$2.0
billion
invested in communities
Low Income Investment Fund Annual Report 2016
LIIF’s work connects people, places and capital to create better lives, a stronger economy and more equitable communities.
When each of us looks out the door of our home, we hope we see a similar picture: a flourishing neighborhood with great schools, stores for fresh groceries and more, a convenient way to get to work and safe spaces for our kids to play. At the Low Income Investment Fund (LIIF), we believe every family should have the opportunity to live in a community that reflects this vision. LIIF helps bring this picture to life by partnering with people to imagine what’s possible, investing in making communities whole and vibrant and empowering every child to unlock her full potential.
Dear Friends:
Dear Friends:
Our country is grappling with difficult questions about persistent social and economic inequality, and about how to bridge the deep ideological divisions this election season has heightened. What can be lost in today’s conversations is that, despite our differences, our collective long-term success as a nation requires that we help all people to live up to their full potential, contribute to our nation’s social fabric and participate in our economy.
Our country is grappling with difficult questions about persistent social and economic inequality, and about how to bridge the deep ideological divisions this election season has heightened. What can be lost in today’s conversations is that, despite our differences, our collective long-term success as a nation requires that we help all people to live up to their full potential, contribute to our nation’s social fabric and participate in our economy.
We at LIIF see the power unlocked by giving people this chance. By providing capital, ideas and leadership, we help people imagine new possibilities, invest in their own success and empower them to shape the places in which they live. This work has helped put more kids in high performing schools, provide more families with affordable homes and give workers greater access to job opportunities. LIIF’s investments in tackling poverty have improved lives in the communities we serve, but today’s challenges require us to think bigger, do better and identify new partners who can help us maximize our impact.
Investing at Scale: This year, LIIF invested more than $200 million to create opportunities for low income communities. These resources served more than 200,000 people, supported 12,000 jobs and leveraged nearly $4 billion in long-term societal benefits.
Advancing Economic and Social Justice: LIIF’s goal is to create opportunities for all Americans, regardless of geography, background, race or gender. We are proud to be a partner in the Strong, Prosperous, And Resilient Communities Challenge (SPARCC), a new $90 million initiative to create more just economic, health and environmental outcomes. Internally, the Board, LIIF executives, and our staff continue to identify ways we can strengthen our capacity to promote social justice and equity.
Leveraging Public and Private Resources: LIIF and our peers have shown that community developers stretch public and private investments, making every dollar count. We are proud to have worked alongside our allies to secure billions of dollars in funding for low income communities through the New Markets Tax Credit, the Capital Magnet Fund and the CDFI Bond Guarantee Programs.
Innovating for Change: LIIF continues to push for new ways to invest in and demonstrate the powerful impact of integrated people and place-based approaches. Our new $6 million “Equity with a Twist” social capital product made its first three investments in integrated community transformation efforts in California, Louisiana and Ohio. LIIF’s Social Impact Calculator now takes our ability to measure success one step further, calculating an internal rate of social return for community investments.
Over the past few years, LIIF has experienced tremendous growth, urged community developers to rethink how they invest in people and places and pushed to create innovative new tools and programs to both expand and deepen our impact. We are excited for you to learn more about the people and places we’ve had the privilege of supporting this year in our annual report. They are why, in a time when the challenges seem greater than ever, we are even more optimistic about the progress we can make together.
Sincerely,
Nancy O. Andrews
President and CEO
Andrew Ditton
Chair of the Board
$2.0
billion
invested in communities
1.9
million
people served
$50.2
billion
in benefits to communities
For more than three decades, LIIF has invested capital to improve people’s lives. Our investments help family budgets, create opportunities for increased lifetime earnings and generate societal benefits that save public dollars. Learn more about our impact.
At LIIF, we believe no idea is too bold. Every day we see our partners on the ground transforming their communities and creating change that once seemed impossible. We work side-by-side with neighbors, community leaders, public officials and the private sector to break down barriers, reconnect isolated neighborhoods and realize overlooked potential. LIIF is proud to be by their side every step of the way.
At LIIF, we believe no idea is too bold.
It’s Friday afternoon and Alvin Boutte – his neighbors call him “Coach” – waves to a group of residents tending to the community garden at East Village apartments. Construction is in full swing in the lot adjacent to Alvin’s home. Soon, a new retail center will open its doors anchored by a supermarket. The new center will improve access to healthy food and signifies a complete turnaround of the Avondale neighborhood in Indianapolis from just nine years ago.
It’s Friday afternoon and Alvin Boutte – his neighbors call him “Coach” – waves to a group of residents tending to the community garden at East Village apartments. Construction is in full swing in the lot adjacent to Alvin’s home. Soon, a new retail center will open its doors anchored by a supermarket. The new center will improve access to healthy food and signifies a complete turnaround of the Avondale neighborhood in Indianapolis from just nine years ago.
In 2007, community members joined forced with The Meadows Community Foundation and Purpose Built Communities to breathe life back into the long-neglected neighborhood. Avondale Meadows now has 800 units of mixed-income housing, a health clinic, a YMCA and three charter schools, which are among the top performing schools in the city. Residents were thrilled with the changes but the one thing they wanted was a local place to buy healthy, fresh food. Currently, they travel two miles for groceries, a long trip on public transit. LIIF provided financing for a new grocery store and retail center, using funds from the national Healthy Food Financing Initiative. The new store will help complete the residents’ vision for the thriving, safe neighborhood they have worked so long to create.
Watch this video to learn more about Alvin and the new, revitalized Avondale Meadows community.
Meadows Community Foundation / Purpose Built Communities / Strategic Capital Partners / BMO Harris Bank / U.S. Department of Treasury Community Development Financial Institutions Fund
“The grocery store is something that we really need for the community. Some of the elderly folks...it makes it very convenient for them to get to the store when they don’t need transportation. It’s right here.”
Alvin Boutte, Community Resident
40,500
square-foot grocery store and retail center located in revitalized, integrative neighborhood
The Strong, Prosperous, And Resilient Communities Challenge (SPARCC) is a new national initiative aimed at creating more just, equitable places to live. SPARCC’s ambitious goal is to influence the institutions, practices and policies that shape our cities and regions. SPARCC has three core lenses – racial equity, health and climate – that will focus the impact of investment capital and technical assistance to magnify outcomes for people of color and low-income people in a way that benefits us all.
The Strong, Prosperous, And Resilient Communities Challenge (SPARCC) is a new national initiative aimed at creating more just, equitable places to live. SPARCC’s ambitious goal is to influence the institutions, practices and policies that shape our cities and regions. SPARCC has three core lenses – racial equity, health and climate – that will focus the impact of investment capital and technical assistance to magnify outcomes for people of color and low-income people in a way that benefits us all.
In a groundbreaking collaboration, LIIF is partnering with innovative, nationally recognized organizations to provide funding, tools and support to help communities meet their goals. SPARCC will amplify locally driven solutions around new catalytic investments in infrastructure and transit from solutions for smart, regional transit expansions to large-scale climate mitigation strategies to statewide health systems transformations. Through SPARCC, community members, local practitioners, policymakers and investors will come together in a powerful new way to provide a platform for all people to shape the places they live.
Enterprise Community Partners / Federal Reserve Bank of San Francisco / Natural Resources Defense Council / Ford Foundation / The Kresge Foundation / Robert Wood Johnson Foundation
Ford Foundation / The Kresge Foundation / Robert Wood Johnson Foundation
“Change is hard but success is contagious. One of the things we talk about in SPARCC is the catalytic moment—that galvanizing spark, if you will—when those at the table see the way forward with clarity and purpose in the belief that we all benefit when everyone thrives.”
Shelley Poticha / Director of Urban Solutions at the Natural Resources Defense Council
$90 MILLION
for more just economic, health and environmental cities and regions
Persistent challenges call for innovative solutions. That is why LIIF leverages new tools, strategies and sources of capital to ensure that each dollar invested has lasting and powerful impact. LIIF is dedicated to finding smarter and more effective ways to make resources go further from creating public-private partnerships to exploring new ways to capture social value.
Persistent challenges call for innovative solutions.
A true feeling of belonging. This mantra exists at the core of BRIDGE Housing’s promise to every community member in the Potrero neighborhood in San Francisco. In a city with one of the largest wealth gaps in the nation, BRIDGE is leading an effort to work with community residents reimagine and transform Potrero’s isolated public housing development into a vibrant, mixed-income neighborhood, where all feel at home.
A true feeling of belonging. This mantra exists at the core of BRIDGE Housing’s promise to every community member in the Potrero neighborhood in San Francisco. In a city with one of the largest wealth gaps in the nation, BRIDGE is leading an effort to work with community residents reimagine and transform Potrero’s isolated public housing development into a vibrant, mixed-income neighborhood, where all feel at home.
True neighborhood revitalization requires a silo-busting approach, long-term commitment from partners and an organization willing to be accountable for change. LIIF partnered with JPMorgan Chase to create a new $6 million capital product, Equity with a Twist (EQT), to support organizations willing to take on this challenging role. One of LIIF’s first EQT investments is financing BRIDGE’s work at Potrero Annex & Terrace. EQT provides low-cost, flexible financing for projects that incorporate mixed-income housing, K-12 education and early learning. In return, projects commit to measuring the impact of their work on resident health, neighborhood safety, child development, education and local market strength. In addition to BRIDGE, EQT has financed the Bayou Development Fund in New Orleans, Louisiana and The Community Builders in Cincinnati, Ohio.
BRIDGE Housing / JPMorgan Chase
“Equity with a Twist represents exciting new thinking about how to catalyze revitalization inclusively and for the long term.”
Cynthia A. Parker / President and CEO of BRIDGE Housing
$6 MILLION
outcomes-driven social capital investment
When state budget delays hit hundreds of California’s early care and education centers, Paula Jeppson, Executive Director of Covina Development Center, discontinued non-essential services and laid off staff. But closing her doors on the 70 children she served, most of whom were from low income families and 25% who have special needs, wasn’t an option. Paula knew the difficulties working parents face when it comes to finding and affording quality child care.
When state budget delays hit hundreds of California’s early care and education centers, Paula Jeppson, Executive Director of Covina Development Center, discontinued non-essential services and laid off staff. But closing her doors on the 70 children she served, most of whom were from low income families and 25% who have special needs, wasn’t an option. Paula knew the difficulties working parents face when it comes to finding and affording quality child care.
Through the Los Angeles Early Care and Education Bridge Fund, LIIF supported Covina Development Center with funding that filled the center's budget gap until her state funding was restored. LIIF’s financing allowed Paula to rehire staff members and continue providing essential infant to pre-Kindergarten care for local families. Paula says, “We’re not simply changing diapers, we’re changing lifetimes. Our students are going to have a better life because of what we do… If it hadn’t been for LIIF’s Bridge funding, it would have been the end of the road for us.”
California Community Foundation / Covina Development Center / First 5 LA / Los Angeles Early Care and Education Bridge Fund
“Child care is really expensive, and as a single mother of three, it’s hard to pay for with one income. Not every place offers this type of opportunity for low-income students. But the school has become a second family to us, and I know my daughters are well prepared.”
Sylvia Amaro / Parent and Teacher at Covina Development Center
$2 MILLION
in family and societal benefits
Remington Row in Northern Baltimore was born of an idea to empower residents in a once economically isolated neighborhood. Beginning with affordable housing for teachers, partners from Seawall Development worked alongside long-time community residents to identify their vision for a prosperous, healthy place to call home. From connecting families to medical services to building a market for new local businesses, the vision soon came to life.
Remington Row in Northern Baltimore was born of an idea to empower residents in a once economically isolated neighborhood. Beginning with affordable housing for teachers, partners from Seawall Development worked alongside long-time community residents to identify their vision for a prosperous, healthy place to call home. From connecting families to medical services to building a market for new local businesses, the vision soon came to life.
LIIF provided New Markets Tax Credits, an important tool for making integrated projects possible, to finance Remington Row. With LIIF’s financing, Seawall Development built a new five-story building that will include 108 units of workforce housing and retail and office space, including a new health clinic operated by Johns Hopkins Community Physicians. The medical facility will host 17 full-time health care providers in addition to social service workers, who will offer additional support for the local community’s unique needs.
Miller’s Square LLC / Seawall Development Company / Enterprise Community Investment / Bank of America / The Calvert Foundation / Maryland Department of Housing and Community Development
“Remington Row is adding new residents and vibrancy to our community without displacing the businesses and residents that make our neighborhood great. It’s contributing to making Remington more walkable and bikeable, and is increasing opportunity for Remingtonians desperate to find work and shop locally.”
Jed Weeks / Neighborhood Resident
160,000
square feet of affordable housing and health clinic space
Positive lasting change must be created by people for their own communities. We know our investments do the most good when we leverage the ideas, assets, abilities and knowledge of the people we serve. We have the furthest reach when we connect neighborhoods to regional and national economies. And, we know our work is the most powerful when it helps people fulfill their own dreams.
Positive lasting change must be created by people for their own communities
“We couldn’t find anyone who would accept our rent check,” Olivia Smith, Founder and Director of Bridges Public Charter School explained. For years, she and her team searched for a long-term facility to house their innovative educational program that connects children and families from a variety of cultures, backgrounds and learning needs. Co-located with community services that enhance life opportunities for families in Ward 5 of Washington, D.C., Bridges operates alongside Briya Public Charter School and Mary’s Center, a federally qualified health center.
“We couldn’t find anyone who would accept our rent check,” Olivia Smith, Founder and Director of Bridges Public Charter School explained. For years, she and her team searched for a long-term facility to house their innovative educational program that connects children and families from a variety of cultures, backgrounds and learning needs. Co-located with community services that enhance life opportunities for families in Ward 5 of Washington, D.C., Bridges operates alongside Briya Public Charter School and Mary’s Center, a federally qualified health center.
Olivia’s students now have a learning space catered to their unique needs. The new campus will enable Bridges to grow by 96 seats and serve Pre-K through 5th grades, 30% of whom will be children with special needs. Briya, which helps adults earn a high school diploma or enter a workforce development program while preparing their children for school success, will add 100 spaces for infant to pre-K care and education and expand its adult programming. In addition, Mary’s Center will lease space to provide access to health and dental care, mental health services and early intervention for infants and toddlers with disabilities to the community.
Watch this video to explore the new facility, supported by nonprofit developer Building Hope.
Bank of America / Bridges Public Charter School / Briya Public Charter School / Building Hope / District of Columbia’s Office of the State Superintendent of Education / Mary’s Center
“I think Briya is a very good opportunity for me, and for many people who don’t speak English…[At Briya] my son is close to me. We can play together, read together. Every day he is happy to come to class, too.”
Fatoumata Sidibe / Adult Student at Briya Public Charter School
25,300
people served
Hot off the press, Community Coalition’s The Movement newspaper is ready for distribution in South Los Angeles. Written by residents for residents, the publication is one of the many ways in which the nonprofit is empowering community members to create, influence and change their neighborhood. For over 25 years Community Coalition has offered a range of community-building programs, including youth development, substance abuse treatment, assistance to foster families and neighborhood events.
Hot off the press, Community Coalition’s The Movement newspaper is ready for distribution in South Los Angeles. Written by residents for residents, the publication is one of the many ways in which the nonprofit is empowering community members to create, influence and change their neighborhood. For over 25 years Community Coalition has offered a range of community-building programs, including youth development, substance abuse treatment, assistance to foster families and neighborhood events.
LIIF used the federal Capital Magnet Fund program to provide financing for Community Coalition to renovate its home base into a state-of-the-art community space. The new building features a large community room where 400 residents convene weekly, a high-tech conference room and a kitchen with the capacity to prepare food for 100 youth each week. The expansion furthered one of Community Coalition's most impactful programs, the South Central Youth Empowered Through Action, which trains high school students to reform South LA schools and improve their community for future generations.
U.S. Department of Treasury Community Development Financial Institutions Fund
Community Coalition believes that people are the engines of change. By engaging residents of all generations, they are creating a movement in the South Los Angeles community that will help build a more prosperous future for all.
2,400
people served annually
| As of June 30 | 2016 | 2015 | 2014 |
|---|---|---|---|
| Assets | |||
| Cash and investments | 42,894,761 | 21,877,891 | 27,532,439 |
| Restricted cash | 31,769,653 | 26,975,337 | 34,194,856 |
| Notes receivable (net) | 284,454,624 | 229,836,878 | 201,480,617 |
| Allowance for loan losses | (8,738,553) | (7,642,972) | (6,908,466) |
| Other assets | 7,997,347 | 9,576,129 | 2,774,080 |
| Total Assets | 358,377,832 | 280,623,263 | 259,073,526 |
| Liabilities | |||
|---|---|---|---|
| Notes payable | 242,868,908 | 169,672,399 | 151,561,713 |
| Funds held in trust | 15,076,380 | 10,002,986 | 17,329,349 |
| Other liabilities | 8,548,246 | 9,694,828 | 8,696,602 |
| Total Liabilities | 266,493,534 | 189,370,213 | 177,587,664 |
| Unrestricted | 52,143,029 | 44,293,272 | 41,808,931 |
| Temporarily restricted | 39,741,269 | 46,959,778 | 39,676,931 |
| Total Net Assets | 91,884,298 | 91,253,050 | 81,485,862 |
| Total Liabilities and Net Assets | 358,377,832 | 280,623,263 | 259,073,526 |
| As of June 30 | 2016 | 2015 | 2014 |
|---|---|---|---|
| Revenue | |||
| Net financing income | 10,422,026 | 8,776,707 | 9,250,713 |
| Technical assistance and consulting | 2,250,678 | 1,759,998 | 1,794,107 |
| Grants and contributions | 4,919,153 | 13,127,122 | 7,003,378 |
| Other | 4,339,652 | 3,093,459 | 3,550,947 |
| Total Revenue | 21,931,509 | 26,757,286 | 21,599,145 |
| Expenses | |||
|---|---|---|---|
| Program expenses | 15,328,304 | 11,755,633 | 14,761,116 |
| Supporting expenses | 5,971,957 | 5,234,465 | 4,317,017 |
| Total Expenses | 21,300,261 | 16,990,098 | 19,078,133 |
| Change in unrestricted net assets | 7,849,757 | 2,484,341 | 6,387,418 |
| Change in temporarily restricted net assets | -7,218,509 | 7,282,847 | -3,866,406 |
| Change in Total Net Assets | 631,248 | 9,767,188 | 2,521,012 |
Head of CRA Business Strategy & Execution, Citi Community Capital
Vice President for Civic Engagement, University of Chicago
Formerly Chief Homeownership Officer, U.S. Department of Treasury, Obama Administration
Retired Partner, Wilmer Cutler Pickering Hale and Dorr
Deputy Director General, Finance and Corporate Services, World Agroforestry Centre
President & CEO, Low Income Investment Fund
Managing Director, JPMorgan Chase
Vice President, Public Health, PATH
Formerly Senior Vice President and Chief Credit Officer, Fannie Mae
President, Purpose Built Communities
Managing Director, Community Reinvestment Act Programs, Urban Investment Group, Goldman Sachs
Executive VP, Director, Corporate Responsibility and Reputation, BBVA Compass
President & CEO, Urban Institute
Formerly U.S. Department of Treasury
Bank of America
Formerly Fannie Mae
JPMorgan Chase
Stewards of Affordable Housing for the Future
Morgan Stanley
Goldman Sachs
BBVA Compass
JPMorgan Chase
Green Dot Public Schools
Uncommon Schools
Purpose Built Communities
Kresge Foundation
Children Now
BRIDGE Housing
Primary Care Development Corporation
Urban Homesteading Assistance Board
Breaking Ground
Bank of America
JPMorgan Chase
MUFG Union Bank, N.A.
Deutsche Bank
HSBC Bank USA, N.A.
Mizuho Bank, Ltd.
Capital One
New York State Health Foundation
Housing Partnership Network
Citi Foundation
Morgan Stanley
Civic Builders
Bay Area Joint Policy Committee
U.S. Bank, Community Development Corporation
LINC Housing
Federal Reserve Bank of San Francisco
BBVA Compass
Rocketship Education
Bank of America
Little Tokyo Service Center
EdTec
AMCAL Housing
San Diego Housing Commission
California Housing Partnership Corporation
California Community Foundation
Mercy Housing California
Wells Fargo
Cross Cultural Family Center
San Francisco Office of Early Care and Education
Mission Economic Development Agency
Family Child Care Association of San Francisco
Friends of St. Francis Day Care
Children’s Council of San Francisco
First 5 San Francisco
Wu Yee Children’s Services
San Francisco Office of Early Care and Education
Parent Voices
City College of San Francisco
Managing Director, SPARCC
IT Director
President & CEO
Director of Financial Planning & Capital Management
VP, Strategic Initiatives & Programs
SVP, National Markets & Capital Solutions
Director, California Region
Director of Accounting
Director, National Lending Initiatives
General Counsel
Managing Director, Federal Policy & Government Affairs
Deputy Director, Northern California Lending
Director, Lending Operations
Director of Communications
VP, Finance & Corporate Controller
Chief Credit Officer
Chief Operating Officer, EVP, Community Investments & Programs
Director, National New Market Tax Credits
Deputy Director, Central Region and Washington, D.C.
EVP, Strategy, Development & Public Affairs
Chief Financial Officer and Chief Administrative Officer
Director of Human Resources
Director, Eastern Region
Director of Development
Director, California Child Development Programs
At LIIF, we believe that everyone should have a chance to succeed in life and every community should be vibrant, healthy and self-sufficient.
LIIF invests capital to support healthy families and communities. LIIF invests in strategies that connect people, places and opportunity: affordable housing, child care, quality education, health and transit-oriented development. LIIF provides loans, grants and technical assistance and works to advance policies that increase economic opportunity and mobility for low income people.