LIIF Applauds Passage of Landmark Housing Legislation to Create Capital Magnet Fund
The Low Income Investment Fund (LIIF) today praised the Housing and Economy Recovery Act which was signed into law by President Bush after being passed with bipartisan support in the U.S. Senate and House of Representatives last week. The landmark legislation includes a number of significant items to address problems facing the U.S. housing market, and also includes a vital provision to maximize the impact of private investment in low-income communities across the country.
Specifically, the new law creates a trust fund, known as the Capital Magnet Fund. LIIF’s President and CEO, Nancy O. Andrews, who testified before the U.S. Senate Committee on Banking, Housing and Urban Affairs in favor of the Capital Magnet Fund, noted, “The Capital Magnet Fund will be used by Community Development Financial Institutions like LIIF as well as other mission-driven developers to do what we do best: leverage private investment into poor communities. The Fund will extend capital resources to communities and neighborhood projects in an innovative, high impact, and high leverage manner.” The Fund will be established by the Secretary of Treasury to increase investment in the development, preservation, rehabilitation, and purchase of affordable housing for primarily extremely low, very low, and low income families and economic or community development activities that support or sustain an affordable housing project.
Ms. Andrews also stated, “I especially want to thank U.S. Senators Christopher Dodd (D-CT) and Jack Reed (D-RI) for their unrelenting stewardship of this legislation. As well, this outcome couldn’t have been achieved without the help of a broad coalition of organizations led by Opportunity Finance Network, devoted to improving the lives of low income Americans and their families. We are fortunate to have their leadership to turn vision into action in support of community development.”
For more about LIIF, please go to our website at www.liifund.org or contact Abbie McBride.
ABOUT THE LOW INCOME INVESTMENT FUND
Since 1984, the Low Income Investment Fund (LIIF) has served over 600,000 people by providing more than $810 million in financing and technical assistance to hundreds of community organizations serving the nation’s poorest and hardest-to-reach populations. LIIF’s primary program areas are affordable and supportive housing, child care and education facilities benefiting low income people and families. Currently, LIIF operates in four regions of the United States: northern California, southern California, the New York City metropolitan area and Washington, DC, with offices in four cities: San Francisco, Los Angeles, New York City and a policy office in Washington, DC.