Posted by:
Steve Dubb
Illinois, New Mexico funds win awards
Two community development financial institutions or CDFIs – the Chicago-based IFF (formerly Illinois Facilities Fund) and the Santa Fe, New Mexico-based Homewise took away top honors at the 2008 national Opportunity Finance Network conference, held earlier this month in Albuquerque, New Mexico. As part of the second-annual Wachovia NEXT Awards for Opportunity Finance (which are co-sponsored by Opportunity Finance Network, the Wachovia Foundation, and the MacArthur Foundation), the two organizations received grants and low-cost program-related investment loans totaling $8.25 million. IFF received $5.5 million (a $500,000 grant and a $5 million program-related investment) and Homewise received $2.75 million (a $250,000 grant and a $2.5 million program-related investment). The award amounts are based on each organization’s asset size – $5.5 million for CDFIs with assets over $50 million and $2.75 for those with assets in the $10-$50 million range.
IFF (formerly Illinois Facilities Fund) was chosen because of its growth from its home base in Illinois to a five-state region that includes Missouri, Iowa, Indiana, and Wisconsin. Its lending focuses primarily on financing the development of community facilities, including nonprofit child care centers and health clinics. Indeed, among CDFIs today it is the Midwest’s largest community facility lender. Founded in 1990, to date IFF has financed or developed hundreds of nonprofit-owned facilities and real estate projects, which serve more than 700,000 low-income and special-needs clients each year.
Homewise’s award is based in large measure on its HomeSmart program, which helps low- and moderate-income families successfully purchase, maintain and improve their homes by providing them with education, loans and other services. Founded in 1986, as Neighborhood Housing Services of Santa Fe in 1986, Homewise has helped over 1,200 people purchase homes and has helped over 600 people keep their homes by providing financial and technical assistance for home repair. In addition, Homewise has trained and counseled more than 3,000 people toward successful homeownership and has built over 150 quality affordable homes.
According to the Opportunity Finance Network, nationwide to date the community development finance industry has provided $25 billion in finance to serve underserved markets in all 50 states, yielding more than 200,000 jobs, 500,000 housing units, and 5,000 community facility projects.