| BRIEF DESCRIPTION OF ORGANIZATION'S MISSION |
FORM 990, PART I, LINE 1: LOW INCOME INVESTMENT FUND ("LIIF") IS A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION WHICH PROVIDES A COMPREHENSIVE RANGE OF PROGRAMS TO INCREASE THE AVAILABILITY OF CAPITAL IN LOW INCOME COMMUNITIES AT AFFORDABLE RATES AND TERMS. |
| PROGRAM SERVICE DESCRIPTION |
FORM 990, PART III, LINE 4A: Lending Activities: Because no single approach alone can lift a family out of poverty, LIIF employs a holistic strategy that focuses on five priority programs -housing, child care, education, transit oriented development and health (through access to healthy food and health care clinics), with green development as a cross-cutting theme. These programs are supported by LIIF's federal policy presence that works to preserve and maintain community capital programs. LIIF uses innovative strategies to attract private capital to areas with underserved communities that would otherwise be out of reach. Since inception, we have provided over $1.5 billion to projects serving low income families and individuals, and these investments have leveraged nearly $7.5 billion in other capital investments. LIIF's work supports those most in need - of the 1.7 million people served through LIIF's financing and technical assistance - over 97% have been low income. LIIF's flexible and affordable capital fills a gap for community development organizations that are unable to consistently access loans from traditional financial institutions. LIIF makes direct loans through its revolving loan fund ("RLF") and other loan funds. LIIF also underwrites and packages loans acquired by banks, other intermediaries and conventional lenders through innovative program specific funds to support community development organizations across the nation. LIIF complements its loans with thorough, time-intensive technical assistance ("TA"). LIIF's TA guides organizations through real estate development, helping them develop and sustain their financial stability to ensure prudent planning and management of their financial obligations and ultimately, and enabling these community borrowers to ready their organizations to approach conventional lenders. Affordable housing is the cornerstone of LIIF's work, comprising half of the organization's historical activity. Since its inception, LIIF has invested more than $855 million to support the development of 62,000 units of affordable housing, which has produced enhanced living conditions and saved low income families more than $12.5 billion through reduced housing costs. Availability of affordable housing is vital in creating a foundation for family stability and community revitalization, and it plays a critical role in advancing family well-being-linked, as it is, to employment, wage gains, educational attainment and generally improved health for poor families. Education is a key component in enhancing opportunities for economic mobility and asset growth for low income households. LIIF launched its education program in 1998, and currently focuses in helping charter schools bring quality educational opportunities to underserved, distressed communities. LIIF's education program uses a three-pronged approach to achieve its goals: providing direct financing for schools, leveraging third-party capital for schools, and building the capacity of school developers and the education system. LIIF is one of the largest CDFI charter school financiers in the nation, having invested over $406 million supporting the development of 72,000 quality charter school spaces for low-income students. LIIF's Transit Oriented Development (TOD) Program invests in projects that place affordable housing and vital community services close to accessible transportation. LIIF manages the $50 million Bay Area Transit-Oriented Affordable Housing (TOAH) fund, an innovative structured fund that provides developers with flexible, affordable capital to purchase or improve available property near transit lines in the Bay Area. |
| PROGRAM SERVICE DESCRIPTION |
FORM 990, PART III, LINE 4B: Other Development Services: Other development services include key emerging initiatives including those supporting environmentally green initiatives, healthy foods, and TOD program development. Health: LIIF invests in federally qualified health clinics (FQHCS) that help bring critical capital to help meet the growing healthcare needs of low-income communities. LIIF partnered with the Goldman Sachs Urban Investment Group, The Kresge foundation, Primary Care Development Corporation, Rockefeller Foundation, and The Reinvestment Fund to finance health centers nationwide launching the collaborative for healthy communities, a $130 million, three-year, initiative that will provide a new source of capital for community health centers across the country. Healthy Food Markets: Millions of people in low income communities lack access to stores selling nutritious, healthy food. Often, the only food available in these neighborhoods is from fast food restaurants or convenience stores with primarily packaged and processed food. Understanding the importance of healthy food options for families and communities, LIIF provides financing to build or expand healthy food outlets to underserved communities across the country. LIIF also leads the $30 million New York Healthy Food and Healthy Communities fund, with partner The Food Trust-a fund that increases access to healthy foods for the health and wellbeing of low income families and communities in New York. |
| PROGRAM SERVICE DESCRIPTION |
FORM 990, PART III, LINE 4C: Child Care Program: Quality child care enables parents to work or attend school without worry for their children's well-being. LIIF launched its child care program in 1998, offering loans, grants and technical assistance to support the development of high quality child care slots for low income families. Since the program's inception, LIIF has provided trainings and workshops on the development and financing of child care center facilities and one-on-one technical assistance to providers. In addition, LIIF has offered millions of dollars in loans and planning grants. Its child care goals are accomplished through three primary funds: the award-winning Child Care Facilities Fund, the Los Angeles Emergency Bridge Fund, and the Fund for Children and Communities. |
| PROGRAM SERVICE DESCRIPTION |
FORM 990, PART III, LINE 4D: National Policy: LIIF designs and implements advocacy strategies to ensure the organization is active in federal policy initiatives relevant to its main program areas. The national policy program advances the policy agenda of LIIF, leveraging relationships and building dynamism around the organization and its mission of poverty alleviation. |
| FORM 990 REVIEW PROCESS |
FORM 990, PART VI, SECTION B, LINE 11B: GRANT THORNTON LLP AND THE LIIF STAFF WORK TOGETHER IN GATHERING THE REQUIRED TAX INFORMATION NECESSARY TO COMPLETE THE TAX RETURNS. THE INITIAL DRAFT RETURNS ARE REVIEWED BY GRANT THORNTON AND LIIF FINANCE STAFF; ITEMS ARE DISCUSSED AND REVIEWED, WITH RECOMMENDED CHANGES REFLECTED IN THE RETURNS BEFORE FILING. A COPY OF THE TAX RETURN IS ALSO PROVIDED TO THE ORGANIZATION'S GOVERNING BODY BEFORE FILING. |
| CONFLICT OF INTEREST POLICY |
FORM 990, PART VI, SECTION B, LINE 12C: KEY EMPLOYEES AND MANAGEMENT OFFICIALS ARE REQUIRED TO DISCLOSE IMMEDIATELY INTERESTS THAT COULD GIVE RISE TO CONFLICTS. MEMBERS OF THE BOARD OF DIRECTORS ARE REQUIRED ANNUALLY TO COMPLETE CONFLICT OF INTEREST SURVEYS IDENTIFYING POTENTIAL CONFLICTS. THE RESULTS OF THESE SURVEYS ARE COMMUNICATED AMONGST THE ENTIRE BOARD TO ENSURE ALL MEMBERS ARE AWARE OF POTENTIAL CONFLICTS THAT MAY ARISE DURING THE YEAR. MEMBERS OF LOAN COMMITTEES MUST RECUSE THEMSELVES FROM DECISIONS THAT COULD GIVE RISE TO CONFLICTS OF INTEREST. IN GENERAL, CONFLICTS OF INTEREST ARE LIMITED TO INDIVIDUAL TRANSACTIONS IN WHICH LIIF IS CONSIDERING UNDERTAKING WITH ORGANIZATIONS WITH WHICH A BOARD MEMBER MAY HAVE A RELATIONSHIP. AS A RESULT, IT IS RELATIVELY STRAIGHTFORWARD TO MONITOR COMPLIANCE. |
| PROCESS USED TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL |
FORM 990, PART VI, SECTION B, LINES 15A AND 15B: KEY EMPLOYEES, AS DEFINED BY IRS REGULATIONS AND INCLUDING THE CEO, ARE INCLUDED IN ANNUAL COMPENSATION REVIEW AND APPROVAL. AN OUTSIDE INDEPENDENT CONSULTANT CONDUCTS A REVIEW OF COMPARABLE DATA DRAWN FROM VARIOUS SOURCES INCLUDING INDUSTRY DATA AND COMPENSATION REPORTED BY SIMILAR ORGANIZATIONS, INCLUDING REVIEW OF 990 FILINGS. THESE SUMMARIES ARE PRESENTED TO THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS (COMPRISED OF INDEPENDENT DIRECTORS) WHICH IS RESPONSIBLE FOR REVIEWING COMPENSATION AND RECOMMENDING ADJUSTMENTS TO THE BOARD OF DIRECTORS WHO APPROVE THE ADJUSTMENTS. DELIBERATIONS AND DECISIONS ARE SUBSTANTIATED. |
| DOCUMENTS AVAILABLE TO THE PUBLIC |
FORM 990, PART VI, SECTION C, LINE 19: LIIF MAKES AVAILABLE TO THE PUBLIC ITS FINANCIAL STATEMENTS IN SUMMARY FORM THROUGH ITS ANNUAL REPORT, WHICH IS DISSEMINATED WIDELY AND AVAILABLE TO OTHERS UPON REQUEST. THE ORGANIZATION'S BY-LAWS, FORM 990 FILING AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. |
| OTHER CHANGES IN NET ASSETS OR FUND BALANCES |
FORM 990, PART XI, LINE 9: REVERSAL OF PRIOR YEAR DEBT FORGIVENESS ($60,391) REVERSAL OF PRIOR YEAR CONTRIBUTIONS ($70,000) PRIOR YEAR GRANTS REFUNDED $6,167 |
Attach to Form 990 or 990-EZ.