TWIN CITIES, MN: As it celebrates its 35th Anniversary, Local Initiatives Support Corporation (LISC) Twin Cities announced another major milestone: $1 billion dollars of investments. Over three and a half decades, LISC Twin Cities has channeled all of this capital into transformative organizations and projects, strengthened community development infrastructure and changed systems that create and perpetuate inequality of opportunity.
LISC Twin Cities’ $1 billion in grant, debt and equity investments have resulted in 21,000 homes for families living on low- and moderate incomes, including people experiencing homelessness; 3.2 million square feet of community facility and neighborhood commercial space - roughly 75% the size of Mall of America; and 10,000 people receiving integrated services to increase their income, improve their credit scores, and attain quality jobs and careers. Hundreds of local nonprofits have received critical grant funding from LISC, boosting their capacity to transform neighborhoods through affordable housing, arts & culture, economic development, health, financial coaching and career pathways. At the height of the COVID pandemic, LISC invested $2.5 million in emergency relief for local nonprofits, small businesses and individuals served by its network of Financial Opportunity Centers (FOCs).
In the past five years alone, LISC has invested $333 million in the Twin Cities - a third of its 35-year portfolio. “Our deep community relationships, access to capital, momentum and appetite for innovation positioned us to rise to the acute racial equity, health and economic challenges of the past few years,” said Peter McLaughlin, Executive Director of LISC Twin Cities. “We have been laser-focused on advancing racial equity, driving equitable and transformative development, and furthering an economy that works for everyone. Simply put, LISC partners with organizations rooted in the communities where they work, and unlocks capital for people, places and projects that have been left behind.”
LISC also invests in organizations implementing arts and culture projects in districts like East Lake Street, Little Africa and Little Mekong. Its 35-year track record of affordable housing investments includes more than $240 million since 2019, with $120 million of that for Naturally-Occurring Affordable Housing (NOAH) projects. An expansion of the FOC Network starting in 2019 added four organizations led by people of color to provide culturally-specific, one-on-one financial coaching and employment training to neighbors who know and trust them.
In 2020, the organization established the $35 million Community Asset Transition (CAT) Fund, supporting equitable, transformative development of corridors that were impacted by the civil unrest in the Twin CIties in 2020. The following year, LISC Twin Cities launched the Developers of Color (DOC) Initiative - the first in the region that provided significant, flexible grants to supplement training, technical assistance, peer networks, and access to capital. Aimed at supporting emerging developers to get their projects over the finish line and transform their neighborhoods, the DOC cohorts represent the next generation of the development industry.
McLaughlin believes this is a critical time to strengthen and accelerate support of communities, equitable development and emerging developers. “In 2019, we made a stretch goal of increasing our lending to developers of color, both nonprofit and for-profit, from 13% to 50%. Years of predevelopment grants and technical assistance weren’t getting projects done, and developers were bleeding and burning out. They needed capital. In 2022, 97% of LISC loans in the Twin Cities were to developers of color, and that will be transformative”.
“What we know, from 35 years of work here, is that Twin Cities communities are centers of innovation," said Michael T. Pugh, LISC CEO. “Our $1 billion in investments has been fueled not just by the commitment of our local team, but by the creativity of neighborhood nonprofits, developers, business owners, funders, policymakers and residents—all working to advance equity and opportunity for all. It is a remarkable local story of connection and community, and all of us at LISC are proud to be a part of it."
McLaughlin adds, “We have also been very fortunate to count on the strong support of donors and partners, including McKnight Foundation, Bush Foundation, John & Denise Graves Foundation, St. Paul & Minnesota Foundation, Minneapolis Foundation, Allina, Wells Fargo, JPMorgan Chase, all levels of government, and many others who are engaged in this important work and support us with funds, resources and ideas. Every dollar they’ve invested in LISC Twin Cities has leveraged nine dollars of outside capital through our national organization.”
LISC Twin Cities celebrated both 35 years and the first $1 billion of investments on November 2, 2023 at the new Regional Apprenticeship Training Center (RATC) in Minneapolis.
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With residents and partners, LISC forges resilient and inclusive communities of opportunity–great places to live, work, visit, do business and raise families. Since 1988, LISC Twin Cities has invested more than $1 billion to create or preserve 21,000 affordable homes, 3.2 million square feet of community facility and neighborhood small business space, and provided 10,000 families with financial coaching and career pathway opportunities through its network of Financial Opportunity Centers. To learn more, visit lisc.org/twin-cities or follow us on X (formerly known as Twitter), Linkedin, Facebook and Instagram.