Partners in Innovation: Financing Affordable and Workforce Housing within

Transit Oriented Development

Harrison Community CenterLincoln Park, Duluth, MN

Bethune AcademyMilwaukee LISC

Anika Goss FosterVice President for Sustainable Communities

Local Initiatives Support Corporation

People, Not Just Places, Need to Prosper

Building Sustainable Communities

A New Strategic Direction

Launched in 2007 Responds to changing on-the-ground needs of communities Driven by LISC’s best local program work Builds on CCRP Bronx model and Chicago NCP model

adaptation Economic and housing crisis reinforce the need for

comprehensive approaches

“LISC understands that if you want to make a difference at the local level, whether it’s housing, schools or anything else, you have to look at the broader community and the other needs in that community.”

Shaun DonovanSecretary, U.S. Department of Housing and Urban Development

2. Increasing family income and wealth

Five Program Goals

5. Fostering livable, safe and healthy environments

4. Improving access to quality education

1. Expanding investment in housing and other real estate

3. Stimulating economic activity, locally and regionally

Building SustainableCommunities

Fostering increased and sustained resident engagement – creating a sense of ownership and accountability – relational organizing model

Developing and implementing a comprehensive neighborhood plan with clear goals, action steps and outcomes

Connecting a broad base of implementation partners and working across silos – collaboration is value added

Targeting multiple investments in concentrated areas

Broadening the engagement of public and private partners as funders and systems change advocates

What Does it Take?Key Elements of the Model

LISC’s TOD Strategy

LISC is Piloting it ‘s TOD work in 5 sites: Boston, Bay Area, Philadelphia, Phoenix and the Twin Cities

In the five sites LISC will support the growth of innovation in TOD through technical support, policy leadership, capacity building and/or creative financial investment.

At the national level, LISC will develop policy and financial resources to provide support for investment in physical development, land acquisition, convening, peer learning, and state and federal policy advocacy for TOD.

Common TOD Themes in the Pilot Sites

Collaborative Model – LISC sites are working with community partners, to develop local neighborhood collaboratives that connect community planning with the potential physical and economic benefits of transit

Scale – Large scale housing and commercial projects are necessary to develop mixed income housing and retail that meets diverse needs. LISC’s model emphasizes the importance of scale in TOD to leverage economic opportunity in multiple communities and within regions.

Equity – In each of the LISC sites TOD is seen as an important tool for increasing equity for marginalized communities by combining elements of the built environment, family income and assets, economic vitality, education, health and the environment with affordable and effective regional transit.

Capital Aggregation- critical to the model is the aggregation of capital necessary for these projects, which often require large amounts of patient capital for site assembly, have longer holding times and larger financing gaps.

Innovation on the Ground - Bay Area

Great Communities Collaborative $40-60 million Bay Area Acquisition Fund

made up of CDFIs, Public Agencies, and Philanthropic Partners

Funds available to for-profit and non-profit developers attempting to secure properties along the transit corridor within a 9 county zone of the Bay Area

Fund designed to address TOD project challenges such as: long holding times and unmet financing gaps

Proposed features include maximum loan to value financing of up to 110%

Innovation on the Ground - Phoenix

A broad based collaborative of stakeholders that includes: housing and transportation agencies, community partners, academic institutions and the foundation community.

$30 million fund, assembled by the collaborative to incent and guide the development of affordable housing and related functions in areas well served by high capacity transit

Best practice models of Transit Oriented Development (TOD) will be utilized as the benchmark for proposed projects, i.e. civic engagement, resident-led leadership

A TOD protocol is envisioned that will aid in capacity building for the entire project delivery system at all levels of development: local government, lenders, developers, residents, utilities.

Developing a feasibility study to determine most effective use of the fund.

Sustainable Communities Working Group