No. Projects do not earn interest or a return on their invested funds. Community Partners applies any earnings to our reserve funds, which has allowed Community Partners to maintain the same fee structure for over two decades without raising fees. The investment objective for unspent project funds is to earn a reasonable return while maintaining short- to intermediate-term liquidity and minimal risk of loss of principal. Community Partners bears the risk of loss and the benefit of returns for project funds regardless of investment performance.
Community Partners' short-term fixed income investments include such things as money market, certificate of deposits (up to FDIC limit) and U.S. Treasuries, with maturities of no more than one year from purchase. Intermediate-term fixed income investments include such fixed-income securities as U.S. Government and Agency securities and corporate notes and bonds, with maturities of no more than three years from purchase.