New Partnership Generates $10 Million in Low Cost Financing for Affordable Housing Development

LISC recently joined forces with the Washington Area Housing Trust Fund (WAHTF) to help create more affordable homes in Washington DC. Together, LISC and the WAHTF are providing low interest rate acquisition loans to nonprofit housing developers so they can quickly purchase property or land.

WAHTF is a Community Development Financial Institution (CDFI) providing loans and technical support to housing developers in metropolitan Washington.

WAHTF is one of a select number of CDFIs that are a part of the District of Columbia‘s Site Acquisition Financing Initiative (SAFI). As a SAFI lender WAHTF manages a pool of city funds that are available to pre-qualified, non-profit housing developers in Washington DC. To leverage their funds the City requires that the SAFI lender provide a one to one match thereby doubling the amount of financing available for preserving or developing affordable housing. LISC will provide the one-to-one match for these SAFI funds.

According to Peggy Sand, President of the WAHTF, “We were looking for a partner that was committed to affordable housing and could bring additional resources to the table. Now, WAHTF borrowers get the added expertise of LISC.” In a letter from the Department of Housing and Community Development, Director Jay Greene wrote “We are encouraged to learn of the funding partnership between LISC and WAHTF to effectively leverage our dollars.”

In September 2006, LISC and the WAHTF partnered to provide $1.8 Million in acquisition financing to So Others Might Eat (SOME) for the purchase of a vacant multifamily property on Good Hope Road SE. SOME will convert the property to 46 units
for formerly homeless single adults, seniors, and others with special needs.

According to Sand, this partnership benefits borrowers like SOME by “streamlining the acquisition process so they can have access to quick, affordable acquisition financing which is needed in this competitive market.”

LISC welcomes the WAHTF as a new lending partner and looks forward to working together toward the common goal of creating affordable housing.