FOR IMMEDIATE RELEASE
In Line with Racial Equity Commitment, Low Income Investment Fund Deploys $20 Million of Financing for Second Round of Black Developer Capital Initiative
Line of credit expands support for the growth of Black-led, for-profit affordable housing developers in markets nationwide
SAN FRANCISCO (Jan. 2, 2024) — The Low Income Investment Fund (LIIF) has announced its second round of financing for the Black Developer Capital Initiative (BDCI) unsecured predevelopment revolving line of credit, doubling its commitment with an additional $20 million to provide early-stage project financing for Black developers across the country. With capital provided by Wells Fargo and Ford Foundation — plus Community Investment Guarantee Pool (CIGP) providing risk mitigation through an unfunded guarantee — this additional financing for the product increases the initial joint initiative from LIIF and its affiliate, National Affordable Housing Trust (NAHT), to a total of $115 million, driving capital directly to Black developers.
“Access to capital shouldn’t be a barrier for Black developers and, today, we are taking a significant step toward that goal by expanding our investment with an additional $20 million,” said President Kimberly Latimer-Nelligan at LIIF. “As our CDFI proceeds with changing our approach to risk and underwriting, we will continue to be a reliable financing source for Black developers.”
The first $20 million deployed in LIIF’s BDCI unsecured revolving line of credit has supported more than 2,600 units of affordable housing in 26 developments across the Northeast, Mid-Atlantic and Southeast through 10 BDCI lines of credit. During the first deployment, the primary focus was on channeling capital to developers in Eastern markets. Now, as the initiative expands, developers from California, Oregon, Colorado and Washington state have the opportunity to access funding. The BDCI product includes a shift in LIIF’s approach to risk and underwriting to increase equitable access to capital, prioritizing a developer’s experience and demonstrated industry success as the main criterion for eligibility in underwriting, instead of personal wealth with no minimum thresholds for sponsor liquidity and net worth.
“The BDCI product has significantly impacted HF3 Group’s ability to increase our staff and capacity to efficiently execute upon our transactions,” said President Harold Foley at HF3 Group, a BDCI participant. “BDCI has totally changed the trajectory of our company, contributing to the growth of our deal queue from $15 million annually to a total, now, that will eclipse $50 million in developments.”
This initiative demonstrates LIIF’s commitment to creating innovative products that provide Black developers with the capital and resources needed to support their work in the affordable housing field.
About the Low Income Investment Fund
Low Income Investment Fund (LIIF) is a national community development financial institution (CDFI), headquartered in San Francisco with offices in New York City, Atlanta, Los Angeles and Washington, D.C., that invests in communities of opportunity, equity and well-being. As a CDFI, LIIF supports projects that have high social value but lack access to traditional financial institutions. Since 1984, LIIF has deployed more than $3.5 billion to serve 2.5 million people in communities across the country from its five offices. An S&P-rated organization, LIIF funds healthy communities by providing innovative capital solutions.