In 1984, the Low Income Investment Fund (LIIF) was created to address the growing challenges faced by underserved communities. Forty years later, LIIF stands as a national leader with a proud legacy of creating opportunities for millions of people and strengthening communities. Over the decades, LIIF has deployed $3.5+ billion in capital to support small businesses, create jobs and improve local economies while impacting the lives of 2.5 million people across the nation. These are lasting, transformative changes that are strengthening communities.
This milestone is more than just a celebration of years past: It’s a testament to the power of strategic investments and strong partnerships.
The Origins and Evolution of LIIF
LIIF was founded during a time of tremendous change and unmet need. In the early 1980s, federal support for housing programs dwindled, leaving nonprofit community builders scrambling for scarce resources. In this environment, LIIF — then the Low Income Housing Fund — was founded in 1984, designed to show that housing developments serving low-income people were not only worthy of credit but essential to building strong communities nationwide.
As the CDFI industry took shape, LIIF became a pioneer, leveraging support from foundations and other financial institutions to fill the void left by federal cuts. Over time, LIIF evolved beyond housing to address the interconnected challenges of poverty, embracing a broader vision that included child care, education, health care and community facilities. LIIF was a trailblazer in comprehensive community investment, recognizing that improving lives required untangling the Gordian knot of endemic systemic inequities.
Our Impact Over the Years
Throughout its history, LIIF has been a steady hand during periods of economic turmoil. During the 2008 housing crash, LIIF provided crucial support to communities affected by foreclosures, ensuring that affordable housing developments remained viable. More recently, during the depths of the COVID-19 pandemic, LIIF and other CDFIs stepped up to offer economic relief by stabilizing small business child care providers, housing developers and other essential services in the face of unprecedented challenges.
These moments highlight LIIF’s enduring role as a lifeline for communities during times of uncertainty, reinforcing its commitment to resilience and recovery. Year after year, deal after deal, borrower after borrower, LIIF has been building its success and impact, as a stalwart and a leader in the field of community development.
LIIF’s approach has always been about more than bricks and mortar. Each investment represents a building block for community empowerment, aimed at fostering resilience and opportunity. The organization’s strength lies in its people — a dedicated team, visionary Board and committed stakeholders — united by a shared mission that “everyone in the United States should benefit from living in a community of opportunity, equity and well-being.”
A Reimagined Vision
In 2020, LIIF launched an ambitious strategic plan to drive $5 billion in new investments to strengthen communities by 2030. We are on track, now at 61% of this goal met by the end of FY24 (June 30, 2024). The centerpiece of this plan is reimagining how capital is deployed; a few years ago, LIIF created an Impact-Risk-Profitability (IRP) framework for our lending. This forward-thinking model, now adapted by peers, challenges traditional paradigms.
Moving Forward: A Call to Action
Forty years of transformative work is just the beginning. As LIIF celebrates this milestone, it’s a moment to reaffirm our dedication to continuous learning, innovation and collaboration. The challenges ahead are significant, but so is the opportunity to shape a future where every community has the resources to thrive.
Join us in celebrating LIIF’s journey and supporting its mission for the next 40 years. Together, let’s create opportunity for all.