LIIF Closes First CDFI Bond Guarantee Program Loan
The Low Income Investment Fund (LIIF) is pleased to announce that it has closed its first loan under the U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Bond Guarantee Program to support a high performing charter school in the Bronx, New York. The newly created CDFI Bond Guarantee Program enables CDFIs to provide long-term, fixed-rate capital to support economic growth and development in low income communities.
The $5.6 million in financing from LIIF will enable Civic Builders, a leading New York charter school developer, to refinance existing debt to provide a permanent home for the Bronx Charter School for the Arts (Bronx Arts). The school, which uses arts education as a catalyst for academic and social success, serves 300 K-5th grade students, 91% of whom are eligible for free and reduced-price lunch.
“The long-term financing LIIF provided through the CDFI Bond Guarantee Program enables Civic Builders to provide a lasting community presence for high performing charter schools, like Bronx Arts,” noted David Umansky, CEO of Civic Builders. “The CDFI Bond Guarantee Program provides a new source for longer duration capital at sizes and rates that are not typically available through the traditional tax-exempt bond market.”
“LIIF invests in schools that create brighter futures for families and communities. Access to high quality education is the key to building our nation’s prosperity and improving economic opportunity for everyone,” said Nancy O. Andrews, President and CEO of LIIF. “The CDFI Bond Guarantee Program enables LIIF, and the CDFI industry as a whole, to provide long-term, fixed-rate financing to projects in distressed communities that create opportunity and spur economic activity.”
Last fall, LIIF, Capital Impact Partners, IFF and The Reinvestment Fund jointly received a $200 million bond in the largest of the first two rounds of bonds provided by the CDFI Fund. LIIF will use its $65 million portion of the issuance to finance senior living and long-term care facilities, commercial real estate projects, healthcare facilities, charter schools, affordable housing units and child care centers.