This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

LISC Launches Neighborhood Revitalization Loan Fund To Drive Affordable Rental Housing Development With Funding From Morgan Stanley, Capital Magnet Fund

NEW YORK, Oct. 24, 2011 /PRNewswire-USNewswire/ -- The Local Initiatives Support Corporation (LISC) has leveraged a $5 million grant from the federal Capital Magnet Fund to launch the Neighborhood Revitalization Loan Fund – an affordable housing loan pool designed to stimulate the development and preservation of multifamily rental housing for low-income residents.

Supported by a $19 million loan from Morgan Stanley [NYSE: MS], the new fund is expected to fuel $100 million in affordable housing development by providing the early financing and loan guarantees required by investors and construction lenders. The fund will be disbursed through 30 LISC urban programs around the country, as well as through Rural LISC.

Noted Audrey Choi, Managing Director and Head of Morgan Stanley's Global Sustainable Finance group:  "We are pleased to provide this focused capital to help LISC launch this fund and meet the needs of communities across the country.  LISC has built an innovative program to mitigate the funding risks that have hindered development of the affordable housing sector.  Morgan Stanley's loan is the latest reflection of our commitment to support community development through targeted deployment of capital to areas in need."

The first loan for the new pool closed recently in Chicago, providing $3.6 million to bridge local Tax Increment Financing for Zapata Apartments, a new 61-unit development in the city's Logan Square neighborhood. Lack of full financing stalled the project for two years, though it was championed by Bickerdike Redevelopment Corporation, one of the city's leading nonprofit developers.

Last fall, LISC was one of 23 organizations awarded $80 million in grants from the federal Capital Magnet Fund, an initiative created by the Housing and Economic Recovery Act of 2008 and managed by the Treasury Department's Community Development Financial Institutions Fund (CDFI Fund).  The Capital Magnet Fund aims to spur development of affordable rental housing and other community facilities, as well as to attract significant private capital to the effort.  

With its Capital Magnet Fund grant, LISC laid the groundwork for the Neighborhood Revitalization Loan Fund, which will be used for predevelopment, acquisition and construction loans.  The Fund also will provide liquidity and Section 8 guarantees which enable developers to borrow adequate funds to complete and operate projects in an environment in which investors are uncertain about federal funding commitments. The LISC Fund will focus on Low Income Housing Tax Credit (LIHTC) projects.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs