Local Initiatives Support Corporation

Local Initiatives Support Corporation
Name	Local Initiatives Support Corporation
Abbreviation	LISC
Formation	1979
Headquarters	New York City
Type	Nonprofit
Leader title	President and CEO
Leader name	Daniel Vargas

Local Initiatives Support Corporation is a national nonprofit community development financial institution based in New York City that supports community revitalization, affordable housing, small business lending, and neighborhood development. It partners with philanthropic foundations, federal agencies, municipal governments, financial institutions, and community organizations to provide grants, loans, technical assistance, and equity investments. LISC works in hundreds of cities and rural areas across the United States through local offices and affiliates to leverage private capital for public purpose.

History

Founded in 1979 during a period of urban upheaval, LISC built early alliances with the Ford Foundation, Rockefeller Foundation, MacArthur Foundation, Kresge Foundation, and Annie E. Casey Foundation to scale community development finance. In the 1980s LISC collaborated with HUD programs such as the Community Development Block Grant and the HOME Investment Partnerships Program, and engaged with municipal initiatives like the New York City Housing Authority revitalization and partnerships with the Chicago Housing Authority. During the 1990s LISC expanded through alliances with national intermediaries including Enterprise Community Partners, NeighborWorks America, and Rebuild America while participating in policy debates at the U.S. Congress and commissions influenced by leaders such as Henry Cisneros and Andrew Cuomo. After the 2008 financial crisis LISC increased lending in coordination with the Federal Reserve Bank of New York, the Department of the Treasury, and programs like the Community Development Financial Institutions Fund, while collaborating with private-sector partners including JPMorgan Chase, Bank of America, Wells Fargo, and Goldman Sachs. In the 2010s and 2020s LISC launched initiatives addressing disaster recovery alongside agencies such as the Federal Emergency Management Agency and partnered with philanthropic efforts led by the Bill & Melinda Gates Foundation, Robert Wood Johnson Foundation, and Ford Foundation affiliates to address health and equity.

Mission and Programs

LISC’s mission emphasizes neighborhood revitalization through affordable housing, economic development, health equity, and workforce training; it has programmatic ties to Low-Income Housing Tax Credit projects, New Markets Tax Credit financing, and initiatives modeled on collaborations with Habitat for Humanity International, YMCA of the USA, United Way Worldwide, and Local Housing Authorities. Core programs include affordable housing preservation aligned with standards from the National Low Income Housing Coalition and the Urban Institute, small business lending with partners such as Accion USA and Small Business Administration, and community safety strategies coordinated with local law enforcement reforms influenced by discussions involving Bryan Stevenson and The Sentencing Project. LISC administers workforce and education supports in coordination with institutions like City University of New York, Chicago Public Schools, and civic initiatives tied to Mayor’s Offices in municipalities including New York City, Chicago, Los Angeles, Detroit, and Philadelphia.

Organizational Structure and Leadership

LISC operates through a national office and regional field offices in metro areas and rural regions; governance includes a board with leaders from philanthropy, banking, and community organizations such as executives from JPMorgan Chase, representatives from the Ford Foundation, and nonprofit leaders from Enterprise Community Partners and NeighborWorks America. Past and present senior figures in allied roles have included policymakers like Henry Cisneros, housing advocates connected to Harlem Children’s Zone, and corporate partners akin to executives at Bank of America and Wells Fargo. LISC collaborates with local Community Development Corporations such as BronxWorks, Chicago Rehab Network, and rural intermediaries like Appalachian Regional Commission affiliates, with program staff deployed regionally to coordinate financing, technical assistance, and compliance with federal programs administered by HUD and the Community Development Financial Institutions Fund.

Funding and Financial Model

LISC’s funding model combines grants from foundations such as the Ford Foundation, MacArthur Foundation, Robert Wood Johnson Foundation, and Annie E. Casey Foundation; investments and loans from financial institutions including JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs; and public funding via partnerships with HUD, the Department of the Treasury, and municipal housing agencies like the New York City Housing Authority. LISC leverages tools such as the Low-Income Housing Tax Credit, New Markets Tax Credit, tax-exempt bond financing used by issuers like State Housing Finance Agencies, and program-related investments from national philanthropic actors such as The Rockefeller Foundation and Robert Wood Johnson Foundation. The organization also raises capital through federally certified vehicles related to the Community Development Financial Institutions Fund and co-invests with community lenders like Community Development Financial Institutions and mission-driven banks including Citizens Bank affiliates.

Impact and Notable Projects

LISC has helped finance thousands of affordable housing units, small businesses, and community facilities across cities including New York City, Chicago, Los Angeles, Detroit, Atlanta, Houston, Philadelphia, Cleveland, Baltimore, and St. Louis. Notable projects and partnerships include redevelopment efforts tied to neighborhood anchors similar to BronxWorks collaborations, transit-oriented development near nodes like Grand Central Terminal and regional projects linked to Metropolitan Transportation Authority planning, and disaster recovery financing after events such as Hurricane Katrina and Hurricane Sandy in coordination with FEMA and state recovery offices. LISC-supported initiatives have been profiled alongside research by the Urban Institute, Harvard Joint Center for Housing Studies, and the Brookings Institution for contributions to affordable housing preservation, small business stabilization, and community asset building.

Criticism and Controversies

LISC has faced criticism from community activists and housing advocates concerned about potential gentrification and displacement in neighborhoods involved in large-scale redevelopment, echoing debates involving organizations like ACORN, National Community Reinvestment Coalition, and advocacy by figures associated with Jane Jacobs’ urbanist critiques. Financial transparency and partnership choices with major banks such as JPMorgan Chase and Bank of America have attracted scrutiny similar to critiques aimed at other intermediaries like Enterprise Community Partners and Habitat for Humanity International over reliance on corporate capital. Some scholars from institutions like Columbia University, New York University, and University of California, Berkeley have examined trade-offs between capital attraction and community control, while watchdog reports from groups akin to ProPublica and Center for Popular Democracy have questioned outcomes in specific redevelopment cases.

Category:Non-profit organizations based in New York City