All solutions start with a connection
All solutions start with a connection
Every community has assets – whether it’s the long-time residents who know everyone on the block, kids headed to their first day of school or the entrepreneurial spirit of local business owners.
For more than three decades, the Low Income Investment Fund (LIIF) has invested in the potential of people and places. We believe that working alongside neighbors and community leaders can lead to real, positive change for everyone. LIIF connects capital, partners and ideas to spark investment and empower communities to shape their own future.
Dear Friends:
Dear Friends:
In today’s environment, it can feel like we are moving from crisis to crisis. From natural disasters to the latest news headlines, it is hard to focus on the long view and to be reminded that there are neighbors, friends and families behind every story. We believe it is more important than ever to rededicate ourselves to our mission of poverty alleviation and continue to make long-term progress on issues like homelessness, displacement and income inequality. To achieve this, we must extend a...
In today’s environment, it can feel like we are moving from crisis to crisis. From natural disasters to the latest news headlines, it is hard to focus on the long view and to be reminded that there are neighbors, friends and families behind every story. We believe it is more important than ever to rededicate ourselves to our mission of poverty alleviation and continue to make long-term progress on issues like homelessness, displacement and income inequality. To achieve this, we must extend a hand, engage with others and come together to build and sustain safe, prosperous communities for all Americans.
LIIF’s investments are a reflection of our deeply held belief that real community transformation happens through partnership and collaboration. LIIF’s innovative capital resources serve as tools to support local leaders, ideas and people making change from the ground up. Since our founding, we’ve invested $2.1 billion – half of that was invested in just the last five years. We have leveraged $10 billion in other resources to build affordable homes, expand access to quality child care and schools, improve health outcomes and create more than 130,000 jobs across 31 states. This year, we’ve made significant strides in transforming communities together.
Justice and Equity: LIIF helped to lead the community development field in a paradigm shift that emphasized investing in both people and places. Now, we recognize that we must also add racial and gender equity into our vision and our practice. From launching the Strong, Prosperous, And Resilient Communities Challenge to revising our program investment strategies, LIIF is putting social justice at the heart of everything we do.
Expansion to the Southeast: Building on our previous investments in New Orleans, Atlanta and Memphis, LIIF is expanding our presence in the Southern U.S. We are committing both staff and resources to support community-building strategies in this region, including hiring our first team member based in Atlanta and launching a new program to expand educational opportunities in Tennessee.
LIIF Impact Note: We believe more people should be able to use their resources to invest in their community, while also earning a solid return. That’s why this fall we launched LIIF’s Impact Note, a simple, powerful way for everyday investors to expand economic opportunity and build communities where everyone can thrive.
Recently, while browsing an old LIIF annual report, we were reminded of some striking numbers: In LIIF’s first three years (1984-1987), we made 19 loans totaling $1.17 million, or about $400,000 per year. This past fiscal year, we deployed about $250 million to communities across the country.
LIIF’s scale and impact has grown exponentially over the years. Half of our total $2.1 billion was invested in the last five years alone. With this level of resources comes great responsibility to invest in those communities who need it most. Next year, LIIF will pass the torch to a new CEO. We expect to welcome new ideas while remaining rooted in our commitment to addressing poverty and creating more just economic and social outcomes.
We’re excited to share the stories of a few people and communities we’ve supported in this year’s annual report. Connect with us on Twitter (@liifund) and share your ideas about how you think we can transform communities together.
Sincerely,
Nancy O. Andrews
President & CEO
Andrew Ditton
Former Board Chair
Derek Douglas
Current Board Chair
Since 1984, LIIF has invested capital to improve people’s lives. Our investments have created jobs and expanded opportunity for millions of Americans, 97% of whom are low-income. By financing the elements that create great neighborhoods, like affordable homes, good schools, health clinics and quality child care, we help people become self-sufficient, stabilize communities and save public dollars. Learn more about our impact.
invested in communities
People served
In benefits to communities
In cities and towns around the country, local leaders are pioneering innovative solutions to make their hometowns healthier, more economically vibrant and more equitable. LIIF invests in the ideas, people and resources of communities to ensure that residents have a voice in and benefit from transforming the places they live.
It’s 8am and the Excelsior District is alive with the sounds of the city as parents wave goodbye to their children at Mission Child Care Consortium (MCCC), the largest single-building early care and learning center in San Francisco.
It’s 8am and the Excelsior District is alive with the sounds of the city as parents wave goodbye to their children at Mission Child Care Consortium (MCCC), the largest single-building early care and learning center in San Francisco.
Since its founding in 1971, demand for affordable child care grew rapidly while local businesses competed with rising rent and gentrification pressures. The center struggled to maintain a foothold in the Mission neighborhood before relocating farther from the city center. Then, in 2017, MCCC was dealt a 40% rent hike.
Since its founding in 1971, demand for affordable child care grew rapidly while local businesses competed with rising rent and gentrification pressures. The center struggled to maintain a foothold in the Mission neighborhood before relocating farther from the city center. Then, in 2017, MCCC was dealt a 40% rent hike.
“Mission Child Care would have had to close its doors,” said Joe Martinez, Executive Director of MCCC. “Where would those 200 children go? What would their families do without child care?”
The community rallied, and local government leaders, foundations and nonprofits came together to support MCCC. LIIF provided $4.3 million in capital to help finance the purchase of the facility, ensuring long-term stability for families and children.
“When we found out MCCC bought this building, everyone was overjoyed,” said teacher Sarah Barbo. “This is our kids’ second home now.”
“What I love most about the school is that it’s quality care for an affordable price. I could go somewhere else and pay $3,000/month but it might still not be this diverse and dependable.”
—Bianca Enriquez Lopez, parent and board member
children served annually
years in operation
East Aldine has the feel of a small Texan town with swaths of open land dotted by homegrown businesses. An unincorporated district, the area is economically and socially isolated, despite its location less than 10 miles from Houston, the country’s fifth largest city. Of the town’s 53,000 residents, 34% of households have annual incomes of less than $25,000, and more than half do not have a high school education or equivalent.
East Aldine has the feel of a small Texan town with swaths of open land dotted by homegrown businesses. An unincorporated district, the area is economically and socially isolated, despite its location less than 10 miles from Houston, the country’s fifth largest city. Of the town’s 53,000 residents, 34% of households have annual incomes of less than $25,000, and more than half do not have a high school education or equivalent.
In lieu of broader regional opportunity, residents of East Aldine have built a local economy by investing in each other. Nearly 97% of retail space is occupied and 12% of the population are small business owners.
In lieu of broader regional opportunity, residents of East Aldine have built a local economy by investing in each other. Nearly 97% of retail space is occupied and 12% of the population are small business owners.
In 2018, BakerRipley will open the new Economic Opportunity Center to support this entrepreneurial spirit. The 43,000-square-foot facility, financed in part with New Markets Tax Credits from LIIF, will offer workforce development training, a maker space, business incubation center, financial services, flexible retail space and more.
“This center opens up the doors for technology, for building education, for people looking to start their own business,” said Raul Macias, a longtime resident of East Aldine.
The Economic Opportunity Center aims to build on the strengths of this community – resourcefulness, creativity and independence – and offer resources to expand economic opportunity throughout the region.
“A lot of neighbors liked the way I groomed my yard and an idea turned into an actual business. If I could get help in making this business better and protecting it, that’s where I could get the most help.”
—Rudy Bazan, East Aldine resident and small business owner
in New Market Tax Credit allocation from LIIF
participants in workforce development training by 2020
Healthy communities enable families to live up to their full potential. But health means more than just access to health care. People that live in neighborhoods that are safe, affordable and connected to regional jobs and services have better health outcomes, which enables higher engagement in the workforce and reduces public health care expenditures.
The connections that helped create Crosstown Concourse, a 1.5 million-square-foot, mixed-use “vertical urban village,” were built through years of conversations among Memphis leaders, residents, business owners and artists. After sitting vacant for 17 years, the former Sears, Roebuck & Company factory and retail center is now a vibrant home for the arts, education, health, affordable housing and retail.
The connections that helped create Crosstown Concourse, a 1.5 million-square-foot, mixed-use “vertical urban village,” were built through years of conversations among Memphis leaders, residents, business owners and artists. After sitting vacant for 17 years, the former Sears, Roebuck & Company factory and retail center is now a vibrant home for the arts, education, health, affordable housing and retail.
LIIF provided New Market Tax Credits to help ensure that nonprofit and community organizations to could afford to be part of the new building, which is expected to host 3,000 visitors every day. One organization expecting increased foot traffic is ChurchHealth, a faith-based healthcare center that focuses on offering comprehensive services to the working uninsured.
LIIF provided New Market Tax Credits to help ensure that nonprofit and community organizations to could afford to be part of the new building, which is expected to host 3,000 visitors every day. One organization expecting increased foot traffic is ChurchHealth, a faith-based healthcare center that focuses on offering comprehensive services to the working uninsured.
“Being healthy is not just about the absence of disease,” said Dr. Scott Morris, CEO and practicing doctor at ChurchHealth. “We offer health coaching, fitness space and nutrition counseling, and it’s possible because we work in a building with other community organizations.”
ChurchHealth partners with the YMCA to manage 25,000 square feet of health and fitness space and runs free cooking classes for low-income individuals out of a commercial kitchen. “We moved to Crosstown to form partnerships,” said Dr. Morris. “Together, organizations like ours can have the most impact possible.”
“At Crosstown Concourse, I use the gym, the cooking program and mental health coaches. I can buy my groceries, go the post office and eat at a healthy restaurant all in one place.”
—Lisa Jones, ChurchHealth patient and regular visitor to Crosstown Concourse
square feet
jobs created
Over the next decade, trillions of dollars in public and private funding will fuel bold new investments in infrastructure, transit, housing, health, climate resilience and sustainability. LIIF partnered with other leading national organizations to launch the Strong, Prosperous, And Resilient Communities Challenge (SPARCC) this spring to empower communities working to ensure that investments lead to equitable opportunities for everyone.
Over the next decade, trillions of dollars in public and private funding will fuel bold new investments in infrastructure, transit, housing, health, climate resilience and sustainability. LIIF partnered with other leading national organizations to launch the Strong, Prosperous, And Resilient Communities Challenge (SPARCC) this spring to empower communities working to ensure that investments lead to equitable opportunities for everyone.
SPARCC’s initial six regions are Atlanta, Chicago, Denver, Memphis, Los Angeles and the Bay Area. While each site faces unique challenges, all are led by diverse collaborative tables and cross-sector partnerships working on concrete strategies advancing the areas of racial equity, climate resilience and health.
SPARCC’s initial six regions are Atlanta, Chicago, Denver, Memphis, Los Angeles and the Bay Area. While each site faces unique challenges, all are led by diverse collaborative tables and cross-sector partnerships working on concrete strategies advancing the areas of racial equity, climate resilience and health.
In Denver, for example, Mile High Connects (MHC) is building on efforts to ensure that the $7.8 billion regional transit build-out benefits historically marginalized low-income communities and communities of color. MHC is working to reduce regional health disparities by providing flexible capital to spur development that benefits people and the environment and ensuring that diverse voices are part of city and regional planning conversations.
Low income communities in Denver currently suffer higher rates of asthma, a statistic which has been linked to neighborhoods’ proximity to highways and the resulting poor air quality. Through SPARCC, MHC is aiming to improve health outcomes for all of Denver’s residents.
“This investment comes at a critical time given the economic and development boom our region is experiencing. It will mean a great deal to low-income communities and communities of color.”
—Christine Márquez-Hudson, President and CEO of The Denver Foundation
geographic regions served
to ensure equitable, healthy communities
local partners
A home provides the foundation for the future: a place of stability, safety, dignity and health. This belief has been a cornerstone of LIIF’s work from day one. We invest in organizations that not only create affordable homes, but provide services like workforce training, counseling, health coaching and more – to turn housing into a building block for success for generations to come.
On a busy street near downtown Santa Ana, in Orange County, construction is under way on a new building being outfitted with rooftop solar panels, a courtyard patio and a commercial kitchen. But this is no luxury condo.
On a busy street near downtown Santa Ana, in Orange County, construction is under way on a new building being outfitted with rooftop solar panels, a courtyard patio and a commercial kitchen. But this is no luxury condo.
The Orchard is an $18 million affordable housing project, made possible in part by financing from LIIF, to enable Community Development Partners to renovate a former motel into 71 apartments for formerly homeless individuals and families. Once construction is complete, The Orchard will be Santa Ana’s single largest investment in permanent supportive housing addressing a worsening statewide homelessness crisis.
The Orchard is an $18 million affordable housing project, made possible in part by financing from LIIF, to enable Community Development Partners to renovate a former motel into 71 apartments for formerly homeless individuals and families. Once construction is complete, The Orchard will be Santa Ana’s single largest investment in permanent supportive housing addressing a worsening statewide homelessness crisis.
“After spending years on the street, I couldn’t believe it when I was offered an apartment,” said John C. Hacker III, a resident who lost his home after being hit by a car and unable to continue his career in construction.
The ultimate goal is to keep residents in stable housing long term by providing holistic supportive services like career counseling, mental health support and social activities.
“A lot of our residents are on food stamps and have mobility issues, and can’t access fresh, healthy food,” said Jacob Mize, an on-site housing stability specialist. “The community garden and dining hall offering three free meals a day is going to benefit them so much.”
“It’s wonderful living here. When I was living on the street, I was sick all the time, in and out of the hospital. Now I get to practice cooking. My quality of life has changed dramatically.”
—Katherina Kendron, resident
units of supportive housing created
permanent housing project for homeless in Orange County
Louise McNie used to live in the Brooklyn, NY, neighborhood where she now works as a tenant support coordinator with New Destiny Housing Corporation (New Destiny). The area feels safer, and there are more places to eat and shop, but rents are also much higher, which has meant some long-time residents have had to move. But stability and being able to stay in their homes and their community is part of what helps set New Destiny’s residents – half of whom are domestic violence survivors – on a path to success.
Louise McNie used to live in the Brooklyn, NY, neighborhood where she now works as a tenant support coordinator with New Destiny Housing Corporation (New Destiny). The area feels safer, and there are more places to eat and shop, but rents are also much higher, which has meant some long-time residents have had to move. But stability and being able to stay in their homes and their community is part of what helps set New Destiny’s residents – half of whom are domestic violence survivors – on a path to success.
LIIF provided $2 million in financing to renovate four of New Destiny’s apartment buildings with new floors, kitchens and bathrooms which had fallen into disrepair. Carolyn Bussey, a resident for 20 years, remembers, “I had come from a shelter and I had prayed to God. I had told him exactly what I wanted in an apartment... And a year later they called me for this apartment.” She now looks forward to hosting her son and her grandson in her new home.
LIIF provided $2 million in financing to renovate four of New Destiny’s apartment buildings with new floors, kitchens and bathrooms which had fallen into disrepair. Carolyn Bussey, a resident for 20 years, remembers, “I had come from a shelter and I had prayed to God. I had told him exactly what I wanted in an apartment... And a year later they called me for this apartment.” She now looks forward to hosting her son and her grandson in her new home.
In addition to housing, New Destiny provides social services to help residents become self-sufficient. For Louise, providing programs like homework help, employment readiness or first-time homeownership for residents like Carolyn, are what give her the most joy. “Faith and hope [keep me going], and seeing people change,” said Louise. “We had a tenant in the Bronx who actually bought a home. People don’t stay the same. People grow.”
“[Keeping these apartments] is a great benefit because the families are used to the neighborhood, the schools, and the community...they’re not getting pushed out. They’re able to afford the rent to stay.”
—Louise McNie, New Destiny Tenant Support Coordinator
individuals and families served across New York
years of providing safe shelter
LIIF is excited to announce the launch of the LIIF Impact Note: a simple, powerful way for everyday investors – like you – to expand economic opportunity and build communities where everyone can thrive. With the note, LIIF is making it possible for more people to participate in creating lasting impact while earning a return.
Join us to learn how meaningful investing can be. More at www.liifnote.org
track impact in regions you care about most
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| As of June 30 | 2017 | 2016 | 2015 |
|---|---|---|---|
| Assets | |||
| Cash and investments | 34,795,691 | 42,894,761 | 21,877,891 |
| Restricted cash | 42,484,893 | 31,769,653 | 26,975,337 |
| Notes receivable | 329,259,261 | 284,454,624 | 229,836,878 |
| Allowance for loan losses | (9,956,112) | (8,738,553) | (7,642,972) |
| Other assets | 17,570,309 | 7,157,950 | 9,576,129 |
| Total Assets | 414,154,042 | 357,538,435 | 280,623,263 |
| Liabilities | |||
|---|---|---|---|
| Notes payable | 276,012,426 | 242,029,511 | 169,672,399 |
| Funds held in trust | 16,001,705 | 15,076,380 | 10,002,986 |
| Other liabilities | 14,517,720 | 8,548,246 | 9,694,828 |
| Total Liabilities | 306,531,851 | 265,654,137 | 189,370,213 |
| Unrestricted | 57,059,610 | 52,143,029 | 44,293,272 |
| Temporarily restricted | 50,562,581 | 39,741,269 | 46,959,778 |
| Total Net Assets | 107,622,191 | 91,884,298 | 91,253,050 |
| Total Liabilities and Net Assets | 414,154,042 | 357,538,435 | 280,623,263 |
| As of June 30 | 2017 | 2016 | 2015 |
|---|---|---|---|
| Revenue | |||
| Net financing income | 10,840,196 | 10,422,026 | 8,776,707 |
| Technical assistance and consulting | 3,337,175 | 2,250,678 | 1,759,998 |
| Grants and contributions | 20,362,659 | 4,919,153 | 13,127,122 |
| Other | 3,420,209 | 4,339,652 | 3,093,459 |
| Total Revenue | 37,960,239 | 21,931,509 | 26,757,286 |
| Expenses | |||
|---|---|---|---|
| Program expenses | 15,144,762 | 15,328,304 | 11,755,633 |
| Supporting expenses | 7,077,584 | 5,971,957 | 5,234,465 |
| Total Expenses | 22,222,346 | 21,300,261 | 16,990,098 |
| Change in unrestricted net assets | 4,916,581 | 7,849,757 | 2,484,341 |
| Change in temporarily restricted net assets | 10,821,312 | (7,218,509) | 7,282,847 |
| Change in Total Net Assets | 15,737,893 | 631,248 | 9,767,188 |
Vice President for Civic Engagement and External Affairs, University of Chicago
President, Purpose Built Communities
Executive VP, Director of Corporate Responsibility and Reputation, BBVA Compass
Retired Partner, Wilmer Cutler, Pickering, Hale and Dorr
Director Corporate Services, International Center for Biosaline Agriculture
President & CEO, Low Income Investment Fund
Managing Director, JPMorgan Chase
Formerly Chief Homeownership Preservation Officer, U.S. Department of Treasury
Vice President, Public Health Impact, PATH
Former Director of the CDFI Fund
Founder (retired), PSJ Advisors
Founder, Stewards of Affordable Housing for the Future
Director, Community Reinvestment Act Programs, Urban Investment Group, Goldman Sachs
Managing Director, Morgan Stanley, CEO, Morgan Stanley Impact SBIC, COO, Morgan Stanley Community Investments
Breaking Ground
Bank of America
JPMorgan Chase
MUFG Union Bank, N.A.
Deutsche Bank
HSBC Bank USA, N.A.
Mizuho Bank, Ltd.
Capital One
Housing Partnership Network
Formerly U.S. Department of Treasury
Formerly Fannie Mae
Stewards of Affordable Housing for the Future
Goldman Sachs
BBVA Compass
Green Dot Public Schools
Uncommon Schools
Purpose Built Communities
Kresge Foundation
Children Now
BRIDGE Housing
Primary Care Development Corporation
Urban Homesteading Assistance Board
Cross Cultural Family Center
San Francisco Office of Early Care and Education
Family Child Care Association of San Francisco
Friends of St. Francis Day Care
Children’s Council of San Francisco
Wu Yee Children’s Services
Parent Voices
Bay Area Regional Collaborative
U.S. Bank Community Development Corporation
LINC Housing
Federal Reserve Bank of San Francisco
BBVA Compass
Rocketship Education
California Housing Partnership Corporation
Little Tokyo Service Center
EdTec
Managing Director, SPARCC Initiative
IT Director
President & CEO
Director of Financial Planning & Analysis and Capital Management
VP, Strategic Initiatives & Programs
SVP, National Markets & Capital Solutions
Director of Accounting
Director of National Lending Initiatives
General Counsel
Managing Director, Federal Policy & Government Affairs
Director of Communications
VP, Finance & Corporate Controller
Chief Credit Officer
Chief Operating Officer, EVP, Community Investments & Programs
Director, National New Market Tax Credits
Director, Central Region and Washington, D.C.
EVP, Strategy, Development & Public Affairs
EVP, Chief Financial Officer and Chief Administrative Officer
Director, Eastern Region
Director of Development and Impact Investing
Director of Lending Operations
Director, California Child Development Programs
As a leading national community development financial institution, the Low Income Investment Fund (LIIF) invests capital to support healthy families and communities. LIIF employs a holistic approach by investing 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.