The Low Income Investment Fund's (LIIF's) mission is poverty alleviation, and its programs promote economic advancement and self-sufficiency for the very poor. As a national community development financial institution (CDFI), LIIF works to accomplish its mission by providing capital resources and technical assistance for affordable housing, child care, education, public policy and other community building initiatives. In so doing, LIIF provides a crucial link between community-based development organizations, capital markets and other sources of financing.
Direct Lending: Through the Revolving Loan Fund (RLF) and the Affordable Buildings for Children's Development (ABCD) Fund, LIIF provides predevelopment, acquisition lines of credit, construction financing, and mini-permanent loans. LIIF offers lines of credit and working capital to nonprofit organizations for operational needs.
Packaged Loans: LIIF underwrites and packages permanent and interim financing loans for banks and other conventional lenders and also creates capital pools for specific program sectors. LIIF provides technical assistance and loan-structuring to ensure project stability and financial security.
Program Specific Capital Grants: LIIF administers the San Francisco and Alameda Child Care Facilities Funds (CCFF), which offer assistance to support child care facilities in the Bay Area. In addition, LIIF leads the Affordable Building for Children's Development (ABCD) Initiative a statewide program to provide child care facilities financing in California. LIIF also provides child care assistance in the New York City metropolitan area.
Technical Assistance: LIIF provides technical assistance to its borrowers as well as financial institutions, corporations and public sector agencies. LIIF's technical assistance includes feasibility analysis, loan structuring, business planning, and loan and project monitoring.
LIIF strives to serve the hardest-to-reach populations: 97% of the families supported by LIIF-financed projects have incomes at or below 80 percent of area median income and 71 percent of the families are very low income (defined as incomes at or below 60 percent of area median income). Eighty-five percent of the communities served are in major urban areas, 10% are in minor urban areas, and 5% are in rural communities. LIIF focuses its efforts in Northern California, Southern California and New York's metropolitan area areas that comprise nearly 20 percent of the nation's total poverty population.
LIIF has helped hundreds of nonprofits nationwide. In FY08, LIIF provided $67 million to finance quality and affordable child care, housing, schools and other community facilities. Since inception, LIIF has provided approximately $875 million in financing and technical assistance for projects benefiting low income communities, leveraging investments of $5.3 billion. These projects have made a significant difference in the lives of 620,000 low income families and individuals, including:
- 55,000 units of low-income and special needs housing;
- 100,000 child care spaces;
- 44,000 spaces in charter schools for children; and
- over 2.5 million square feet of commercial space.
For the low- income families of Garden Court, securing a future with stable and affordable homes was not an easy battle. The effort started with the leadership of resident Rose Williams, who organized more than 150 families into the Garden Court Housing Development Fund Corporation (HDFC) in a quest to purchase the building. With grit and determination and help from LIIF, the residents of Garden Court realized their dream.
Says a proud Rose, “We all just wanted to own a piece of something ... there is a pride you carry with yourself when you own something.”