The Local Initiatives Support Corporation (LISC) is a US
non-profit
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
community development financial institution A community development financial institution (US) or community development finance institution (UK) - abbreviated in both cases to CDFI - is a financial institution that provides credit and financial services to underserved markets and populations, ...
(CDFI) that supports community development initiatives across the country. It has offices in nearly 40 cities and works across 2,100 rural counties in 44 states. LISC was created in 1979 by executives from the Ford Foundation. LISC's affiliates include the National Equity Fund (NEF), the largest national syndicator of
Low Income Housing Tax Credits (LIHTC), the New Markets Support Company, a national syndicator of
New Markets Tax Credits, and immito, which specializes in SBA 7a lending.
LISC and its affiliates support community development projects through grants, loans and equity investments as well as technical and management assistance. In the 2020
fiscal year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
, it reported grants, loans and investments totaling US$2 billion, leveraging $4.4 billion in total development and supporting over 700 partners across America. Since 1979, LISC has invested $24 billion into communities, leveraging $69 billion to support the creation of 436,000 affordable homes and apartments and 74.4 million square feet of retail and community facilities.
History
The idea for LISC was conceived in 1979 by a group of
Ford Foundation
The Ford Foundation is an American private foundation with the stated goal of advancing human welfare. Created in 1936 by Edsel Ford and his father Henry Ford, it was originally funded by a US$25,000 gift from Edsel Ford. By 1947, after the death ...
officials, including foundation president
Franklin A, Thomas, and trustees visiting community development projects in
Baltimore
Baltimore ( , locally: or ) is the List of municipalities in Maryland, most populous city in the U.S. state of Maryland, fourth most populous city in the Mid-Atlantic (United States), Mid-Atlantic, and List of United States cities by popula ...
.
One of the trustees asked Ford Foundation Vice President Mitchell Sviridoff "what he would do if he had $25 million to spend on helping declining cities." Sviridoff responded that he would "identify competent leaders in 50 to 100 communities around the nation and give them as much money and support as possible."
Sviridoff went on to become LISC's first president.
Robert D. Lilley, a former president of
AT&T
AT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world's largest telecommunications company by revenue and the third largest provider of mobile tel ...
, was chosen to be the first chair of LISC’s board.
LISC was founded in December 1979 and formally announced in May 1980, with $10 million in capital from the Ford Foundation,
Aetna
Aetna Inc. () is an American managed health care company that sells traditional and consumer directed health care insurance and related services, such as medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans, ...
, Continental Illinois Bank,
International Harvester
The International Harvester Company (often abbreviated by IHC, IH, or simply International ( colloq.)) was an American manufacturer of agricultural and construction equipment, automobiles, commercial trucks, lawn and garden products, household e ...
,
Levi Strauss & Co., and
Prudential Insurance
Prudential Financial, Inc. is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, retirement planning, investment management, and other products and services to both retail and institutional customers ...
. LISC made its first loans and grants to 27 community organizations in December 1980. The initial grantees were a diverse group, including housing developers in
New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
, child-care facilities in
California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
and economic development organizations in
rural
In general, a rural area or a countryside is a geographic area that is located outside towns and cities. Typical rural areas have a low population density and small settlements. Agricultural areas and areas with forestry typically are describ ...
Appalachia
Appalachia () is a cultural region in the Eastern United States that stretches from the Southern Tier of New York State to northern Alabama and Georgia. While the Appalachian Mountains stretch from Belle Isle in Newfoundland and Labrador, Ca ...
. By 1985, LISC had raised $100 million and was active in 20 cities.
The
South Bronx
The South Bronx is an area of the New York City Borough (New York City), borough of the Bronx. The area comprises neighborhoods in the southern part of the Bronx, such as Concourse, Bronx, Concourse, Mott Haven, Bronx, Mott Haven, Melrose, B ...
quickly became a focus for the new organizations work. In addition to banks and foundations, LISC began raising capital from private corporations like
Macy’s
Macy's (originally R. H. Macy & Co.) is an American chain of high-end department stores founded in 1858 by Rowland Hussey Macy. It became a division of the Cincinnati-based Federated Department Stores in 1994, through which it is affiliated wi ...
,
CBS
CBS Broadcasting Inc., commonly shortened to CBS, the abbreviation of its former legal name Columbia Broadcasting System, is an American commercial broadcast television and radio network serving as the flagship property of the CBS Entertainm ...
,
Metlife
MetLife, Inc. is the holding corporation for the Metropolitan Life Insurance Company (MLIC), better known as MetLife, and its affiliates. MetLife is among the largest global providers of insurance, annuities, and employee benefit programs, wi ...
, and
Time, Inc
Time Inc. was an American worldwide mass media corporation founded on November 28, 1922, by Henry Luce and Briton Hadden and based in New York City. It owned and published over 100 magazine brands, including its namesake ''Time'', ''Sports Illu ...
. LISC’s investments in the Bronx helped stabilize the borough after the “
Bronx is burning” era of the 1970s. The investments resulted in the first private homes built in the Bronx in decades. LISC’s work in the South Bronx received wide acclaim from the media, local residents and government officials. The success of early efforts in the South Bronx became the model for community development throughout the country.
In 1997
President
President most commonly refers to:
*President (corporate title)
*President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese ful ...
Bill Clinton
William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
toured Charlotte Street in the
Bronx
The Bronx () is a borough of New York City, coextensive with Bronx County, in the state of New York. It is south of Westchester County; north and east of the New York City borough of Manhattan, across the Harlem River; and north of the New Y ...
, one of the first LISC projects, and noted "Look at where the Bronx was when President
Jimmy Carter
James Earl Carter Jr. (born October 1, 1924) is an American politician who served as the 39th president of the United States from 1977 to 1981. A member of the Democratic Party (United States), Democratic Party, he previously served as th ...
came here in despair. Look at where the Bronx was when
President Reagan
Ronald Wilson Reagan ( ; February 6, 1911June 5, 2004) was an American politician, actor, and union leader who served as the 40th president of the United States from 1981 to 1989. He also served as the 33rd governor of California from 1967 ...
came here and compared it to
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
in
the Blitz
The Blitz was a German bombing campaign against the United Kingdom in 1940 and 1941, during the Second World War. The term was first used by the British press and originated from the term , the German word meaning 'lightning war'.
The Germa ...
. Look at the Bronx today. If you can do it, everybody else can do it."
1980s: Low Income Housing Tax Credit
LISC was an early advocate for the
Low-Income Housing Tax Credit
The Low-Income Housing Tax Credit (LIHTC - often pronounced "lie-tech", Housing Credit) is a dollar-for-dollar tax credit in the United States for affordable housing investments. It was created under the Tax Reform Act of 1986 (TRA86) and gives ...
(LIHTC), which created by the
Reagan Administration
Ronald Reagan's tenure as the 40th president of the United States began with his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a Republican from California, took office following a landslide victory over D ...
in the
Tax Reform Act of 1986
The Tax Reform Act of 1986 (TRA) was passed by the 99th United States Congress and signed into law by President Ronald Reagan on October 22, 1986.
The Tax Reform Act of 1986 was the top domestic priority of President Reagan's second term. The a ...
. In 1987, LISC launched the
National Equity Fund (NEF) to syndicate LIHTC, raising $14.5 million in the first year. In 1988 LISC raised $51 Million for affordable housing project through LIHTC, and $77 Million in 1990. Although LIHTC was initially created as a temporary measure set to expire by 1989, its effectiveness prompted LISC and other organizations to advocate for its extension. In 1993,
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
granted LIHTC permanent status. Once LIHTC achieved permanency, LISC and NEF launched a program to build $1.5 Billion dollars worth of affordable housing.
1990s: Rural Program, Partnerships, Robert Rubin
In 1995 LISC launched Rural LISC, expanding beyond urban areas in an effort to spur rural economic and housing development. In its first year, Rural LISC supported 68 rural development organizations. Today, it partners with hundreds of organizations in over one thousand rural counties.
In 1997 LISC partnered with the
NFL to create and refurbish playing fields in low-income urban areas. In 1999, Clinton's
Treasury Secretary
The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
Robert Rubin
Robert Edward Rubin (born August 29, 1938) is an American retired banking executive, lawyer, and former government official. He served as the 70th United States Secretary of the Treasury during the Clinton administration. Before his government ...
became the
Chairman of the Board
The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the grou ...
of LISC. In 2002, with support from the
Walton Family Foundation
The Walton family is an American family whose collective fortune derived from Walmart makes them the richest family in the United States of America.
Overview
The three most prominent living members (Jim, Rob, and Alice Walton) have consist ...
, LISC began financing
charter school
A charter school is a school that receives government funding but operates independently of the established state school system in which it is located. It is independent in the sense that it operates according to the basic principle of auto ...
s.
2000s: Building Sustainable Communities
In 2007, under the leadership of CEO Michael Rubinger, LISC created a comprehensive community development strategy called Building Sustainable Communities (BSC), which featured five place-based goals.
Expanding investment in housing and other real estate
Affordable housing is the largest LISC program area. While many LISC initiatives finance the construction of new homes, others refurbish existing housing stock or help municipalities reclaim abandoned
Zombie Homes
Increasing family income and wealth
LISC supports nationwide job training and
financial literacy
Financial literacy is the possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. Raising interest in personal finance is now a focus of state-run prog ...
programs through a network of 71 Financial Opportunity Centers (FOCs). FOCs provide low-income individuals with personal career coaching and job placement programs, financial and credit literacy training and access to public benefits.
Stimulating economic development
LISC works with local governments and civic groups to finance the construction or redevelopment of retail corridors, arts center and civic institutions. Examples include:
*
Washington, D.C.
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
's
Howard Theatre
The Howard Theatre is a historic theater, located at 620 T Street, Northwest, Washington, D.C. Opened in 1910, it was added to the National Register of Historic Places in 1974.
In its heyday, the theater was known for catering to an African- ...
* "The Platform," a non-profit co-working space in a formerly decrepit building in downtown
Indianapolis
Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Marion ...
.
* Retail Corridor Development through the "MetroEdge" corridor program in
Philadelphia
Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Sinc ...
's
Fishtown neighborhood.
Improving access to quality education
LISC is a major financier of charter schools nationwide. According to the LA Times, at least a dozen schools in California would run out of money without financing from LISC designed to cover shortfalls in state funding. LISC's Schoolbuild Portal is an information resource for Charter Schools that want to finance facility improvements.
Supporting healthy environments and lifestyles
LISC partners with the
NFL in the "Grassroots" program, which has built or rehabilitated 269 youth and community football fields nationwide In 2012, LISC launched the "Healthy Futures Fund" to create affordable housing units linked with health care and social services. LISC's Community Safety Initiative works with police departments and local residents to improve police-community relations and reduce crime.
2010s: Housing Crisis, Preventing Displacement, Impact Investment
In the 2010s, many of the neighborhoods LISC had been working in for decades became attractive to private development. Compounded with the effects of the
Great Recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
, this led to a national housing crisis, with market-rate rents becoming unaffordable to middle- and lower-income families in many major American cities. LISC offices responded to the crisis by working to preserve affordable housing and prevent displacement.
In 2016, former
Virginia
Virginia, officially the Commonwealth of Virginia, is a state in the Mid-Atlantic and Southeastern regions of the United States, between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth ar ...
Secretary of Commerce
Maurice A. Jones became LISC's fourth CEO. Under Jones' tenure, LISC began to focus resources on
impact investing
Impact investing refers to investing, investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return". At its core, impact investing is ...
in an effort to attract private investors from diverse sectors to community development. In 2017, LISC became the first
CDFI A community development financial institution (US) or community development finance institution (UK) - abbreviated in both cases to CDFI - is a financial institution that provides credit and financial services to underserved markets and populations, ...
to enter the commercial bond market, raising $100MM from its initial offering of SustainAbility Bonds. In 2018, LISC helped create the first impact investing funds focused on the creative economy.
2020s: Pandemic response, racial equity
With the onset of the Covid-19 pandemic in early 2020, LISC responded with new investments to stem the economic fallout, especially to small businesses. It launched a small business grant program that provided more than $200 million in grants to over 16,000 small businesses. The majority of the businesses supported with minority- and women-owned. It also launched a new $1B initiative over the next 10 years to help close the racial wealth, health and opportunity gap.
CEOs
* Mitchell Sviridoff, 1980-1985
* Paul Grogan, 1986-1998
* Michael Rubinger, 1998-2016
*
Maurice A. Jones, 2016–2020
* Lisa L. Glover, 2020-present
See also
*
Community development
The United Nations defines community development as "a process where community members come together to take collective action and generate solutions to common problems." It is a broad concept, applied to the practices of civic leaders, activists ...
*
Community development financial institution A community development financial institution (US) or community development finance institution (UK) - abbreviated in both cases to CDFI - is a financial institution that provides credit and financial services to underserved markets and populations, ...
*
Urbanism
Urbanism is the study of how inhabitants of urban areas, such as towns and cities, interact with the built environment. It is a direct component of disciplines such as urban planning, which is the profession focusing on the physical design and m ...
*
Low-Income Housing Tax Credit
The Low-Income Housing Tax Credit (LIHTC - often pronounced "lie-tech", Housing Credit) is a dollar-for-dollar tax credit in the United States for affordable housing investments. It was created under the Tax Reform Act of 1986 (TRA86) and gives ...
References
Further reading
* Paul Grogan and Tony Proscio, ''Comeback Cities: A Blueprint for Urban Neighborhood Renewal.'' New York: Basic Books, 2001.
* Tony Proscio ''Becoming What We Can Be: Stories of Community Development in Washington DC.'' New York: LISC, 2012.
External links
*
{{Authority control
Non-profit organizations based in New York City
Community development financial institutions
Ethical investment
Financial services in the United States
Urban planning in the United States
501(c)(3) organizations