In April 2021, LISC launched the Community Asset Transition (CAT) Fund. The CAT Fund was designed in partnership with Hennepin County, JPMorgan Chase, the Minneapolis Foundation, the Bush Foundation, and the McKnight Foundation to rebuild after the civil unrest in response to the murder of George Floyd in May 2020.
In April 2021, LISC announced the launch of the Community Asset Transition (CAT) Fund. The CAT Fund was designed in partnership with Hennepin County, JPMorgan Chase, the Minneapolis Foundation, the Bush Foundation, and the McKnight Foundation to rebuild after the civil unrest in response to the murder of George Floyd in May 2020. Up to $30 million is available through the CAT Fund to serve as an accessible, affordable source of capital to drive community ownership and prevent displacement, particularly in areas most affected by last year’s civil unrest.
The Fund works by providing loans specifically for community organizations to acquire properties and become catalysts for transformative community restoration. Properties at risk of market conversion and gentrification are identified in collaboration with local organizations, and LISC Twin Cities provides support throughout the implementation of the project. Ultimately, the CAT Fund hopes to build community ownership and wealth for residents of the Twin Cities through working closely with local organizations on acquisition of critical properties.
Local Neighborhood Development Center (NDC) is now the first organization to draw on these funds. NDC is a St. Paul-based nonprofit real estate firm with a 30-year history of development projects that create housing, job opportunities, and cultural spaces for local residents, like Minneapolis’ Mercado Central.
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NDC site development in February 2021
With support from the CAT Fund, NDC was able to acquire a lot at the historic corner of Chicago Avenue and E. Lake Street for $1.6 million, winning out over higher bids as the former owner wanted to ensure the parcel stayed with a local developer. The property, previously a two-story commercial building, burned down in the civil unrest following the death of George Floyd. Plans are still in the early stages for the 15,000 square foot lot, but NDC hopes to create a multistory mixed-use building that could include affordable housing.
While still early in the planning process, NDC’s acquisition is an indicator of the transformational projects to come through the CAT Fund, both investing in local communities and building community ownership and wealth in Minneapolis.
You can read the initial announcement in the StarTribune, and follow updates from LISC Twin Cities and the Neighborhood Development Center.