interest basis, _____amortizing basis, ___________ negotiated basis
CRSP shall pay me the interest or amortizing amount every three months starting at the end of the first full quarter after the loan has been deposited by CRSP. If the loan is for $5,000 or less, the payment may be paid annually at the start of the quarter closest to when the loan was deposited by CRSP. I may choose to negotiate other payment options with CRSP-ELF to be included on this agreement.
At the end of the initial loan period on interest-only loans, the full principal will be due from CRSP along with the interest payment. Or at the end of the initial loan period, also, I (the lender) will have the option of renewing the loan on a simple-interest or amortizing basis at an interest rate and term to be determined at that time.
In the event that CRSP decides to pay back the loan in part or full prior to the full term of the loan, there will be no interest penalty. In the event that I (the lender) must have my loan paid back prior to its due date, arrangements may be made with CRSP without penalty to me. Generally between 30 and 90 days notice is required for early paybacks, depending on the size of the loan.
Agreed: Lender Name, address, phone no., email address, date: t
Print Name Signature Date
Agreed by CRSP Signature Date
Lois Arkin, Executive Director, CRSP Corporate Treasurer
117 Bimini Pl., #221, Los Angeles 90004, 213-738-1254, firstname.lastname@example.org, www.laecovillage.org