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Morgan Stanley, The Kresge Foundation and the Local Initiatives Support Corporation (LISC) have launched a first-of-its kind $100 million investment fund that is designed to expand access to health care and affordable housing for low-income residents and fund critical social services that help link the two in impoverished neighborhoods.
Called the Healthy Futures Fund, it is in part response to the Patient Protection and Affordable Care Act, and the 20 million new health care consumers that the legislation is likely to create.
The fund is being seeded with capital to build 500 housing units with integrated health services and to construct eight federally qualified health centers that will serve an estimated 75,000 people. It is designed to spur collaboration among health care providers and housing developers who do not often work together even when they operate in the same low-income neighborhoods and serve the same people.
“Connections between health and housing for low-income people need to be intentional. We can’t rely on serendipity to make this happen,” said Michael Rubinger, President and CEO of the LISC, a pioneering nonprofit that helps revive neighborhoods across the country.
“The collaboration among leading public policy programs, catalytic philanthropy, and private sector investment is critical to deliver robust, integrated solutions to improve the lives of low-income residents,” added Audrey Choi, Managing Director and Head of Global Sustainable Finance at Morgan Stanley. “Morgan Stanley’s investment in the Healthy Futures Fund reflects our continued commitment to building stronger, healthier communities.”
The fund is utilizing federal Low Income Housing Tax Credits, federal New Markets Tax Credits, grants, loans and guarantees to raise capital. Morgan Stanley is investing $63 million in equity through the Low Income Housing and New Markets Tax credits. The Kresge Foundation, LISC and Morgan Stanley are providing another $37 million in loan and grant capital for the projects.