Exhibit (h)(2)

                       WAIVER AND REIMBURSEMENT AGREEMENT

     Agreement ("Agreement") dated as of the 28th day of September,  2000 by and
between The Community  Reinvestment  Act Qualified  Investment  Fund, a Delaware
business trust and a registered  investment company under the Investment Company
Act of 1940, as amended (the "Trust"),  and CRAFund  Advisors,  Inc., a Delaware
corporation (the "Adviser").

                                   BACKGROUND

     The Adviser serves as investment adviser to the Trust's existing investment
portfolio (the "Fund") pursuant to an Investment  Management  Agreement  between
the Adviser and the Trust dated as of June 1, 1999.

     The parties to this  Agreement  wish to provide for an  undertaking  by the
Adviser to limit investment  advisory or other fees and/or reimburse expenses of
the Fund in order to improve the performance of the Fund.

                                    AGREEMENT

     THEREFORE,  in consideration of the foregoing,  the parties intending to be
legally bound hereby, agree as follows:

     The Adviser  shall,  from the date of this  Agreement  until May 31,  2003,
waive all or a portion of its investment advisory fees and/or reimburse expenses
in amounts  necessary  so that after such  waivers  and/or  reimbursements,  the
maximum total operating expense ratio of the Fund shall not exceed 1.00%.

     The  Adviser  acknowledges  and  agrees  that it shall not be  entitled  to
collect on or make a claim for waived fees or reimbursed expenses at any time in
the future.

     This  Agreement  shall be governed by and  construed  under the laws of the
State of  Delaware,  without  regard to its  conflict  of law  provisions.  This
Agreement may be executed in one or more  counterparts and all such counterparts
will constitute one and the same instrument.

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                                                                  Exhibit (h)(2)

     IN WITNESS  WHEREOF,  the parties hereto have caused this  instrument to be
executed by their officers  designated  below as of the day and year first above
written.

THE COMMUNITY REINVESTMENT ACT                    CRAFUND ADVISORS, INC.
QUALIFIED INVESTMENT FUND


By: /s/ David A/ Zwick                            By: /s/ Todd J. Cohen
    --------------------                              --------------------
Name: David A. Zwick                              Name: Todd J. Cohen
Title: President                                  Title: President

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