Investing in Our Communities
LISC NYC Lending and Investment – 2010 in Numbers
In 2010, LISC NYC and our affiliates provided close to $1.1 million in loans, more than $450,000 in grants, and $75.5 million in equity investments
to local CDCs and entrepreneurs. Affordable housing remains our core focus and we made significant strides in the preservation of community housing assets. Our housing investments included, for example, projects involving the disposition of city-owned buildings to community-based ownership; 4 projects were developed by local nonprofits and 3 by local entrepreneurs who together created 375 units of housing. LISC NYC also originated a New York Acquisition Fund loan for Abyssinian Development Corporation’s
preservation acquisition of Mother Zion Houses, a 76-unit project that was at risk of losing its federal subsidy and affordability. We worked to ensure that the housing under the stewardship of CDCs continues to remain affordable and financially viable; Hope Community’s 40 year-old Muscoota portfolio, containing 65 units, underwent extensive physical upgrades and needed repairs. Finally, we made more than 15 grants to our partner CDCs and other community development practitioners, to support capacity-building, retention of key staff, research and other special initiatives.
LISC Awarded $70MM in New Markets Tax Credits
On February 25th, the U.S. Treasury Department announced its award of $70 million in New Markets Tax Credits investment authority to LISC, as part of its $3.5 billion in 2011 allocations. That brings LISC’s total New Markets allocation since 1993 to $693 million, the largest in the country. New Markets Tax Credits spur investment in projects that bring new retail, schools, arts and recreational facilities to distressed and underserved communities. Nationally, has closed on some $550 million in New Markets transactions. In NYC, LISC NYC has several projects in the pipeline for NMTC investments, two of which we expect to close this year.
Read the LISC press release on the award >>>
Tools and Resources for Affordable Housing PractitionersLISC NYC Sponsors Property Management Training for CDC Partners
Affordable housing property management always poses certain challenges – and more so in a difficult economic climate. Recognizing this fact, LISC NYC sponsored a special training workshop – "Making the Most of Your Property Management Challenges," held on January 20, 2011 – designed to help ensure the long term sustainability of affordable housing properties. Over 30 participants from 22 organizations attended the workshop, which was led by Judy Weber from Viva Consulting
. The workshop examined the key elements in the owner-manager relationship regardless of whether the CDC self-manages or works with a third-party manager. Participants gained strategies to help them improve the relationship between the owner and the property manager. They also identified all the direct and indirect costs involved in operating a property management division within their organization. Participants reported that they were particularly happy with the course materials and examples provided; and several stated that they would immediately employ some of the strategies covered in the workshop. LISC NYC plans to host more sessions on this topic to help ensure that these precious community assets are maintained.
HPD Launches NYC Green House
Expanding the education and knowledge of building owners and operations staff is crucial to ensure that newly retrofitted buildings are able to minimize energy and water consumption and maximize cost savings. LISC NYC is a program sponsor for the NYC Green House launched by the New York City Department of Housing Preservation and Development (HPD) and the Community Preservation Corporation
on February 23rd. NYC Green House is a hands-on tool kit and online resource guide for multifamily owners and operators to save money by going green. Moving forward, LISC NYC will also work with HPD to provide training workshops for the building owners and operators of housing developed by our CDC partners.
Click here to read an article about the launch of the NYC Green House >>>
Policy UpdateHPD Launches Proactive Preservation Initiative
On January 13, 2011, Mayor Bloomberg, Housing Preservation and Development Commissioner Rafael Cestero, and City Council Speaker Christine Quinn announced the launch of HPD’s new Proactive Preservation Initiative
, a new approach to identify and pro-actively address deteriorating physical conditions in multifamily buildings throughout the city. Instead of responding to tenant complaints as they come in, the goal of the initiative is to identify buildings in the early stages of deterioration – using data from a variety of sources – and then perform comprehensive inspections and apply code enforcement and incentive tools as necessary. The announcement was made in the Bronx, following a tour by the Mayor, the Speaker and the Commissioner of 2785 Sedgewick Ave, one of the buildings in the extremely distressed and financially overleveraged “Milbank portfolio,” and an example of the type of housing distress the new initiative seeks to prevent.
LISC NYC has worked closely with HPD and other partners and advocates over the past year to strategize policy and programmatic solutions to financial overleveraging and physical distress in multifamily housing, and applauds the Proactive Preservation Initiative for advancing this goal. In December and February, we testified on two legislative proposals by the administration and the City Council that support the initiative: Intro 436, a bill to amend the Alternative Enforcement Program; and Intro 26-A, a bill to authorize the sale of stand-alone, non-property tax liens, including Emergency Repair Program liens.
Read our testimony on Intro 436 >>>
Read our testimony on Intro 26-A >>>
Action Alert!Join City Council Speaker Chris Quinn in calling on Congress to Block Devastating Housing Cuts!
The House of Representatives, on February 21st, passed HR1, a continuing appropriations bill which includes enormous cuts to the HUD budget for the remainder of Fiscal Year 2011. Among many important programs targeted for deep cuts is the Community Development Block Grants (CDBG) program
, which funds much of HPD’s code enforcement work, as well as neighborhood organizations that offer eviction-prevention services and other forms of crucial assistance for tenants. CDBG would be cut by 66% over FY 2010 levels in the bill; while the Public Housing Capital Fund
would be cut by 42.6%, at a time when years of inadequate funding have left many public housing developments in dire need of repairs.
Please join the Speaker, LISC NYC, and many others in calling on our representatives in Congress to hold the line against these devastating cuts!
When: Thursday, March 3rd, 11:30am
Where: The steps of City Hall
For more information about LISC New York City, please visit our website.
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