LIIF Invests $100 Million in 2006 for Affordable Housing, Child Care and Education Programs in California and New York
Low Income Investment Fund (LIIF) announced today that its focus on building a “platform for social investment” resulted in investments of $100 million last year, primarily in affordable housing, expanded education opportunities for underserved children and other community development initiatives. The funds were targeted through 110 loans and 180 grants in three regions: Northern California; Southern California; and New York City.
In addition to LIIF’s baseline work of providing capital and lines of credit to non-profit organizations, in June 2006 the growing organization announced the creation of the $35 million Fund for Schools and Communities (FSC), to develop seven new charter school facilities in low income neighborhoods throughout California. FSC paves the way for increased private sector involvement in supporting educational opportunities for underserved children. LIIF will manage the fund in 2007, which will concentrate primarily on schools in the San Francisco Bay Area, Sacramento, San Diego and Los Angeles.
A central part of LIIF’s overall community development strategy is a strong commitment to affordable housing, which remains an active LIIF program area and constitutes 60 percent of its overall lending activity. In 2006, LIIF closed a total of $30 million in loans to support 2,900 homes for low income families and individuals in California and New York. The long-term impact of this activity is a savings of more than $300 million for these, primarily, low income families.
LIIF President and CEO Nancy O. Andrews said: “When you put all the pieces together, Low Income Investment Fund is working to make a difference in the lives of individuals who are living at or below the poverty line. Affordable housing, educational opportunities and child care are ‘real world’ issues that make an enormous quality of life difference for people who benefit from our work.”
LIIF Managing Director, National Lending and Housing Programs Nancy McLaughlin said: “The growing demand for LIIF’s resources indicates an increase in the financing needs of nonprofit organizations serving low income families and individuals. For example, in 1998, LIIF closed a total of $15 million in financing, while in 2006, that investment grew to a total of $100 million. We expect this increased demand for LIIF’s capital to continue in 2007 and beyond.”
Moving forward in 2007, LIIF will continue to expand and strengthen its programs that help to alleviate poverty and help families achieve economic self sufficiency. By 2014, LIIF’ goal is to have invested $1 billion to serve 1 million people.