Through three affiliates (The National Equity Fund, The New Markets Support Company and the Community Development Trust), LISC provides equity investments for projects that support community revitalization across the country, including affordable housing, commercial and retail buildings, and arts and community space. Pictured right is the Petersburg Public Library, completed in 2014.
Low-Income Housing Tax Credits
The federal low income housing tax credit was established in 1986 to encourage private investment in affordable rental housing. LISC’s affiliate, National Equity Fund, Inc. (NEF), is the nation’s largest nonprofit syndicator of the credits, providing equity capital for multifamily housing projects. Since 1987, NEF has been involved in 2,406 Low-Income Housing Tax Credit (LIHTC) developments, which created 149,082 affordable homes for low-income families and individuals, totaling more than $12.4 billion.
New Market Tax Credits
LISC is a pioneer in the development and use of New Markets Tax Credits (NMTC) to stimulate private capital investment in communities with high levels of economic distress and transform them into good places to work, do business and raise children. An innovator in the creation and use of this new federal program, LISC has focused its efforts on financing the development of commercial and community space and housing that generates jobs, provides needed goods and services, and reverses physical deterioration in struggling communities. Since the creation of the federal program in 2002, 100 NMTC transactions have closed, totaling $908 million in LISC NMTC allocation.
Community Development Trust
The Community Development Trust (CDT) is the country’s first private real estate investment trust with a public purpose and occupies a unique position to preserve and expand the supply of affordable housing, while earning attractive returns for shareholders. Created in 1998 with an initial capital investment from LISC, CDT operates much like a mutual fund, combining the capital of institutional investors to acquire or provide financing for affordable housing. Through its debt and equity programs, CDT makes long-term equity investments and originates or purchases long-term, fixed-rate, multi-family mortgages to preserve affordability. There has been $1.2 billion invested to preserve long-term affordability.