THE KANSAS CITY EQUITY FUND ANNOUNCES COMMITMENT OF NEW INVESTORS
by Amy McDermott 06/19/2007

Erica Dobreff, president of the Kansas City Equity Fund, has announced the commitment of nearly $3 million in investments to the affordable housing fund. Dobreff, who began seeking investors in January, said she has commitments from UMB and M&I banks for $1 million each. Enterprise Bank & Trust has committed $250,000 and Commerce and Great Southern Banks have each committed $200,000.

The Kansas City Equity Fund raises capital on an annual basis from financial institutions and corporations interested in investing in affordable and historic housing in Kansas City and the surrounding metropolitan areas in Kansas and Missouri. The fund invests by purchasing federal and state low income housing tax credits as well as state and federal historic rehabilitation tax credits from for-profit and not-for-profit developers, then allocating the benefits of these credits to its investors.

Dobreff said her goal for 2007 is to raise between $5 and $7 million. “It’s very important for investors to understand that this is an investment for which they will receive tax credits,” she explained. “It is not a charitable donation. “The Kansas City Equity Fund gives banks and corporations an opportunity to help people earning no more than 60 percent of their county’s median income to obtain affordable housing,” she continued.

The fund’s nonprofit status lets it bid more competitively for a limited supply of tax credits and the existence of the Kansas City Equity fund serves to further the development of affordable and historic housing in the Kansas City area.

“The support UMB extends to community and economic development programs is one of the core elements of our civic responsibility,” said Jim Sangster, president of UMB Bank. “We believe the Kansas City Equity Fund brings a tremendous amount of opportunity to citizens who need the support and furthers the enrichment and growth of our community.”

The Kansas City Equity Fund stimulates the development of affordable rental housing throughout the region; revitalizing and stabilizing neighborhoods through