Arizona Community Foundation and partners celebrate surpassing million-dollar milestones for Affordable Housing Fund
The pre-development grant fund that LISC administers in partnership with the Arizona Community Foundation began over 2 years ago. It has now raised over $1 million for recoverable grants for development of affordable housing. LISC was one of the seed funders, providing a $50,000 grant for the pool. We have now provided $1 million in recoverable grants, which are also starting to be repaid as projects come on line.
PHOENIX, AZ – November 26, 2010 – (RealEstateRama) — The Arizona Community Foundation and its partner, the Phoenix office of the Local Initiatives Support Corporation, today hosted a celebration of two important milestones for the ACF Affordable Housing Fund: more than $1 million raised for the fund, and more than $1 million granted to support the development of affordable housing in Arizona.
The Community Foundation and LISC‐Phoenix created the ACF Affordable Housing Fund in 2007 to assist with development of affordable housing after the 2005 surge I home prices shut many Arizonans out of the housing market.
The Fund makes zero‐interest loans, also called recoverable grants, to non‐profit developers for the construction, refurbishment and/or repurposing of a variety of types of housing for affordable use. The loans are repaid when lender or government financing is obtained, typically within 24 to 36 months. Loans are for up to $75,000 per project, with the non‐profit developer supplying the rest of the predevelopment funds through their own resources or other fundraising. The process creates a “recycling” of available charitable dollars to continually assist non‐profit developers and projects.
The Fund has supported a total of 15 affordable housing developments to date, 11 of which are active today. (Two projects were cancelled and loans repaid in full, two are on hold and have been granted repayment extensions.)
The 639 units being developed are for low‐to moderate‐income individuals and families, senior citizens and disabled adults. Several of the supported projects buy and rehabilitate foreclosed properties and resell them to moderate‐income buyers, often in partnership with local government.
A key advantage of a fund built on philanthropic dollars is its flexibility. Originally envisioned as a way to fund the pre‐development phase of new‐construction projects, the mortgage crisis and onslaught of foreclosed housing inventory in recent years prompted the Community Foundation to adjust he Fund’s focus. Gifts made to the Fund were flexible enough to allow for acquisition and refurbishment in addition to new construction. A key focus of the Fund now is to take advantage of the large number of foreclosed homes in Arizona, rehabilitate them and resell them as affordable housing. Continued[+]….
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About Arizona Community Foundation
The Arizona Community Foundation is a 32‐year‐old nonprofit organization with four regional offices serving communities statewide. Established in 1978, ACF is among the top 30 community foundations in the nation, with more than 1,000 funds and endowment and trust assets exceeding $470 million. Last year, ACF awarded $37 million in grants and scholarships to some 3,800 nonprofit organizations, schools and government agencies. More information is available at www.azfoundation.org.
About LISC-Phoenix
Since its inception in 1992, LISC‐Phoenix has played an important role in the gradual rebirth of a number of blighted neighborhoods throughout metropolitan Phoenix. Working in collaboration with grassroots organizations, called community development corporations (CDCs), LISC Phoenix, and its corporate, foundation and public partners, have created an innovative approach to solving neighborhood problems in distressed, low-income neighborhoods. Since its founding, LISC Phoenix has built 2,156 housing units, over 251,716 square feet of community office/facility space. More information is availabl at www.lisc.org/phoenix.
