Housing and health sector partnership funds affordable housing development
Local Initiatives Support Corporation
Charlotte, North Carolina
Can anchor institutions, such as hospitals or large employers, create a capital funding model to finance the preservation or construction of affordable housing that directly impacts social determinants of health in low-income communities?
The project with Local Initiatives Support Corporation (LISC) addresses the growing inequities in housing in the Charlotte area through the development of the Charlotte Housing Opportunity Investment Fund (CHOIF), an innovative financing vehicle that will produce or preserve mixed-income housing for families earning 30 – 120% of Area Median Income. The project will also finance coordinated wraparound resident services to address some of the social determinants of health, including transportation, access to food, and financial stability. The long-term goal is to incentivize hospitals, insurers, and other health care partners to invest in housing to improve health outcomes.
With a contract award from Fannie Mae, the LISC team was able to:
Develop a social determinants of health assessment tool.
Build out and test the initial CHOIF fund structure and capitalization model.
Since receiving the contract award from Fannie Mae, LISC has successfully grown the fund for the CHOIF to over $50 million through investments from health care providers and systems. By the end of the contract with Fannie Mae, LISC expects to be able to leverage its financial model to develop or preserve as many as 1,500 housing units of affordable housing.
Local Initiatives Support Corporation (LISC) is one of the largest organizations supporting projects to revitalize communities and bring greater economic opportunity to residents. LISC’s areas of focus include affordable housing, better schools, safer streets, and growing businesses and programs that improve residents’ financial outlook. They provide the capital, strategy, and know-how to local partners to get this done. Their work impacts the lives of millions of people in both rural areas and urban centers across the United States.