maximizing your investment how non-profit intermediaries can help you make safer socially...
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Maximizing Your Investment
How non-profit intermediaries can help you make safer socially responsible investments
October 14, 2009Janet OzarchukVice President and Treasurer
LISC is a Partner and Catalyst for Community Improvement
LISC By the Numbers
Since 1980, LISC Has Worked With Over 2,800 Non-Profit Community-Based Organizations and Invested $9 Billion Which Has Leveraged $28.2 Billion in Total Development.
• 244,755 affordable homes and apartments
• 36 million square feet of retail & community space
• 113 schools financed for 46,805 students
• 154 child care facilities supported for 16,000 children
• 205 playing fields renovated for 410,000 kids
LISC Has Received $138 Million in PRIs From 28 Foundations
Types of Loans
Predevelopment
Acquisition
Bridge Financing
Construction
Mini-Perm
Permanent
Working Capital
Housing
Multi-family rental Single family for saleSupportive housing – homeless seniors/veterans/etc.Artist live/work space
Community FacilitiesCharter schoolsDay care facilitiesRecreational facilitiesJob training facilitiesArtistic facilities
Commercial FacilitiesMain street corridorsSupermarketsMercadosCredit unionsMedical offices
Green Development
A PRI Helped LISC Attract and Leverage Additional Funds for Charter School
Facilities$10MM Foundation
PRI at 0%
$10MM Foundation PRI at 0%
$20MM Insurance Company Loan at 4.25%
$5MM LISC at 6.00%
$36MM Loan Fund
$20MMLoan Fund
$15MM Loan Fund
$1.7MM Loan Fund
$21MMLoan Fund
$31.4MM Loan Fund
$9.2MM Loan Fund
$35MM Loan Fund
$19.3MM Loan Fund
$15MM Loan Fund
$10MM
$35MM
$204MM
67 Charter Schools
A $1.5 million PRI Has Funded Over $3.2 million in Loans
Loan TypeAmount of Loan Project$200,000 Predevelopment Development of a highly visible vacant lot into 51 units for singles and families with on site supportive
services.$450,000 Acquisition Purchase of 6 vacant lots to be developed into 36 units in 10 town home style buildings in three
locations.$200,000 Predevelopment Redevelopment of a church into a family support center.$350,000 Acquisition Acquisition of a vacant lot and a deteriorated corner building to rehab into medical offices.$345,593 Acquisition & Rehabilitation Rehabilitation of 12 severely deteriorated single family homes.$43,490 Acquisition & Rehabilitation Development of 6 single family homes using lease to purchase.
$300,000 Predevelopment New construction of 1,090 rental and 1,351 for sale housing units; 45,000 sq.ft. of retail space.$77,931 Predevelopment 60 unit seniors' residential facility next to their church.
$1,000,000 Predevelopment 3 for sale projects; 3 rental projects, 1 retail project.$100,000 Predevelopment Redevelopment of 183 for sale and 325 rental units.$191,573 Acquisition Building was of historic significance to the African American community and on the National Register
of Historic Buildings. Renovated to 1 floor of retail space and three floors of office space.
$3,258,587
300,000.00 Predevelopment Part of a $1 million loan.New construction of 1,090 rental and 1,351 for sale housing units; 45,000 sq.ft of retail space.Total development cost: $37 million.
Advantages of Lending to an Intermediary
• Lend to specific identified projects that match the Foundation’s charitable purposes.
• Look to the intermediary for repayment of the PRI, NOT the project.
• Intermediary can accumulate and concentrate investment dollars in target locations to leverage the amount and types of projects to maximizeneighborhood impact.
PRI Providers are LISC’s Most Valued Partners
• Socially responsible capital
• Attractive financing terms
• “All Weather” participants
Thank You for Your Interest