Jonathan Harwtiz, Low Income Investment Fund

1. Urban Land Institute, Housing Opportunity Conference
Federal Housing Policy Roundup
May 15, 2014
Housing, Community Development
and Health: Federal Policy
Challenges and Opportunities
Jonathan Harwitz
Policy Director, Low Income Investment Fund

2. 2
Low Income Investment Fund (LIIF)
• Mission-driven nonprofit community development
financial institution founded in 1984
• Headquartered in San Francisco, with offices in
Los Angeles, New York and Washington, D.C.
• Array of activities: Capital solutions, policy,
technical assistance and programming

3. What We’ve Done
• 60,000 homes
• 242,000 child care slots
• 70,000 spaces for students
• 98,000 jobs created/retained
• 2,000 child care centers
“greened”
• 60% carbon footprint reduction
3

4. Our Impact
4
$1.5 billion invested$1.5 billion invested
1.7 million people served1.7 million people served
$33 billion in social impact created$33 billion in social impact created

5. 5
A More Holistic, Integrated Approach
• Housing, education, health
clinics, child care, transit
access and safety
•Emerging understanding of the connections between
physical and social capital
•Increasingly measurable connection between housing
investments and healthcare expenditures

6. LIIF Federal Policy Priorities
6
• Appropriations
• Treasury: CDFI Fund (FY 2015 proposed: $225 million)
• Education: Charter Schools Program (FY 2015 proposed:
$248.5 million
• HHS/HRSA: Health Clinic funding (FY 2015 proposed: $800
million)
• HUD: rental assistance and capital programs incl. block grants

7. LIIF Federal Policy Priorities (cont.)
7
• Tax/Mandatory Spending
• LIHTC
• NMTC (extension at $3.5 billion)
• ACA: ($5 billion funding for health clinics)
• Housing Finance/GSE
• Affordability strip/fee
• Capital Magnet Fund

8. Policy Update
8
• HUD Appropriations FY 2015
• President’s Budget Proposal
• Impact of CBO scoring of FHA receipts
• House mark-up
• Capital Magnet Fund
• Housing Finance/GSE reform
• current law

9. 9
Examples of LIIF-Supported
Projects and Initiatives

10. Capital Magnet Fund
10

11. 11
West End Health Center
Denver, CO
Financing
• $500,000 tenant improvement loan
• $58,000 CMF credit enhancement
Partners
• Colorado Coalition for the Homeless
• Colorado Health Foundation
• 7,400-square-foot facility provides primary care, mental health,
substance abuse treatment, pharmacy and nursing services
• Co-located with a 101-unit affordable housing development with
50 supportive housing units for homeless families
• Projected to serve 1,200 Medicaid-qualified clients
Project Summary

12. Equitable Transit-Oriented
Development

13. 13
National Partnerships
• Enterprise MOU
• CONNECT partnership with
Living Cities
• HUD Sustainable
Communities TA Grant sub-
recipient with Institute for
Sustainable Communities
Tier 2Tier 2
AtlantaAtlanta
ChicagoChicago
ClevelandCleveland
Salt Lake CitySalt Lake City
Twin CitiesTwin Cities
Washington, D.C.Washington, D.C.
Learning CommunityLearning Community
HUD Sustainable CommunitiesHUD Sustainable Communities
GranteesGrantees
Tier 1Tier 1
Bay AreaBay Area
DenverDenver
Los AngelesLos Angeles
SeattleSeattle

14. Appendix: Detail on Capital Magnet
Fund

15. Capital Magnet Fund (CMF)
15
• Established by Congress through HERA in 2008 to provide flexible
public funds to attract private capital investment into affordable
housing projects
• Expected funding stream interrupted by Fannie Mae and Freddie
Mac conservatorship
• FY 2010: CMF receives $80 million appropriation
• Included in President’s Budget
• CDFI Fund awarded funds to 23 groups serving 38 states
• 230 applicants requested $1 billion during application process

16. CMF FY 2010 Award Results (through July 2013)
Percent committed 78
Amount committed $62mm
Leverage 1:12
Total investment in communities $1bn
Affordable homes supported 6,803
Projects supported (including community
and economic development)
189
Assistance to homebuyers 105
Jobs created/maintained (full-time and
construction)
5,771

17. Key Ingredients of Success in FY 2010
17
• Enterprise-level investment in high-capacity organizations
• Operationally sound (only 3.25% of grants used for operations)
• Sufficiently capitalized to bear risk
• Rapid capital deployment
• Capital deployed proved “magnetic”
• Awardees attracted 12 dollars for every dollar of CMF invested
• Flexibility enabled catalytic capital investments
• Purposes (e.g., ‘seed’ funding) and characteristics (e.g., ‘patience’) led
to rapid deployment and successful project outcomes