Annual 2009

The Community Preservation Corporation

Green Initiativesin a Pivotal Year

2009 Annual Report

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A newly constructedve-story buildinghas been developedby CPCR in ProspectHeights, Brooklyn.Located on SterlingPlace, this buildingoers an intimateenvironment witheight residences, all owhich eature granitecountertops, stainlesssteel ENERGY STAR

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appliances and customcabinetry.

CPC’s Green Financing Initiative 2Bronx & Manhattan 3Brooklyn, Queens, Staten Island & Long Island 5Hudson Valley 7 Albany & Eastern New York 9Initiatives and Programs 10Syracuse, Central New York & Rochester 11Bualo & the Southern Tier 13New Jersey 15The New Domino 16CPC Resources, Inc. 17Financials 18Lending Areas 20Directors & Ofcers, Regional Sta,Mortgage Committees 22Participating Institutions 24

We want to extend our thanks to our departingdirectors rom CPC’s Board: Len Simon, Anne Pollack,Mariel Donath and Mark Walsh. Len has servedCPC’s Board rom 1998–2009, serving as Chair rom2005 through 2006; Anne served on the Board rom2001-2009 and was Chair rom 2007 through 2008;Mariel served on CPC’s Board rom 1997-2009; Markserved on CPC’s Board rom 2005-2008. Len, Anne,Mariel and Mark have provided CPC with outstandingservice, commitment and leadership, which haveguided both the company and its management. Theyhave contributed greatly to CPC’s legacy.

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PC continues to aggressively respond to the ongoing economic challenges in the communities weserve. Our rst priority is to complete the projects under construction so they can provide sound andaordable housing. Working closely with our developers and government partners we are using avariety o tools to convert several projects planned as or-sale housing to rental projects. Other projects, bothor-sale and rental, are benetting rom lower interest rates, coupled with improving end loan products ormoderate-income buyers.Demand or CPC’s nanced and developed housing remains strong in New York City, but less so in UpstateNew York and New Jersey. To cushion against possible losses, particularly in the latter areas, we have under-taken strong measures to build sucient reserves. We have reduced our expenses and restructured our busi-ness to closely monitor properties where we anticipate problems.We have also ound new ways to serve our communities. In September o this year, working with our sponsoring banks and insurance companies, City andState pension unds and Freddie Mac, we launched a$1 billion program, which will be described extensively inthe ollowing pages, to nance the retrot o older occu-pied apartment buildings in New York State. Our goal isto improve their energy eciency by a minimum o 20%and demonstrate how the mortgage nance system can beadapted to reduce energy usage in multiamily buildings.In this recessionary era, we are looking to purchasedeaulted properties and reposition them to provide soundand stable aordable housing. Lower purchase prices orproperties can in part replace the decline in public subsi-dies to provide aordable housing. Both our nancing andequity resources are being directed to this eort.Despite these dicult times, we look orward to makingprogress in the entitlement o the Domino project. Thisproject, with its planned 660 units o aordable housing, will be a model or the development o mixed-income communities.Our ability to meet these challenges rests on the strength and commitment o our employees who havedemonstrated extraordinary character and abilities during this dicult period. Likewise, CPC’s Board hasprovided great leadership and is ully engaged in guiding our company. With our strong partnership withgovernment and our sponsoring nancial institutions, we are condent in our ability to continue to serve thecommunities where we operate.

Sincerely,Michael Hegarty Michael D. LappinChair

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President & Chie Executive Ocer

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To Our Members