The Community Improvement Fund was incorporated as a non-profit corporation in June of 2006 with funding from the Metropolitan Water District to follow in July 2007. When Metropolitan's Board of Directors approved the land fallowing agreement, they also allocated $6 million for community improvement funds for job creation, business development and to lessen the burden of government. To date the CIF has loaned over $6.25 M for business development and job creation and another $1.2 in public and non-profit grants to "lessen the burden of government". Today the CIF is worth over $7.9M.
[Please see About Us for the historic background on how the Community Improvement Fund was established.]
Metropolitan and PVID entered into a 35-year agreement calling for a land fallowing (inactive farming), crop rotation and water supply transfer program that commenced in January of 2005 and will continue through July 21, 2040.
Known as the “Palo Verde Land Management, Crop Rotation, and Water Supply Program”, local farmers were compensated on a voluntary basis to temporarily fallow up to 29% of their lands when MWD placed a request for water.
The fund is designed to be revolving in nature. As loans are repaid, new loans can be awarded. As grant money is distributed, it can be replenished from other outside sources whenever possible. It is the objective of the CIF, as the Administrator of the funds, to continue cycling these resources again and again in order to continue to promote economic growth throughout the Palo Verde Valley for decades to come.
Ideally the CIF prefers to provide what is known as "gap financing" where the potential loan recipient and a banking institution each provide a portion of the project cost. The CIF funds the remainder.
Likewise grants are designed to provide matching dollars aimed at lessening the burdens of government and/or to promote social welfare in the Palo Verde Valley.