Local Initiatives Support Corporation (LISC)

Local Initiatives Support Corporation (LISC)
Name	Local Initiatives Support Corporation
Abbreviation	LISC
Formation	1979
Type	Nonprofit organization
Headquarters	New York City
Region served	United States

Local Initiatives Support Corporation (LISC) is a national nonprofit community development financial institution headquartered in New York City that supports local community development efforts, affordable housing projects, small business growth, and neighborhood revitalization across the United States. Founded amid fiscal crises in the late 1970s, LISC operates through local programs, national initiatives, and partnerships with public and private sectors including Department of Housing and Urban Development, Ford Foundation, and JPMorgan Chase. Its work intersects with municipal agencies, philanthropic organizations, and financial institutions in cities such as Chicago, Los Angeles, Atlanta, Houston, and Philadelphia.

History

LISC was formed in 1979 during the aftermath of the Fiscal crisis of the 1970s and 1980s and urban disinvestment in cities like New York City, influenced by civic leaders connected to the Ford Foundation, Enterprise Community Partners, and advocates from neighborhoods such as South Bronx and Harlem. Early efforts leveraged relationships with federal programs including Community Development Block Grant and partnerships with national banks like Citigroup and Wells Fargo to finance projects in cities including Detroit, Cleveland, and Baltimore. Throughout the 1980s and 1990s LISC expanded via collaborations with entities such as Local Initiatives Support Corporation's National Lending Program partners, while engaging policy dialogues with figures from the Clinton administration and agencies like Department of Housing and Urban Development. In the 21st century LISC scaled initiatives tied to recovery after events including Hurricane Katrina and the Great Recession, aligning with philanthropic responses from organizations such as the Robert Wood Johnson Foundation and financial commitments from Bank of America and Goldman Sachs.

Mission and Programs

LISC's stated mission centers on equitable neighborhood development, affordable housing, and economic opportunity through programs that include community development lending, workforce initiatives, and small business support in collaboration with organizations such as Enterprise Community Partners, NeighborWorks America, and Habitat for Humanity International. Major program areas have engaged housing developments with partners like National Low Income Housing Coalition and workforce training aligned with institutions such as Urban League of Greater Pittsburgh and Year Up. Programs often coordinate with federal initiatives like Low-Income Housing Tax Credit and state-level housing finance agencies in places such as California and New York (state). LISC operates place-based work via city offices in locales including Sacramento, California, Minneapolis, Minnesota, and New Orleans.

Funding and Financial Instruments

LISC finances projects through a mix of loans, grants, tax-credit equity, and syndicated investment vehicles drawing capital from sources such as Wells Fargo, JPMorgan Chase, Goldman Sachs, and philanthropic foundations including the Ford Foundation and the Kresge Foundation. It utilizes instruments tied to federal programs like New Markets Tax Credit and Low-Income Housing Tax Credit and partners with entities such as US Department of the Treasury initiatives and state housing finance agencies. LISC also structures community investment vehicles akin to offerings promoted by Calvert Impact Capital and collaborates with mission-driven banks such as Community Reinvestment Act-focused lenders and regional institutions in cities like Seattle and Boston.

Major Initiatives and Projects

LISC has supported large-scale efforts including recovery financing after Hurricane Katrina in New Orleans and redevelopment projects in Bronx River neighborhoods, collaborating with organizations like Habitat for Humanity International and city redevelopment agencies in Chicago and Detroit. Notable projects include transit-oriented development near systems operated by agencies such as Metropolitan Transportation Authority (New York) and affordable housing complexes financed using Low-Income Housing Tax Credit in markets such as San Francisco Bay Area and Washington, D.C.. National initiatives have addressed small business resilience in collaboration with Small Business Administration programs and workforce pipelines linked to organizations such as Goodwill Industries International.

Partnerships and Affiliates

LISC maintains partnerships with philanthropic organizations such as the Ford Foundation, Robert Wood Johnson Foundation, and Kresge Foundation, financial institutions including Citigroup, Bank of America, and Goldman Sachs, and nonprofit partners like Enterprise Community Partners, NeighborWorks America, and Habitat for Humanity International. It coordinates with federal agencies such as the Department of Housing and Urban Development, US Department of the Treasury, and Small Business Administration and with state housing finance agencies in jurisdictions like California and New York (state). Local affiliates and program partners include community development corporations in cities such as Cleveland, Philadelphia, Atlanta, and Minneapolis.

Governance and Leadership

LISC is governed by a board composed of leaders from philanthropy, finance, and civic sectors, often including executives from institutions such as Goldman Sachs, JPMorgan Chase, Ford Foundation, Kresge Foundation, and civic leaders from cities like New York City and Chicago. Senior leadership historically has collaborated with figures in national policy and philanthropy, engaging with administrations from Clinton administration to Obama administration on neighborhood investment strategies and partnering with nonprofit leaders from Enterprise Community Partners and NeighborWorks America. Local offices report to regional directors who liaise with municipal stakeholders in jurisdictions such as Los Angeles County and Cook County.

Impact and Criticism

Advocates credit LISC with mobilizing capital for affordable housing, small business lending, and neighborhood revitalization in cities including Detroit, Baltimore, and New Orleans, citing measurable outputs in housing units and loan commitments recorded alongside partners such as Enterprise Community Partners and NeighborWorks America. Critics and housing advocates associated with groups like Right to the City and researchers from academic institutions such as Harvard University and University of California, Berkeley have questioned outcomes related to gentrification, displacement, and reliance on partnerships with large financial institutions including Goldman Sachs and Bank of America. Debates have involved policymakers in bodies like New York City Council and researchers at think tanks such as the Brookings Institution and Urban Institute, who scrutinize long-term affordability, community governance, and impact metrics.

Category:Non-profit organizations based in the United States