The Low Income Investment Fund (LIIF) has launched the $45 million Accelerator Fund to support Purpose Built’s comprehensive community-driven neighborhood development aimed at supporting racial equity, economic mobility, and improved health outcomes. There are currently more than 25 Purpose Built sites across the country led by community leaders working to end the cycle of generational poverty through mixed-income housing, cradle-to-college education, and community wellness resources.
The fund was created in partnership with JPMorgan Chase Bank, Amalgamated Bank, Truist Bank, MUFG Union Bank and the Robert Wood Johnson Foundation. It is a part of the broader Accelerator Initiative, which provides a range of capital solutions to Purpose Built’s network members.
Managed by LIIF, the Accelerator Fund will provide acquisition loans, as well as permanent financing and New Markets Tax Credit leverage loans directly to projects sponsored by Purpose Built’s network members. It will support a variety of community facilities known as community cornerstone projects, like housing, schools, early care and education facilities. LIIF will provide $21.5 million in capital to the fund as well as underwriting, servicing, and asset managing the program loans.
Purpose Built members have identified access to capital as a significant barrier to growing their communities. The Accelerator Initiative will provide them with an array of dedicated capital tools that are tailored to meet their needs.
In addition to the newly closed fund, the Accelerator Initiative supports Purpose Built with additional products such as LIIF’s Equity with a Twist (EQT) enterprise-level financing, also supported by JPMorgan Chase, and grants and technical assistance for members, supported by the Robert Wood Johnson Foundation and the Truist Foundation.