Public-Private Partnership Announces Loan Fund to Create Affordable Housing in Louisiana
Public-Private Partnership Announces Loan Fund to Create Affordable Housing in Louisiana
Living Cities: The National Community Development Initiative, in partnership with several of its largest financial and foundation partners, the State of Louisiana, and two national nonprofit organizations, has announced the creation of a $47 million loan fund dedicated to producing affordable homes and apartments in hurricane-devastated areas of Louisiana.
Through property acquisition, pre-development lending, and below-market-rate loans to nonprofit and for-profit developers, the Louisiana Loan Fund will work to accelerate the production, repair, and preservation of affordable and mixed-income housing, which is essential to the recovery of areas affected by hurricanes Katrina and Rita. Capitalized with $17 million in state funds and $30 million in private loans, the fund expects to leverage approximately ten times as much funding — an estimated $450 million — for housing development in the eight most hurricane-devastated parishes in the state.
The fund will be operated by the Local Initiatives Support Corporation (LISC) and Enterprise Community Partners, the two largest nonprofit community development organizations in the country. Enterprise and LISC will review and approve the loan applications and provide appropriate technical assistance to borrowers at no cost. Both will also loan some of their own capital to the project. Other supporters of the fund include the Annie E. Casey, Ford, Bill & Melinda Gates, Robert Wood Johnson, and Rockefeller foundations, J.P. Morgan Chase & Company, and Deutsche Bank.
"Our experience indicates that the best way to create opportunities for devastated areas of Louisiana is to encourage strategic public and private partnerships that support those with proven experience on the local level," said Living Cities CEO Reese Fayde. "This model also allows for flexibility, local decision-making, and trust in local partners to be accountable and achieve results for community residents."
“$47 Million Loan Fund Launched by Successful Partnership.”
Living Cities Press Release
4/25/07.
Primary Subject: Community Improvement/Development
Secondary Subject(s): Hurricane Relief
Location(s): Louisiana
FC010380
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