CDFI Fund announces support for LISC foreclosure relief in six cities

16 Sep 2010

Contact:

Emily Bolton, LISC Foreclosure Response
212-455-9844 or ebolton@lisc.org
Colleen Mulcahy, LISC Communications
312-342-8244 or cmulcahy@nefinc.org

For Immediate Release:

September 16, 2010


NEW YORK-The Local Initiatives Support Corporation (LISC) is expanding its foreclosure response work in six urban areas with the help of a $750,000 award from the Treasury Department’s Community Development Financial Institutions (CDFI) Fund. The CDFI Fund recently announced $104.9 million in awards to 180 CDFIs across the country, including LISC.

LISC will leverage the CDFI Fund award with Neighborhood Stabilization Program (NSP) funds and private capital to help community-based organizations stabilize hard-hit neighborhoods in Chicago, Detroit, Indianapolis, Phoenix, Providence and the Twin Cities.

“These additional funds will have a significant impact on our ability to support creative local responses to this ongoing crisis,” noted Michael Rubinger, LISC president and CEO.

“Foreclosures continue to devastate many low-income communities that just a few years ago had been making progress toward economic stability. Today, they are marked by plummeting property values, rising crime and painful unemployment. The ripple effect of foreclosures touches everything from neighborhood schools to local businesses, social services and community programs. That’s why we are tackling this crisis from a comprehensive, whole-community perspective,” he said.

Through LISC’s local programs in each of the cities—along with technical support and funding from national LISC—the CDFI Fund award will be deployed to help purchase and rehabilitate foreclosed, vacant, and abandoned properties, and resell them to new buyers.

The foreclosure response work fits with LISC’s broader efforts to revitalize distressed neighborhoods, including support for projects and programs connected to economic development, family income and asset building, quality schools and educational programs, community safety, recreational facilities and programs, health care centers, and affordable housing. LISC’s comprehensive approach is called Building Sustainable Communities.

“Responding to the foreclosure crisis has become a critical piece of our Building Sustainable Communities effort to revitalize low-income communities,” Rubinger said. “We are working to restore the overall health of places that have long suffered from blight. We are grateful for the CDFI Fund’s support as we continue this important work.”

About LISC

LISC combines corporate, government and philanthropic resources to help nonprofit community development corporations revitalize distressed neighborhoods. Since 1980, LISC has raised more than $9.7 billion to build or rehab more than 271,000 affordable homes and develop 40 million square feet of retail, community and educational space nationwide. LISC support has leveraged $31.1 billion in total development activity. For more information, visit www.lisc.org.

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Article Type: Press Release