Community Development Real Estate Investment Trusts
FRBSF Community Investments (pdf, 71 kb)
Judd S. Levy, Community Development Trust

A real estate investment trust (REIT) combines the capital of many investors to acquire or provide financing for real estate. A REIT also permits real estate investors to obtain the benefits of a diversified portfolio. A CD REIT acquires debt and equity in projects that satisfy the definition of community development in the CRA regulation. Investments in CD REITs are carried as investments on the investing institution’s balance sheet in accordance with Generally Accepted Accounting Principles (GAAP).