Executive Director’s Thoughts
The moon, the sun, and the stars. This is what we all wish for our children and loved ones whether we live in Boyle Heights or Beverly Hills. We share the same essential aspirations, all part of that same delicious and diverse American enterprise. LISC Executive Directors understand our place is to ensure that America is working well for one and all. LISC cares deeply about improving society’s systems so those who "work hard and play by the rules,” as President Obama likes to remind us, self-actualize.
Over the past 90 days, LISC LA closed multiple loans and grants to bring our 2011 totals to $1.1M in grants, $4M in loans, and $6 M in New Markets Tax Credits deployed. In 2012, guided by updated Quality of Life Plans and fortified by innovative financing products and initiatives, we will increase our support to local initiatives, particularly in the areas of youth development, family income and wealth, and commerical corridor revitalization. I am most grateful to my colleagues, our funders and community partners, who have embraced me as one of their own. Here's to a rewarding year ahead and all the very best,
Jeffrey Graham, Executive Director
Loan and Grant Activity - 4Q 2011
Community Coalition of South LA – $900,000 Loan
Community Coalition of South LA , a neighborhood group co-founded by California's first female Speaker of the Assembly, now Congresswoman Karen Bass, acquired its headquarters building located between the Crenshaw and Central Avenue Corridors, which had been leased since 1997 from the Redevelopment Agency of the City of Los Angeles. Community Coalition leads the Prevention Network, an alliance that includes more than 100 social service agencies forging important collaborations serving South Los Angeles.
Visit www.cocosouthla.org
Alliance for College-Ready Public Schools (Alliance) - $3M loan plus $6M in New Markets Tax Credits
LA LISC contributed $3.0M to a $15.9M leveraged loan syndication for the Alliance for College Ready Public Schools, a California-based charter management organization. The financing is part of a New Market Tax Credits (NMTC) transaction led by Goldman Sachs and in partnership with the Low Income Investment Fund, used for the acquisition, construction, and mini-perm financing of a new middle and high school in one of Los Angeles’ highly distressed low-income communities, where most schools are performing poorly and school choice is severely limited. Upon completion, the new Lincoln Heights campus will enroll 1,000 students. The transaction was structured to maximize advantages flowing from both NMTC and Qualified School Construction Bonds, rendering these facilities affordable even in this time of great budget contraction in
California. See Project Profile.
East Los Angeles Community Corporation (ELACC) - $25,000 Grant
LA LISC provided a $25,000 grant to ELACC to increase access to fresh produce and create opportunities for economic development in the Boyle Heights area by implementing an Evening Farmers Market engaging local farmers, street vendors, and the families of Hollenbeck Middle School. This project is in partnership with Projecto Jardin, PACE, Bank of LA, Emerging Markets, Roosevelt High and Hollenbeck Middle School. Participants will be offered financial tools to move them from un-banked to banked through the alliance with Bank of LA and Emerging Markets. Please visit www.elacc.org
Coalition for Responsible Community Development (CRCD) - $150,000 Grant
LA LISC provided CRCD with a $150,000 capacity building grant for their South LA YouthBuild program, which in partnership with Trade Tech College, provides education and career path training to low-income, disadvantaged youth ages 18-24. CRCD recruits at-risk youth, engages them in comprehensive programming for high school diploma attainment, provides a nourishing campus environment for post-secondary education, marketable skills attainment and certifications with back-end apprenticeship/experiential education and employment. Please visit www.coalitionrcd.org
LAUSD Fremont High School - $200,000 Grant
LA LISC, through its national NFL Grassroots Program, awarded LAUSD a $200,000 grant to rehabilitate the football field at Freemont High School. NFL Grassroots is a partnership between the National Football League’s Youth Football Fund, the NFL Players Association, and LISC that works with community groups to create or rehabilitate playing fields in underserved neighborhoods. So far, the program nationally has resulted in 225 fields with $128 million in total funding. Please contact LA LISC to identify new opportunities for improvements such as installations of synthetic turf, irrigation systems, lights, bleachers, scoreboards and goal posts. Local matching funds are required. Please visit LISC
National.
Innovative Products
LISC/Morgan Stanley SBA 504 Program
LISC recently closed a Small Business Loan Fund using New Markets Tax Credits (NMTC) to subsidize rates on this $10 million loan fund. The Fund's goal is to provide low-cost, long-term financing to small businesses that enable job creation in neighborhoods that align with LISC's Building Sustainable Communities initiatives. Some requirements include 1) the census tract where the business is located be NMTC-eligible, 2) demonstrated support from the local community, 3) contributing to the long-term development of the community, and 4) decisive need for the NMTC subsidy. The Fund provides favorable financing terms and low origination costs, and is designed to enable funding of loans upon origination since loan originations do not require bank/lender capital. Until September 2012, loans can be deployed to
refinance existing loans including existing SBA 504 mortgages. LISC is working with Morgan Stanley and CDC Small Business on this program. Please see term sheet.
Non Profit Backstop Guaranty
LISC has launched a "backstop" guaranty for non-profit developers to facilitate construction loans to non-profits that lack the financial strength or liquidity to meet underwriting or guarantee requirements of construction lenders or equity providers. LISC's guarantee can be tapped to fulfill a sponsor's obligations under various types of guarantees, such as completion of construction or tax credit adjusters. Please see term sheet.
Neighborhood Revitalization Loan Fund
LISC has leveraged a $5 million grant from the federal Capital Magnet Fund to launch the Neighborhood Revitalization Loan Fund, an affordable housing loan pool designed to stimulate the development and preservation of multifamily rental housing for low-income residents. Supported by a $19 million loan from Morgan Stanley, the new fund is expected to fuel $100 million in affordable housing development by providing early financing and loan guarantees. The Fund will be used for predevelopment, acquisition, and construction loans and will also provide liquidity and guarantees. See article.
Initiatives
Commercial Corridor Revitalization Initiative
LISC launched this Southern California Initiative to include neighborhoods in both Los Angeles and San Diego. With generous support from Citi Community Development, LISC is employing sets of tools developed by LISC and community development banks over time to help leverage density to spur retail and other business opportunities in commercial corridors. Ongoing on the ground engagement with local businesses, residents, and institutional players will bring market and asset data to the fore. This Revitalization Initiative shall provide business associations, land-owners, lenders, foundation networks, and government partners with focused sets of recommendations for impactful and sustainable economic development. For additional information, please visit LA LISC's
website.
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