Everything you need to know about the Community Workforce Fund

CWF is structured as a private placement under Rule 506(c) of Regulation D of the Securities Act of 1933. This means:

• Securities may be publicly advertised, but only verified accredited investors may subscribe.
• NHSGB (100% owner) manages all operations, lending, and investor relations — no third-party fund manager.
• All invested capital is deployed as second-mortgage loans to qualified first-time homebuyers in Pennsylvania.
• Target fund size: $5 million at full deployment.

Complete offering details are available in the Private Placement Memorandum (PPM), which is provided to prospective investors upon request.

The fund is 100% owned and operated by NHS of Greater Berks (NHSGB) — a HUD-certified, mission-driven CDFI with over 40 years of community development work in Berks County and surrounding Pennsylvania communities.

NHSGB's leadership team manages all fund operations: underwriting, loan servicing, investor relations, compliance, and reporting. Because there is no third-party fund manager, there are no management fees extracted from capital.

NHSGB's dual role as both fund owner and operator is a structural advantage — every decision is mission-aligned, not profit-driven.

CWF operates exclusively in Pennsylvania, with primary activity in Berks County and the surrounding communities where NHSGB has deep relationships and operational infrastructure.

Loans are made to first-time homebuyers in low-to-moderate income areas — communities where conventional lending is often insufficient to bridge the down payment gap. NHSGB's local knowledge and HUD-certified status create a lending advantage that out-of-market funds cannot replicate.

The Fund offers three investment classes with floating rates indexed to SOFR (Secured Overnight Financing Rate):

* Based on current SOFR of approximately 4.33%. Rates are floating and will adjust with SOFR. Past performance is not indicative of future results.

The minimum investment is $25,000, applicable across all three classes (A, B, and C).

Investors may commit across multiple classes. For example, an investor could place $25,000 in Class A and $50,000 in Class C for a blended duration and return profile. All commitments are subject to accredited investor verification.

Zero. The Community Workforce Fund charges no management fee.

Because the fund is owned and operated by NHSGB — a nonprofit with its own operational budget — every dollar of invested capital is deployed directly to second-mortgage lending. There is no fund manager extracting a 1-2% annual fee from your capital.

To put that in context: a typical private equity real estate fund charges 1.5-2% annually in management fees. On a $100,000 investment over 7 years, that's $10,500–$14,000 in fees that would otherwise compound in your favor. At CWF, that money stays working.

Investors receive quarterly distributions. Returns are calculated based on the applicable SOFR spread for each investment class, adjusted quarterly as SOFR moves.

Distribution history, payment status, and portfolio details are available in the Investor Portal — a secure, real-time dashboard where investors can track their commitments and earned returns.

Principal is returned at maturity of each investment class (5, 7, or 10 years).

As with any private investment, material risks include:

• Illiquidity: Investment terms are fixed (5, 7, or 10 years). There is no secondary market for CWF interests.
• Credit risk: Borrower defaults could reduce or delay distributions and affect principal repayment.
• Interest rate risk: SOFR-indexed returns move with prevailing rates — yields could decline in a lower-rate environment.
• Regulatory risk: Changes to housing programs, CDFI status, or regulatory requirements could impact operations.
• Loss of principal: Investors may not receive back all of their invested capital.

A complete description of risk factors is included in the Private Placement Memorandum (PPM). Request the PPM to review the full offering documents before investing.

KASH is NHSGB's borrower preparation framework — an acronym for Knowledge, Attitude, Skills, and Habits. Before receiving a CWF second-mortgage loan, every borrower completes this four-part program:

K Knowledge — Financial literacy education covering homeownership costs, mortgage mechanics, and long-term wealth building.

A Attitude — Developing a homeownership mindset: planning for the long term, understanding maintenance responsibilities, and commitment to sustainable ownership.

S Skills — Practical financial skills: budgeting, credit management, and navigating the home buying process.

H Habits — Establishing and sustaining healthy financial behaviors: consistent saving, timely payments, and proactive financial planning.

This pre-investment in borrower readiness reduces default risk and is a core reason why CWF's loan performance is strong. Prepared borrowers make better homeowners.

As of Q1 2026, the Community Workforce Fund has:

• Deployed $3.2 million in second-mortgage capital
• Helped 47 Pennsylvania families achieve homeownership
• Maintained a 65% capital utilization rate (active deployment)
• Operated with a 0% management fee since inception
• Sustained loan performance aligned with CDFI industry benchmarks

NHSGB's 40+ years of community lending history underpins this track record. The CWF portfolio is a direct extension of the same mission-driven lending approach that has characterized NHSGB's work since its founding.

Community Reinvestment Act (CRA) credit is available to qualifying bank investors. Investments in CDFI-operated funds typically qualify under the Community Development category of CRA, which evaluates whether banks are meeting the credit needs of their assessment areas — including LMI communities.

NHSGB's status as a HUD-certified CDFI and its focused deployment into Pennsylvania LMI communities strengthens the case for CRA credit qualification. The Fund's second-mortgage structure directly addresses the homeownership financing gap in underserved markets — a core CRA objective.

Banking institutions should consult their regulatory counsel and CRA officers to confirm CRA credit eligibility for their specific examination context. NHSGB is available to support CRA documentation and provide loan-level data as needed.

For institutional inquiries, contact us via the investor deck or Investor Portal.