LISC invests $30.5M into Detroit neighborhoods in 2008

Detroit LISC invested $30.5 million into Detroit community and neighborhood development in 2008, which is the largest annual investment made in its 19-year history in the city. Most of this money was spread among 30 community development partners in its five targeted geographic areas: Central Woodward ($22.1 million); East ($980,000); Northeast ($614,000); Northwest ($346,000); and Southwest ($5.5 million).

Two prime examples of LISC's support include an equity investment of $12.5 million in New Market Tax Credits for the rehabilitation of the Argonaut Building in New Center and $4.2 million of
Low Income Housing Tax Credits for two apartment rehabs in Southwest Detroit.

LISC is also providing operating funds to community development corporations with which it works -- helping to keep their doors open in tough fundraising times.
"With the economic situation, which is just unprecedented, we have to be able to be nimble and flexible and work with our partners on the ground," says development officer Jacqueline Burau. "We are tweaking our financing to meet the need, to make things happen in the community."

Recoverable grants for predevelopment work have also been upped, which help projects get off the ground early in the process. Despite the state of the housing market, Burau says that LISC remains committed to their brick and mortar mission. "Most of our investment continues to go to physical development, whether that be housing or commercial," she says.

LISC is able to ride out the current funding storm because it raises money in three-year chunks, meaning that money they are spending this year was raised in 2007.

Source: Jacqueline Burau, Detroit LISC
Writer: Kelli B. Kavanaugh

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