Community Workforce Fund LLC

Community Workforce Fund LLC, known as CWF, is a private equity fund based at 213 N 5th St in Reading, Pennsylvania. The Fund was organized with a single purpose: to raise private capital from accredited investors and direct it into lending that helps first-time, low- to moderate-income buyers in Pennsylvania purchase homes. Rather than acquiring property or operating businesses, the Fund functions as a financing vehicle whose dollars are deployed through a nonprofit housing lender into second mortgages that cover the upfront costs that most often keep qualified buyers out of the market.

The Fund is capitalized at $5 million and operates in partnership with Neighborhood Housing Services of Greater Berks (NHSGB), a HUD-certified housing counseling agency and certified Community Development Financial Institution. That partnership is central to how CWF works. NHSGB originates and services the loans, counsels the borrowers and manages the underlying portfolio, while CWF supplies the lending capital and administers the investor side of the structure.

What the Capital Finances

Money raised by the Fund finances fixed-rate, fully amortizing second mortgage loans used for down payment and closing cost assistance. These are the two expenses that most frequently stall an otherwise mortgage-ready household: a buyer may have steady income and acceptable credit, yet still lack the cash needed at settlement. The second mortgage closes that gap and is repaid on a set schedule alongside the buyer's first mortgage.

The borrowers served through this structure are first-time homebuyers at low and moderate income levels, including many households from BIPOC communities and many workers in essential occupations such as teaching, nursing and law enforcement. These are households that often earn too much for some subsidy programs and not enough to save a conventional down payment in a rising market. Because the loans are originated through a HUD-certified CDFI, buyers also receive housing counseling as part of the process, which supports the long-term performance of the loans.

Investment Classes and Terms

CWF is open to accredited investors, with a minimum commitment of $50,000 as the Fund is currently structured. Investors select one of three class terms, each carrying a different return:

• 5-Year Investment Class: quarterly dividends paid at SOFR plus a fixed margin of 0.50 percent, with the option at the end of the term to reinvest or take back principal.
• 7-Year Investment Class: a mid-term option paying SOFR plus a fixed margin of 0.75 percent, with reinvestment or full return of principal available at maturity.
• 10-Year Investment Class: the longest term and the highest margin at SOFR plus 1.00 percent, paid quarterly, with the option at maturity to roll into a new tranche.

Returns float with the Secured Overnight Financing Rate, so the yield adjusts as benchmark rates move, while the margin above SOFR is fixed by class for the life of the commitment.

Quarterly Distributions and Reinvestment

Dividends are distributed on a fixed quarterly calendar: March 31, June 30, September 30 and December 31. Investors may elect to receive distributions in cash or to have them automatically reinvested into the same tranche and class. Reinvestment is the default treatment when no election is made, which means investors who want cash distributions need to indicate that preference. At the end of a class term, an investor may withdraw principal or roll the investment into a newly forming tranche.

Tranche-Based Deployment

Investor commitments are pooled into tranches of $500,000. A tranche activates only once it is fully subscribed, and capital is funded at that point rather than sitting idle while a round fills. The structure is intended to keep deployment efficient, so that dollars move into second mortgage lending in defined blocks that the partner lender can originate against. It also gives investors a clear sense of when their commitment begins earning and when the class term starts running.

Security and Portfolio Backing

Each investment carries NHSGB's promise to pay and is indirectly supported by the organization's performing second mortgage loan portfolio, reported at $18.5 million as of June 17, 2025. That portfolio is a seasoned asset base with a strong repayment record and a low default rate, with portfolio performance reported above 97 percent. The counseling-first origination model used by a HUD-certified agency is a contributing factor in that performance, since borrowers enter homeownership having worked through budgeting, credit and affordability questions before closing.

Leadership

The Fund is led by Stephen T. Gieringer, who serves as Fund Manager of CWF and as Chief Executive Officer of Neighborhood Housing Services of Greater Berks. Under his leadership, NHSGB has grown from roughly $4 million in assets in 2017 to more than $25 million, and the organization has served well over a thousand families. That operating history on the lending side informs how CWF structures its classes, tranches and reporting.

Onboarding and Subscription Process

The subscription process has three steps. An interested accredited investor first completes the Subscription Agreement and Investor Questionnaire through DocuSign. Next, the investor uploads a driver's license and a completed W-9. Funding occurs only after total commitments in the forming tranche reach $500,000. No money is deposited at the questionnaire stage, so investors can complete the paperwork and confirm eligibility before any capital changes hands.

Local Focus and Service Area

CWF operates out of downtown Reading and concentrates its lending impact in Berks County and surrounding Pennsylvania communities. Every dollar placed with the Fund is deployed locally, which means the equity built by borrowers, the property tax base supported by new owner-occupants and the stability associated with homeownership remain within the region rather than flowing to out-of-state capital. For investors who want their fixed-income allocation to have a visible local effect, the structure ties a quarterly return to a specific, measurable activity: households moving from renting to owning in Pennsylvania.

Practical Information

The Fund's offices are located at 213 N 5th St, Reading, PA 19601. Participation is limited to accredited investors, and prospective participants should review the Fund's offering documents, including class terms, risk factors and liquidity limitations, before committing. Investments in a fund of this type are not deposits, are not insured and are not liquid during the selected term, so the choice between the five, seven and ten year classes should be matched to an investor's own time horizon.