Capital Solutions to Advance Racial Equity

Organization Name: Low Income Investment Fund (LIIF)

Project Title: Capital Solutions to Advance Racial Equity

Project Location: Citywide

Project Description:
LIIF is actively participating in two initiatives aimed at enhancing affordable housing availability in urban and underserved communities: the Black Developer Capital Initiative (BDCI) and the Growing Diverse Housing Developers (GDHD) initiative. Together, these initiatives represent a $30 million commitment to creating equitable housing solutions nationwide by increasing the number of racially diverse developers and addressing systemic barriers in the real estate development industry. Led by LIIF, Capital Impact Partners, and Reinvestment Fund, GDHD combats the lack of representation in real estate by providing tailored resources, technical assistance, and capital access to foster a new generation of developers. GDHD is a nationwide program that includes 27 sponsors, 9 of which are sponsored by LIIF. BDCI supports Black-led affordable housing developers, who often face systemic barriers to capital access. BDCI offers a revolving Line of Credit (LOC) for early-stage project financing at favorable rates. Since its inception, we have closed seven project loans and four Lines of Credit totaling $10.5MM. In fiscal year 2024, LIIF invested $6.6MM in project loans across New York State.

Community Impact:
At LIIF, we prioritize racial equity in our lending practices, recognizing that systemic inequities have long hindered developers of color from accessing capital from traditional lenders. According to the U.S. Census Bureau’s 2021 data, households with a white, non-Hispanic householder had ten times more wealth than those with a Black householder, with white households representing 65.3% of U.S. households and holding 80% of the nation's wealth, while Black households made up only 13.6% and owned just 4.7%. Historical injustices, such as redlining and exclusion from programs like the G.I. Bill, have severely limited economic mobility and wealth-building for Black and Latino families, leaving oppressive legacies that continue to manifest in current policies, including the rollback of fair housing laws and systemic discrimination. To combat these injustices, LIIF is committed to driving $5 billion to advance racial equity over the next decade.

Organization Description:
LIIF is a nonprofit community development financial institution (CDFI) that mobilizes capital and partnerships to create more equitable access to opportunity for all. We focus on Black, Latino, and other people and communities of color whose opportunities have been limited by exclusionary policies and practices. We invest, partner and advocate based on our belief that high-quality affordable housing, early care and education, educational opportunities, good jobs and access to health care are key to individuals’ and communities’ well-being.

Team Members:

NYC-based GDHD sponsors: Community League of the Heights (CLOTH) & SMJ Development
NYC-based BDCI sponsors: Apex Builders, Genesis Companies, Lemor Development Group, & Kalel Companies