Our vision for affordable housing goes beyond simply deploying capital to developers for building or renovating properties; it’s about strengthening underserved communities to ensure individuals and families thrive. LIIF’s commitment to community is expanding access to more Americans via long-term, transformative investments.
Since 1984, LIIF has invested more than $3.5 billion and served 2.5 million people across 32 states, working to bridge the gap for both individuals seeking affordable housing and developers in need of capital. As a leading community development financial institution (CDFI), LIIF has remained committed to overcoming the unique economic challenges faced by historically underserved communities. For too long, these communities have had limited access to capital and fewer opportunities for developers to create affordable-housing solutions.
Through strategic investments, we have supported a range of affordable housing projects — each designed to address local needs, enhance community resources and foster long-term economic resilience. In FY24 our organization achieved a high-water mark by closing $338 million in new lending. The average loan size was $3.4 million. Part of this lending impact led to our creating and preserving 5,800 affordable housing units.
Our Community-Centered Impact
We’ve strengthened our commitment to racial equity by doubling our investment in the Black Developer Capital Initiative (BDCI). We added an additional $20 million to the unsecured predevelopment revolving line of credit, providing crucial early-stage financing for developers nationwide. With these additional funds, the joint initiative between LIIF and our affiliate, the National Affordable Housing Trust (NAHT), now totals $115 million, directly channeling capital into the hands of developers and empowering them to bring transformative housing projects to life.
Banneker Ventures, a Washington, D.C.-based firm named after Benjamin Banneker, the engineer and surveyor who contributed to the layout of the city in the late-18th century, was provided a $2 million line of credit through BDCI. The funding will support pre-development expenses for the firm’s extensive pipeline in the D.C. area, which includes four projects currently in predevelopment, totaling 1,209 units. The BDCI product reflects a significant shift in LIIF’s approach to risk and underwriting, increasing equitable access to capital. Rather than relying on personal wealth as a determining factor, we now prioritize a developer’s experience and demonstrated success in the industry as the two key criteria for eligibility. After the initiative’s inception in 2021, we 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. This innovative approach ensures that developers are not excluded based on traditional financial barriers but are instead evaluated based on their ability to successfully execute projects.
In Newark, New Jersey, Foya Development Group, led by Adenah Bayoh, secured a $1.5 million line of credit through BDCI. This critical financing provided Adenah with the capital necessary to cover predevelopment expenses for the next phases of a multi-phase construction project in the South Ward community. This partnership is not only a milestone for Foya Development, enabling the firm to expand its footprint in the affordable housing sector, but it also extends LIIF’s impact in New Jersey.
LIIF is also actively participating in the Growing Diverse Housing Developers (GDHD) program, in partnership with Capital Impact Partners and Reinvestment Fund, with funding from the Wells Fargo Foundation. The $40 million initiative has been instrumental in making capital more accessible to developers of color. Juan Barahona, a first-generation American and the founder of SMJ Development in New York City, is one of the nine developers sponsored by LIIF in the GDHD cohort. LIIF provided a $6.85 million secured acquisition loan and a $1 million unsecured predevelopment loan to support SMJ Development’s efforts to acquire a vacant site in Rego Park, Queens, for the development of 120 units of mixed-income housing, including 18 units designated for those formerly experiencing being unhoused. This marks the second loan deployed to SMJ Development, underscoring our continued commitment to supporting the growth and impact of firms who have been historically excluding from accessing capital from traditional lenders.
We have also expanded our presence in the Southeast market by establishing a partnership with Dominion Development Group (DDG), a mission-driven organization dedicated to preserving affordable housing for families relying on Housing Assistance Payments (HAP). DDG’s Crosland, North Augusta and Pickens Gardens apartments are supported by long-term HAP contracts. LIIF took a decisive step by closing $13 million and $6 million secured acquisition loans for DDG, including $9 million in Keeping Homes Affordable funds via our collaboration with Calvert Impact Partners, which enabled a higher loan-to-value ratio. These proceeds were used to refinance loans for the three South Carolina apartment buildings, providing DDG with additional time to secure Low-Income Housing Tax Credits and a HUD loan. As the cost of housing continues to rise — average home prices in South Carolina reached $340,000 in the second quarter of 2024, a 3% increase from the previous year — our efforts to help stabilize and preserve existing affordable housing become even more critical. By supporting DDG’s projects, we are ensuring that families relying on HAP programs remain in stable, affordable homes while creating opportunities for long-term community growth and resilience.
For many of the developers in our portfolio, we hear that without our support their projects would face significant delays or, in some cases, may never come to fruition. These developers often struggle with limited access to critical resources, particularly capital, which is essential for moving their projects forward. By providing timely financing and strategic support, LIIF helps bridge these gaps, enabling developers to overcome financial barriers and complete their projects on schedule. In our Northeast market, we closed a $29.5 million acquisition and predevelopment loan in partnership with the New York City Acquisition Fund (NYCAF) to support Breaking Ground, a New York City-based developer and one of the largest providers of supportive housing in the United States. This marks the second investment LIIF has made in support of the firm, which used the loan to acquire a 19-story, 247,000-square-foot residential building in East Harlem. The building, currently serving as a shelter for asylum seekers, is being converted into 434 affordable and permanent supportive housing (PSH) units. In another partnership with NYCAF, LIIF closed a $13 million loan for the Urban Resource Institute (URI) to support the development of an 84-unit affordable and supportive housing complex. This project will include 51 studio units for domestic violence survivors and 33 units for households earning less than 60% of the area median income (AMI).
Building on our significant investment in affordable housing in the Western Region, LIIF closed a $5.28 Secured Acquisition and Predevelopment Loan for Bernal Heights Housing Corporation (BHHC), a respected developer focused on the Bernal Heights neighborhood of San Francisco. This funding facilitated the acquisition of a 1.1-acre site, which includes a vacant 16,000-square-foot former Big Lots retail building, a 49-space podium parking garage and an adjacent surface parking lot.
Additionally, leveraging over 10 years of impact through the Golden State Acquisition Fund (GSAF), LIIF closed an acquisition and predevelopment loan totaling $2.85 million to American Family Housing, Inc., with 25% of the financing provided by GSAF. The loan was used to support the development of new affordable housing options in Orange County, California, a region with limited affordability.
From charter schools to early care and education facilities to federally qualified health centers (FQHCs), LIIF’s investment in community facility projects is helping create equitable access to essential services, foster stronger, healthier communities and support the long-term well-being of families across the nation. In Washington, D.C., we closed two loans totaling $5.35 million to United Yards 1B LLC, a joint venture between two Chicago-based developers, Blackwood Development Partners LLC and Celadon Partners LLC. Through a co-lending arrangement with the Illinois Facilities Fund (IFF) in Chicago, our loans bridge two grants from the City of Chicago. These bridge loans are part of a larger $17.4 million New Markets Tax Credit (NMTC) transaction. The funds will support renovations of a Back of the Yards neighborhood 23,000-square-foot first floor of a former department store which will house four local businesses: a coffee shop; a bakery; a barbershop; and a clothing store. In addition, LIIF closed a $3.06 Community Facilities Acquisition Loan for So Others Might Eat (SOME), a nonprofit in Washington, D.C. that provides a range of services for individuals experiencing homelessness and housing insecurity. The project included SOME purchasing a building that it will add to its growing “O Street Campus,” where it will house administrative staff and behavioral health counseling services on the same city block as its headquarters, dining hall and new affordable housing development.
Future of LIIF’s Affordable Housing Work
Supply of housing remains a significant challenge across the country, particularly in communities of color, where historical underinvestment has limited access to affordable, quality housing. This is not a new challenge for LIIF. We have stood strong over four decades, supporting developers in creating quality, affordable housing for underinvested communities. The challenges we face today, including rising costs and tightening markets, are familiar to us, but we are well-prepared to continue our work. LIIF has a proven track record of navigating tough economic conditions, and we are committed to ensuring that housing remains accessible for all. As we combat these challenges, we will continue to work alongside developers, community leaders and partners to center their voices as we ensure their dream of stable, affordable housing is within reach.