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FREQUENTLY ASKED QUESTIONS

  1. Who is LIIF?
  2. What is LIIF's mission?
  3. What are LIIF's core values?
  4. What is an example of LIIF's work?
  5. What is a CDFI?
  6. What is a certified CDFI?
  7. Are there other organizations like LIIF?
  8. Where does LIIF get the money it invests?
  9. Does LIIF lend money to individuals?
  10. Does LIIF grant money to individuals?
  11. How can I apply for a child care center grant?
  12. What are LIIF's products and services?
  13. What are LIIF's programs?
  14. What are LIIF's core markets and demographics?
  15. What is LIIF's annual lending volume?
  16. What is your average loan size?
  17. How can I get involved?
Who is LIIF?

LIIF is a nonprofit community development financial institution (CDFI) dedicated to serving low income people and communities. At the core of LIIF’s work is a commitment to alleviating poverty and helping families attain economic self-sufficiency.

What is LIIF's mission?

LIIF is a steward for capital invested in housing, child care, education and other community-building initiatives. LIIF provides a bridge between private capital markets and low income neighborhoods.

What are LIIF's core values?
  • Embracing diversity as a source of success
  • Serving the most impoverished individuals and families
  • Working in partnership with other community developers
  • Maintaining a high degree of excellence in our work
What is an example of LIIF's work?

The Los Amigos and Manzanita Homeownership Developments (see photos below) are located in Windsor, a small community in Northern California. Eighteen families of the Los Amigos project and 20 families of the Manzanita project are working hard and getting their hands dirty in the Self-Help Program, a program through which eligible low income families participate in building their own home, exchanging sweat for equity. "My husband and I have to put in 30 hours per week, which translates to a $35,000 down payment – money we would never have been able to save!" says Cindy Floyd, homeowner. LIIF's YES to affordable housing enabled Burbank Housing Development Corporation to receive a $2.5 million loan to build 38 affordable single family one- and two-bedroom homes. The low income families will save nearly $11.7 million in mortgage payments over a 30-year period and receive the value of $1.3 million in sweat equity – savings that can help pull families out of poverty and towards economic security. “Without this opportunity, we wouldn’t own a home. We can now consider the possibilities of retirement and sending our children to college. We feel like now we are breaking a lower-income cycle that both our families have been in.” Cindy Floyd, Homeowner, Los Amigos Project (Windsor, California)

What is a CDFI?

A community development financial institution (CDFI) is a private sector, financial intermediary (nonprofit or for profit) with community development as its primary mission. A CDFI provides capital for low income communities and individuals who cannot access the services offered by traditional financial institutions such as banks and credit unions. There are six basic types of CDFIs: community development banks, community development loan funds, community development credit unions, microenterprise funds, community development corporation-based lenders and investors, and community development venture capital funds.

What is a Certified CDFI?

The Community Development and Financial Institutions Act of 1994 established the Community Development Financial Institutions Fund within the U.S. Department of the Treasury. The CDFI Fund provides both technical assistance and financial resources to banks, credit unions and community organizations certified as CDFIs. LIIF was among the first certified CDFIs in the United States. CDFIs receive certification when they meet the Fund's eligibility requirements, which include having a primary mission of promoting community development and serving an investment area or targeted population providing development services while maintaining accountability to residents of its investment area through representation on its governing board of directors. For more information, please go to http://www.cdfifund.gov/.

Are there other organizations like LIIF?

Yes. For a list of other CDFIs throughout the United States, please visit: http://www.cdfifund.gov/docs/certification/cdfi/CDFIbystate(4-1-07).pdf.

Where does LIIF get the money it invests?

LIIF gets the money it invests from individuals, religious organizations, banks, mutual funds, foundations, corporations and any other organizations that want to make a secure and sound investment in community development.

Does LIIF lend money to individuals?

No, LIIF does not lend money to individuals for private purposes.

Does LIIF grant money to individuals?

No, LIIF provides child care facilities-related grants to child care centers and family child care providers (in select areas) serving low income children in California.

How can I apply for a child care center grant?

Applications for child care facility-related grants vary. For grants in San Francisco or Alameda County in California, please contact the Child Care Facility Fund at ccff@liifund.org. For Affordable Buildings for Children's Development (ABCD) Fund planning grants in California, please contact Maria Raff at mraff@liifund.org. You may also go to our CONTACT US page for more information. 

What are LIIF's products and services?

LIIF employs four main products to implement its program priorities:  direct lending through its Revolving Loan Fund and Affordable Buildings for Children’s Development Fund, packaged and participation loans, child care grants and technical assistance.

Lending Products:

Pre-development Loans & Lines of Credit  

Available for housing, community facilities, child care centers and educational facilities. Percent of LIIF's capital which is approximately $3.5 million secured. Term of up to 2 years.

Acquisition Loans; Bridge Loans; Construction Loans; Mini-Permanent Loans

 Available for housing, community facilities, child care centers and educational facilities. Maximum loan of $750,000 unsecured. Percent of LIIF's capital which is approximately $3.5 million secured. Term of 10 years for mini-permanent loans, with longer amortization as needed.

Permanent Loans

 Available for housing, community facilities, child care centers and educational facilities. Minimum loans of $500,000 and a maximum of $7 million. Term of up to 30 years, fully amortizing.
What are LIIF's programs?

LIIF was founded with a focus on affordable housing because the lack of affordable housing is a powerful contributor to families’ inability to escape from poverty. LIIF’s Board and staff subsequently broadened the organizational vision to include support for other aspects of community development that are paramount to poverty alleviation. Because no one strategy alone—child care, a home or an education—can lift a family out of poverty, LIIF employs a comprehensive strategy that focuses on all three of these areas, in addition to overall community revitalization, in order to best address the root causes of poverty and promote economic advancement among the poor. 

What are LIIF's core markets and demographics?

LIIF fosters healthy communities by providing a bridge between capital markets and low income neighborhoods. LIIF’s work is concentrated in three core markets: Southern California, Northern California, and the New York Metropolitan Area. These areas comprise nearly 20 percent of the nation’s total poverty population and have some of the highest cost of living in the country. LIIF’s lending is uniquely tailored to address the poorest, most challenged communities that have some of the greatest needs. LIIF also opened an office in Washington, D.C. to grow its public policy efforts.

LIIF serves the hardest-to-reach populations, providing opportunities to help low income families build savings and combat practices or conditions that deplete their life assets. Over 70 percent of families supported by LIIF-financed projects are defined as very low income, and one-third of LIIF’s projects serve special needs populations including battered women, people with HIV/AIDS, the homeless and the mentally ill.

What is LIIF's annual lending volume?

LIIF has increased its annual loan volume more than five times since 1997, from approximately $11.7 million to $67 million in 2008. In FY08, LIIF closed 32 loans to affordable housing and charter school developers in low income communities.

What is LIIF's average loan size (FY07)?

  • LIIF-wide: $935,023

  • Southern California: $747,019

  • Northern California: $787,737

  • New York: $1,737,066

How can I get involved?

Your support means a great deal to us. Please go to DONATE NOW to make a donation. For all other inquiries, please go to CONTACT US.