Lending

Loans

LISC is a Community Development Financial Institution (CDFI) that offers financing during all stages of projects — predevelopment, property acquisition, construction, and permanent. We seek to strike the right balance between taking risks consistent with our role as a charitable lender, and recovering our capital so we can make funds available to future projects. Following are some examples of our loan products:

  • Pre-Development Loans
  • Acquisition Loans
  • Construction Loans
  • Mini-Permanent Loans
  • Revolving Working Capital Loans and Lines of Credit

For additional information, download:

2011_lending-fact-sheet

LISC Lending Fact Sheet

2012_lending_term_sheet

LISC Lending Products –
Summary of Terms


Investment Highlights

Providing financing for real estate projects in low-income communities is one of LISC’s core activities. Below are featured project investments:

A New Home for The Guidance Center

guidance_center_400x244


Project Name: The Guidance Center

Total Development Cost: $7.67 million

LISC Financing: $2 million

LISC Local Office: Los Angeles LISC


Founded in 1946, The Guidance Center (TGC) provides comprehensive mental health treatment to disadvantaged children and their families struggling with mental illness and abuse, leading them toward a positive and productive future. TGC annually serves more than 2,000 children, teens and families in Long Beach, Compton, and San Pedro, CA.

As TGC grew, it expanded into six different locations. The organization needed a new, modern home to consolidate offices, boost the efficiency of its operations, and enhance the effectiveness of its program delivery. To that end, it partnered with 1301 Pine Ave., LLC, a venture led by two real estate development firms (Urban Offerings and Meridian). With support from a $2 million LISC loan and a $4.1 million Clearinghouse CDFI Loan, the LLC is redeveloping a vacant, centrally located, 37,400 square foot commercial office building located on 1.3 acres of land in Long Beach. The $7.67 million project will convert the building into a psychiatric medical center. The LISC and Clearninghouse loans will fund the building’s acquisition and rehab costs, and convert to mini-perm loans payable within five years.

TGC is being extended a ten-year lease with two five-year renewal options. Also included in the lease is an option to purchase the building at a predetermined price. After move-in, TGC plans to undertake a capital campaign to purchase and own the space it will initially lease.

Long Beach is a strategic investment area for L.A. LISC. Helping TGC serve a very vulnerable population advances LISC’s Building Sustainable Community goal of supporting healthy environments and lifestyles for low-income residents. The new space is located close to public transportation, provides 120 parking spaces, and will be rehabbed to LEED certification standards. Improvements will include a new roof, HVAC system, and office, clinical and testing spaces.

A ‘Bridge’ For a Community Waterway

waterway_400x244


Project Name: Woonasquatucket River Watershed Council

Total Development Cost: $4.15 million

LISC Financing: $300,000

LISC Local Office: Rhode Island LISC


The eighteen-mile-long Woonasquatucket River flows through six cities and towns in Rhode Island, including Providence, before emptying into the Providence River and out into Narragansett Bay. The watershed covers 50 square miles of Rhode Island and includes Olneyville, a Providence neighborhood that is one of Rhode Island LISC’s Building Sustainable Communities sites.

After years of neglect, the river is once again emerging as a valuable, yet fragile, community asset in Olneyville. Recently, the Woonasquatucket River Watershed Council (WRWC), local and state representatives, a group of residents, and nonprofit groups that restore and preserve the Woonasquatucket River Watershed, received a $4.1 million Recreational Trails Program Grant from the Rhode Island Department of Transportation’s Federal Highway Administration. The contract will support the continued restoration of the river.

WRWC, however, had a problem common to public contracts. The state only reimburses funds already spent. There was also a gap between the invoicing and reimbursement periods. LISC stepped in with a $300,000 loan to bridge these timing gaps.

For the next five years, WRWC will use the state funding to improve the watershed’s existing bike paths, develop educational and arts programs, manage invasive plant species in the area, and construct a green Urban Environmental Education Center in Olneyville. The 6,000 square foot Center will house WRWC’s office, classrooms, a bicycle workshop, and storage for equipment such as kayaks, trucks and mowers.

Planned Market-Rate Condo Site to Serve Formerly Homeless

somerville_400x244


Project Name: Somerville Community Corporation

Total Development Cost: $2.67 million

LISC Financing: $800,000

LISC Local Office:TBoston LISC


The previous owner of 75 Cross Street, a 4,000-square-foot lot located in the City of Somerville a few miles from Boston, intended to build market-rate condos on the site. Construction ended when the economy faltered, leaving a building foundation that created safety issues and a physical blight in the neighborhood.

Somerville Community Corporation (SCC) was founded by residents and religious leaders in 1969. Two years ago, SCC stepped in with $720,000 to acquire the lot. Due to a shortage of units, many homeless citizens of Massachusetts are forced to live in substandard locations such as hotels. With financing that included an $800,000 loan from LISC, SCC is building an eight-unit residence for formerly homeless families on the site, providing them with a safe, decent housing option. LISC’s loan allowed the project to move forward by bridging three different sources of state funding that will come to SCC in 2013 and 2014. The project not only will assist the families who will live there, but also will remove a physical blight and unsafe condition from the neighborhood.

Though most developments like 75 Cross Street require families to leave the facility once their fortunes improve, SCC will allow families to stay, paying rents on a sliding scale according to their incomes. SCC partnered with the Somerville Homeless Coalition to provide supportive services to residents. Residents will also enjoy smaller utility bills thanks to SCC’s strong green and sustainable housing goals, which include a tight building envelope, insulation beyond code requirements, and a high efficiency boiler. The site is located less than a half mile away from an active subway station and will be a quarter mile away from two planned subway stops. A bicycle storage area is included in the building’s plans, allowing residents to more easily use alternative forms of transportation.

Additional Links

LISC’s Projects and Postcards

LISC’s Products and Services