Investor FAQ

They are real estate-backed, fixed-income-based, impact investments — an impact-first platform designed to deliver stable, above-market current income while advancing measurable social and environmental outcomes through disciplined real-asset investing. The fund generates current income while supporting affordable and workforce housing preservation.

The bonds are issued by The Proactive Realty Income Fund II, LLC and managed by The Proactive Realty Group, LLC.

A cross-collateralized portfolio of 22 Naturally Occurring Affordable Housing (NOAH) communities across the United States — manufactured-housing communities, distressed multifamily affordable housing, and SRO / workforce (motel) units.

They are offered in reliance on Rule 506(c) of Regulation D under the Securities Act of 1933. Any offer is made only by means of the Fund's confidential Private Placement Memorandum (PPM), Operating Agreement, and subscription documents, which govern in all respects.

The bonds are available only to accredited investors (as defined in Rule 501(a)) and institutional investors. Family offices and institutions seeking durable, real estate-backed yield are a core audience.

Because the offering uses Rule 506(c), the issuer will take reasonable steps to verify accredited-investor status before accepting any subscription. This is handled as part of the subscription process.

Bonds target an annual interest range of 9%–15%, depending on the investment tier, with illustrative cumulative returns of 30%, 45%, or 60% on the larger tiers over their 2–3 year terms. Figures are net of fees and cumulative, not compounded. All targets are illustrative; actual results may differ — see the PPM.

Quarterly, paid at the beginning of each quarter — cash flow from day one.

Each tier's quarterly distribution schedule splits the annual interest into a current portion (paid out during the year) and a deferred portion (paid with the final distribution alongside the return of capital). The exact split varies by tier and term.

No — projected returns are net of fees and cumulative, not compounded.

There are five tiers spanning a $20K minimum up to $2M+:

Tier	Investment	Hold	Interest / yr
Tier 1	$20K – $99K	2 years	9%
Tier 2	$100K – $999K	2 years	15%
Tier 3	$250K – $999K	2 years	15%
Tier 4	$1M – $1.9M	2–4 years	15%
Tier 5	$2M+	3 years	15%

Each tier has its own quarterly distribution schedule (current + deferred). Tier 4 carries a minimum 2-year hold. Final terms are per the PPM.

$20,000 (Tier 1).

Terms run 2–4 years with a 2-year minimum hold and a clearly defined return-of-capital date.

100% of principal is returned at maturity, alongside the final quarterly distribution.

The bonds are illiquid by design. There is no public market; early redemption is at the issuer's discretion under the PPM, and secondary considerations are reviewed case-by-case for qualifying investors. You should be prepared to hold for the full term.

They are cross-collateralized across all 22 NOAH communities — no single asset can impair the bond — with priority repayment ahead of Sponsor equity.

Bondholders are senior to Sponsor equity: senior mortgage debt is most senior and is actively retired; Proactive Sustainable Bonds™ are paid before the Sponsor earns a dollar; Sponsor equity is subordinate and absorbs losses first. You get paid first.

Investor capital is held in an FDIC-insured custody account (via American Deposits / ADM, with custodian banks including Bank of America and Chase) until it is deployed.

No. The interests are not bank deposits and are not insured by the FDIC, SIPC, or any other program. (The FDIC insurance noted above applies only to the bank account where undeployed cash is custodied, not to the bonds.)

Current LTV: <65% portfolio-wide, conservatively leveraged and actively reduced as senior debt is retired.

1.45×–1.65× today, with a stabilized / pro-forma target of ~3.25×+ — a meaningful debt-service cushion.

$26M in affordable-housing assets under management, 647 units across 22 communities.

Assets are acquired for less than it would cost to build them new, providing an inherent value buffer, and are then stabilized through targeted operational improvements.

Proceeds fund senior-lender paydown (lowering LTV, raising DSCR) and operational improvements — renovations, unit activation/turns, infrastructure & utilities, amenities, reserves & contingency, and code compliance.

The portfolio comprises 22 Naturally Occurring Affordable Housing communities (647 units) across seven states: Illinois (Harvey, Riverdale, Phoenix), Indiana (Peru, LaFountaine), Nevada (Las Vegas), South Carolina (Orangeburg, Denmark, Greeleyville), Michigan (Detroit), Ohio (Lowellville), and Alabama (Selma).

Holdings are spread across the Midwest (Illinois, Indiana, Michigan, Ohio), the Southeast (South Carolina, Alabama), and the Southwest (Nevada), so the bond does not depend on any single market. The entire portfolio is cross-collateralized — no single property or region can impair the bond.

The strategy targets supply-constrained secondary and tertiary markets with durable workforce-housing demand, where assets can be acquired below replacement cost and stabilized through targeted operational improvements.

Yes. The investor deck includes an interactive “Nationwide Portfolio Snapshot” map — click any pin for that property's city, state, and unit count. The full property list is available at sustainablebonds.com/Portfolio.

Naturally Occurring Affordable Housing — housing that is affordable without government subsidy, here including manufactured-housing communities, distressed multifamily, and SRO / workforce units.

The portfolio provides housing at rents roughly 20%–30% below market, which also creates structural rent upside (a rent floor, not a ceiling).

Impact is independently verified by Morningstar Sustainalytics, UN PRI, BlueMark, and the Impact Evaluation Lab.

Yes — impact reports, the IMM framework, and scoring are available on request (and via sustainablebonds.com).

25+ years across 14 completed community transformations, with $7.5M returned to debt investors to date and $26M in affordable-housing assets transacted.

The sponsor has delivered debt-based returns of 33% and 49% annualized (a sponsor-capability data point). Past performance is not indicative, predictive, or a guarantee of future results.

• Dr. Canaan Van Williams — Founder & Managing Partner (25+ yrs in real estate investment)
• Greg C. Simonian — Senior Vice President ($4.5B+ raised across alternatives)
• Bob Totaro — VP, Sales (40+ yrs)
• Tony Lawrence — Director of Operations
• Jesse Hollander — Director
• Alicia Galloway — Investor Relations

The securities are unregistered, speculative, and illiquid and involve a high degree of risk, including possible complete loss of capital. You should be able to bear the economic risk of an indefinite investment. Review the PPM's risk factors in full.

Cross-collateralization across 22 communities means no single asset can sink the bond; <65% portfolio LTV, 1.45×–1.65× DSCR (~3.25×+ stabilized), and priority repayment ahead of Sponsor equity provide cushion.

Through the 2020–2021 COVID stress test the portfolio delivered 100% rent collection and uninterrupted distributions. Demand for affordable housing tends to widen in downturns, not narrow.

Quarterly distributions provide cash flow from day one, and there is a clearly defined return-of-capital date. Beyond that, the bonds are illiquid; secondary considerations are reviewed case-by-case for qualifying investors.

(1) Schedule a 30-minute call to discuss your goals and the structure; (2) review the PPM and data room (audited financials, portfolio detail, verified impact reports); (3) subscribe and fund your allocation. Distributions begin the following quarter.

Email invest@sustainablebonds.com, call +1 (206) 686-9293, or book a time at calendly.com/invest-sustainablebonds/30min.

Yes — a third-party due-diligence report is available upon request (centarusps.net).

All income is reported annually on a Form 1099 (not a Schedule K-1). Consult your tax advisor for treatment specific to your situation.

This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security; any such offer may be made only by means of the Fund's confidential Private Placement Memorandum, Operating Agreement, and subscription documents.

The interests described are offered in reliance on Rule 506(c) of Regulation D under the Securities Act of 1933 and are available only to "accredited investors" as defined in Rule 501(a); the issuer will take reasonable steps to verify accredited investor status before accepting any subscription.

The securities are unregistered, speculative, illiquid, and involve a high degree of risk; investors should be able to bear the economic risk of an indefinite investment and a possible complete loss of capital.

Investors are purchasing interests in a private fund, not direct interests in any specific real estate asset, and any collateral or security interests in underlying assets may not be sufficient to avoid losses.

Past performance is not indicative, predictive, or a guarantee of future results. Any targets, projections, or forward-looking statements are illustrative only, based on assumptions that may not prove accurate; actual results may differ materially.

Any performance, return, or valuation information presented may include estimated, unaudited, modeled, or hypothetical results and/or third-party data, each subject to inherent limitations and revision.

The interests described are not bank deposits or obligations of, or guaranteed by, any bank, and are not insured by the FDIC, the SIPC, or any other governmental or private insurance program.