Capital Impact Partners

Capital Impact Partners
Founded 1978
Type Non-Profit CDFI
Location
Area served
United States
Method Loans, Grants, Investments
Mission Community Development
Website www.capitalimpact.org

Capital Impact Partners, or simply Capital Impact, is a Congressionally chartered,[1] District of Columbia nonprofit and certified community development financial institution (CDFI) that provides credit and financial services to underserved markets and populations in the United States.[2][3]

Capital Impact was created in 1978 as the nonprofit arm of the National Cooperative Bank (NCB) as part of the National Consumer Cooperative Bank Act.[1][3][4] Capital Impact became independently certified as its own CDFI by the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) in 2011.[2] The company's president and CEO is Ellis Carr, the chief lending officer is Scott Sporte, the chief financial officer is Natalie Gunn, and Amy Sue Leavens is the chief legal counsel.[5][6][7] From 1994 until 2016, Terry Simonette served as president and CEO of Capital Impact until Ellis Carr was named as his replacement.[8]

The company is among the largest CDFIs in the country. As of 2015, they invested over $2 billion[9] into senior care, affordable housing, health care, education and public nutrition projects in distressed and low-income communities across the country.[2][3] These investments include the creation of over 9,000 units of affordable assisted living; more than 35,000 units of affordable housing; 3 million square feet of health center space providing more than 1 million patient visits annually; $500 million for developing charter schools creating more than 200,000 seats for children; and healthy food retail in over 60 locations. Capital Impact has created around 31,000 new jobs for low-income individuals.[9][4][10] In 2015, Capital Impact became a member of the Federal Home Loan Bank of Atlanta.[11] Capital Impact has received the highest social impact and financials ratings and a Policy Plus rating from Aeris, a company which rates CDFIs, each year since Aeris was established in 2007.[12] In October 2016, Capital Impact received two allocations from the Treasury Department's CDFI Fund, including a $2 million financial assistance (FA) award.[13]

Projects

Capital Impact provides financing to individuals, organizations and companies in order to build new businesses or expand existing facilities that increase access to services for populations made up primarily of low to moderate income residents.

Cooperative development

With its origins in the 1978 National Consumer Cooperative Bank Act, Capital Impact continues with the economic advancement of cooperatives as one of its initiatives. They partner with the National Cooperative Grocers Association to provide underwriting and loan administration services to food co-ops across the country.[14] In 2015, Capital Impact awarded $40,000 to the Democracy at Work Institute and the United States Federation of Worker Cooperatives through its first Co-op Innovation Award.[15]

Affordable housing

Capital Impact Partners launched the Cornerstone Partnership, which helps shared-equity housing programs grow and share best practices.[16] They also invested in the cooperative business ROC USA. The organization helps owners of manufactured homes work to together to purchase their land.[17]

In 2011, Capital Impact received a $2 million grant from the Social Innovation Fund, a program of the Corporation for National and Community Service. Capital Impact used the grant to replicate shared equity homeownership programs that enable new homebuyers to partner with a government or nonprofit agency acting as a co-investor, providing the homebuyer with public funds to reduce costs. In return, homebuyers agree to share their equity appreciation to preserve affordability and return funds to the initial public investment.[18] In October 2015, a piece in the Dallas Observer featured Capital Impact's "Inclusionary Calculator" to help cities address affordable housing zoning issues.[19] In 2016, Capital Impact was awarded $4.8 million from the CDFI Fund's Capital Magnet Fund, which are given to aid low-income families and economically distressed communities.[20]

Education

As of December 31, 2013, Capital Impact had disbursed $630.6 million to charter schools, representing 30% of all charter school lending nationwide.[21] Examples of this financing include the Jalen Rose Leadership Academy,[22] Detroit Edison Public School Academy[23] and Henry Ford Academy in Detroit,[24] the El Sol Arts and Science Academy in Los Angeles, Palmetto Charter School in Florida and EdVisions, a teacher-owned cooperative that opened the Minnesota New Country School.[25][26][27]

Capital Impact was included in an $8 million grant given to the National Charter School Lending Collaborative which supports high-quality education for low-income families in July 2016.[28] In August 2016, it was announced that Capital Impact had financed $7.3 million in the building of the West Michigan Academy of Environmental Science.[29]

Health care

After Hurricane Katrina, Capital Impact financed $700,000 for a Tulane University-supported community health center in the New Orleans neighborhood Broadmoor. The center serves 1,300 patients annually and created more than 200 permanent jobs in the community.[30] In 2013, Capital Impact financed a 10-year, $5 million loan to the Sonoma Valley Community Health Center.[31] Capital Impact is an investor in the Brockton Neighborhood Health Center, which is the town’s largest employer.[32] In October 2015, Capital Impact financed a $3.8 million expansion for a Native American Health Clinic in Sacramento.[33]

Capital Impact established its Healthier California Fund to assist community health centers and clinics to meet Affordable Care Act requirements in March 2016 with $20 million.[34] In July 2016, it funded $1 million of the renovation of Tri-City Health Center's Irvington Dave Clinic in Fremont, California through that fund.[35][36][37] That same year, Capital Impact gave a $1 million loan to Ole Health through its CPCA Ventures Program.[38] Capital Impact also funded Axis Community Health's new Pleasanton health center in September 2016.[39] In October 2016, Capital Impact received a $2.4 million Healthy Food Financing Initiative (HFFI) award through the 2016 program round of the Treasury Department's CDFI Fund.[13]

Healthy food

Capital Impact administers The California FreshWorks Fund, a $272 million loan fund designed to finance inner-city grocery retailers and increase access to healthy foods and alleviate food deserts in those areas. First Lady Michelle Obama announced the loan fund at a ceremony in 2011.[3][4][10]

Capital Impact also manages the Michigan Good Food Fund, a public-private partnership that increases access to fresh produce and meat in under-served communities while also expanding business opportunities for entrepreneurs in the food and agriculture sector through loans and grants.[40]

In addition to managing the FreshWorks and the Michigan Good Food Fund, Capital Impact provides financial and developmental services to healthy food projects including the Northgate Gonzalez Markets, the Imperial Fresh Market in Detroit, LA Prep in California,[41][42][43][44] and Produce on the Go, a mobile food market in Merced County, California.[45]

Senior care

In 2006, Capital Impact received a grant from the Robert Wood Johnson Foundation to help create the The Green House Project, an alternative to the traditional nursing home. Capital Impact managed the initiative until it became an independent organization in 2016. Developed by Dr. Bill Thomas, Green House homes provides nursing care to 10 to 12 older adults in a small, home-like setting with the goal of providing more autonomy in decision-making, more self-directed care and more social connections. As of 2015, there are 153 Green House homes on 35 campuses in 25 states across the country including The Harry and Jeanette Weinberg Green House Homes at Mirasol in Loveland, Colorado.[4][17][41][46][47]

Capital Impact also administered the Village to Village Network, a peer network group that facilitates older adults aging in place based on a model started by Beacon Hill Village, until it became an independent organization in 2015. Villages are community-based membership organizations that provide support through volunteering and resource referrals for older adults so they can age in their own homes and communities.[48]

In 2015, Capital Impact partnered with the AARP and the Calvert Foundation to establish the Age Strong impact investing program to help older adults remain in their communities as they age. The Age Strong effort identifies and provides financing to projects that help low-income people over 50 secure housing, have access to healthy food and health care, improve their financial situations and remedy common problems associated with isolation.[49] In August 2016, it was announced that Capital Impact gave $3 million in funding from the Age Strong fund toward Keystone Healthcare Development Service's Federally Qualified Health Center (FQHC) in Transfer, Pennsylvania operated by Primary Health Network.[50]

In September 2016, Capital Impact Partners loaned funding to the Mustard Seed Project of Key Peninsula in order to purchase a former restaurant and five acres surrounding it to house the first senior housing on the Key Peninsula.[51]

Other services

Capital Impact also facilitates financing deals that include New Markets Tax Credits awarded by the Department of Treasury through its CDFI Fund to promote access to capital and local economic growth in urban and rural low-income communities across the nation.[4][52]

Detroit development

In 2006, Capital Impact began working intensively within the urban communities of Detroit, Michigan. From 2010 until 2015, Capital Impact partnered with the Living Cities Integration Initiative to bring economic development to Detroit and densify its urban core.[4]

As part of its efforts to create affordable housing and mixed-use development in the city, Capital Impact launched the $30-million Woodward Corridor Investment Fund with the Kresge Foundation and the Detroit Neighborhoods Fund with JPMorgan Chase. In addition to new construction and renovation, Capital Impact finances projects that renovate and preserve historic buildings in Midtown Detroit.[53][54]

Projects benefiting from these investments include the renovation of the Professional Plaza, Rainer Court, Nailah Commons, the Scott at Brush Park,[55] the James Scott House,[56] and the Regis Houze which is connected to the Hotel St. Regis.[57][58][59] Between 2009 and 2016, Capital Impact invested more than $100 million in development projects.[60] The company invested in the expansion of Imperial Fresh Market,[61] the renovation of the A. Alfred Taubman Center for Design Education at the College for Creative Studies which holds the Henry Ford Academy Charter School, and the expansion of the Detroit Edison Public School Academy.[23]

In 2013, Capital Impact won the Wells Fargo NEXT Award for Opportunity Finance for their work in education, affordable housing and mixed-use projects in Detroit.[62] In 2016, Capital Impact contributed to the financing for the renovation of the Elliott Building into loft-style apartments with two levels of retail space.[63]

See also

References

  1. 1 2 Statute 92, National Consumer Cooperative Bank Act, Public Law No. 95-351 of 20 August 1978 (in English). Retrieved on 11 December 2015.
  2. 1 2 3 Andrews, Nancy; Hinkle-Brown, Don (January 27, 2015). "Capital Magnet Fund creates 'bang for the buck' in affordable housing". TheHill.com. News Communications, Inc. Retrieved May 6, 2015.
  3. 1 2 3 4 Pothering, Jessica. "How the First Lady Helped Small Grocery Businesses Reduce 'Food Deserts' in California". Entrepreneur.com. Entrepreneur Media Inc. Retrieved May 6, 2015.
  4. 1 2 3 4 5 6 Kanani, Rahim (January 8, 2012). "NCB Capital Impact: Investing Billions into Underserved Communities Nationwide". Forbes.com. Forbes Inc. Retrieved May 6, 2015.
  5. ↑ O'Meara, Mark. "Late Allocation Announcements, Market Maturity Create High Demands for NMTCs" (PDF). Novoco.com. Novogradac & Company LLP. Archived from the original (PDF) on December 22, 2015. Retrieved May 6, 2015.
  6. ↑ "People on the Move, Natalie Gunn - Capital Impact". washingtonbusinessjournal.com. May 9, 2016. Retrieved May 16, 2016.
  7. ↑ Slavinsky, Roksana (March 11, 2015). "Amy Sue Leavens - Capital Impact". bisnow.com. Bisnow. Retrieved May 6, 2015.
  8. ↑ New Leaders at the Rainforest Alliance and the American Ballet Theatre, Anais Strickland, January 15, 2016, The Chronicle of Philanthropy, May 17, 2016
  9. 1 2 Amy Sue Leavens - Capital Impact Partners, March 11, 2015, Roksana Slavinsky, Bisnow, May 17, 2016
  10. 1 2 "Capital Impact Partners Investment Partner Profile". wkkf.org. WK Kellogg Foundation. Retrieved May 6, 2015.
  11. ↑ Connecting Big Banking to Community Investment, Oscar Perry Abello, February 19, 2016, Next City, May 17, 2016
  12. ↑ The Policy Behind the Investing Behind That New Neighborhood Grocery, Oscar Perry Abello, December 21, 2015, Next City, May 17, 2016
  13. 1 2 "FY 2016 CDFI Program Awardees" (PDF). CDFI Fund. Retrieved October 25, 2016.
  14. ↑ Pugh, C.E. "Investing in Our Cooperative Future". Triangle Park Creative. Retrieved November 2, 2015.
  15. ↑ "Capital Impact Partners' First "co-op Innovation Award" Provides $40,000 to Two Leading Cooperative Organizations". NCBA CLUSA. Retrieved November 2, 2015.
  16. ↑ "NCB Capital Impact Receives Coveted $2 Million Social Innovation Fund Award for its Cornerstone Partnership Initiative". AffordableOwnership.org. Community Solutions Group, LLC. 27 September 2013. Retrieved May 7, 2015.
  17. 1 2 Shin, Laura (August 29, 2014). "Innovative Loans Secure Affordable Housing". aarp.org. AARP. Retrieved May 6, 2015.
  18. ↑ "Capital Impact Partners". Corporation for National & Social Service. Retrieved November 2, 2015.
  19. ↑ Schutze, Jim (27 October 2015). "A Rational Way to Weight Affordable Housing, Not That We Want To Be Rational". dallasobserver.com. Dallas Observer, LP. Retrieved 11 December 2015.
  20. ↑ "Capital Magnet Fund Award Book" (PDF). CDFI Fund. Retrieved October 25, 2016.
  21. ↑ "2014 Charter School Facility Finance Landscape". charterschoolcenter.org. US Department of Education. Retrieved May 7, 2015.
  22. ↑ Rose, Jalen (1 February 2013). "Jalen Rose Leadership Academy: Bringing a Quality Education and Jobs to Detroit". huffingtonpost.com. TheHuffingtonPost.com, Inc. Retrieved May 7, 2015.
  23. 1 2 Commercial lender dedicated to underserved communities -including Detroit, Kirk Pinho, April 2, 2016, Crain's Detroit, May 17, 2016
  24. ↑ The Taubman Center: Sparking creativity and growth in Detroit, Roz Edward, February 24, 2016, Michigan Chronicle May 17, 2016
  25. ↑ "Capital Resources Lending Activity". lisc.org. LISC. Archived from the original on May 18, 2015. Retrieved May 7, 2015.
  26. ↑ Donovan, Annie. "Subsidy and the Charter School Facilities Finance Market" (PDF). bostonfed.org. Federal Reserve Bank of Boston. Retrieved May 7, 2015.
  27. ↑ Johnson, Matt M. (15 April 2015). "Charter school buys Palmetto property for $3.5M". bradenton.com. Bradenton Partners. Archived from the original on May 18, 2015. Retrieved May 7, 2015.
  28. ↑ "U.S. Department of Education Awards Grants to Help Public Charter Schools Obtain Facilities". Office of Innovation & Improvement. July 5, 2016. Retrieved October 25, 2016.
  29. ↑ Cathy Runyon (August 6, 2016). "Despite appearances, Academy of Environmental Science is ready for school year". MLive. Retrieved October 25, 2016.
  30. ↑ Arnaud LePape, Virginie; Kelly, Jon. "What Was and What Will Be: Helping Rebuild New Orleans with the Community Green" (PDF). Novoco.com. Novogradac & Company LLP. Archived from the original (PDF) on May 18, 2015. Retrieved May 6, 2015.
  31. ↑ "Health Center secures finances for new site". sonomanews.com. The Sonoma Index Tribune. September 30, 2013. Retrieved May 6, 2015.
  32. ↑ "Clip of the Day: It All Started With a Van". cdficonnect.org. Opportunity Finance Network. 15 August 2014. Retrieved 11 December 2015.
  33. ↑ Robertson, Kathy (27 October 2015). "Native American health clinic in midtown nears $3.8M fundraising goal". bizjournals.com/sacramento. Sacracmento Business Journal. Retrieved 11 December 2015.
  34. ↑ "$20M in health care loans available". Daily Republic. March 16, 2016. Retrieved October 25, 2016.
  35. ↑ Nicole Norton (August 16, 2016). "Tri-City Health Centers Irvington Dave Clinic reopens after renovation". Tri-City Voice. Retrieved October 25, 2016.
  36. ↑ Scott Sporte. "To serve all Californians, expanded health clinic capacity is needed". Capitol Weekly.
  37. ↑ Anne DiNardo (July 29, 2016). "Tri-City Health Plans Clinic Renovation In California". Healthcare Design Magazine. Retrieved October 25, 2016.
  38. ↑ Ole Health receives funding from Capital Impact, March 14, 2016, Napa Valley Register, May 17, 2016
  39. ↑ Jeb Bing (September 21, 2016). "Axis Community Health doubles capacity for health care to needy". Pleasanton Weekly. Retrieved October 25, 2016.
  40. ↑ Meyer, Zlati (June 19, 2015). "Fund offers loans to make healthy food more accessible". Gannet Company. Retrieved November 2, 2015.
  41. 1 2 "Capital Impact Partners". healthyfoodaccess.org. Healthy Food Access Portal. Retrieved May 6, 2015.
  42. ↑ Gonzalez, Oscar. "CDFI New Markets Tax Credit Alliance". Retrieved May 7, 2015.
  43. ↑ "El Rancho Marketplace Opens in San Obispo County". progressivegrocer.com. Stagnito Media. 11 December 2012. Retrieved May 7, 2015.
  44. ↑ "Midtown and Northwest Detroit Draw New Apartments, Businesses, Expansions". dbusiness.com. Hour Media. 24 July 2014. Retrieved May 7, 2015.
  45. ↑ A Holistic Approach to Healthy Food Financing, November 16, 2015, Healthy Food Access, May 17, 2016
  46. ↑ Jaffe, Ina (July 24, 2013). "Move Over Nursing Homes — There's Something Different". npr.org. NPR. Retrieved May 6, 2015.
  47. ↑ Garcia, Teresa (February 2014). "NMTCs Give Green Light to Senior Housing Alternative". Novogradac Journal of Tax Credits. Novogradac & Company LLP. V (II): 1–2.
  48. ↑ Gupta, Vasudha (June 2012). "Assessing the Village Model and the Village To Village Network in Advocating Aging in Place for Older Americans" (PDF). MIT.edu. Massachusetts Institute of Technology. Retrieved May 6, 2015.
  49. ↑ Daniels, Alex. "AARP Foundation Launches Impact-Investing Program". The Chronicle of Philanthropy. Retrieved November 2, 2015.
  50. ↑ Alyssa Muchaud (August 18, 2016). "Keystone announces new health center in rural Pennsylvania". Pennsylvania Business Daily. Retrieved October 25, 2016.
  51. ↑ Andrea Haffley (September 15, 2016). "The Mustard Seed Project purchases building and land in Key Center". The News Tribune. Retrieved October 25, 2016.
  52. ↑ O'Meara, Mark. "Round 11 NMTC Awardees Discuss Program's Future, Plans for Allocations" (PDF). Novoco.com. Novogradac & Company LLP. Archived from the original (PDF) on May 18, 2015. Retrieved May 7, 2015.
  53. ↑ Hulett, Sarah (21 May 2014). "JPMorgan Chase Announces Detroit Investment". npr.org. NPR. Retrieved 11 December 2015.
  54. ↑ Tankersly, Jim (10 July 2014). "JPMorgan is betting $100 million on Detroit. Can it leverage a lot more?". washingtonpost.com. Nash Holdings LLC. Retrieved 11 December 2015.
  55. ↑ Financing finalized for $65 million The Scott at Brush Park apartment development, Kirk Pinho, February 3, 2016, Crain's Detroit, May 17, 2016
  56. ↑ Joel Landy begins rebuild of James Scott's 'Spite House', Kirk Pinho, April 5, 2016, Crain's Detroit, May 17, 2016
  57. ↑ Pinho, Kirk (21 January 2015). "Redevelopment of 'hammer and nail' building in Midtown would create apartments, retail". crainsdetroit.com. Crain Communications, Inc. Retrieved May 7, 2015.
  58. ↑ Pinho, Kirk (11 January 2015). "Barbat builds his portfolio of downtown real estate". crainsdetroit.com. Crain Communications, Inc. Retrieved May 7, 2015.
  59. ↑ Pinho, Kirk (9 March 2015). "58 town homes proposed for East Ferry Street in $10 million development". crainsdetroit.com. Crain Communications, Inc. Retrieved May 7, 2015.
  60. ↑ Capital Impact says 'yes' to underserved Detroit communities, January 15, 2016, Princess Hayes, Michigan Chronicle, May 17, 2016
  61. ↑ Shina brothers to unveil $6.2 million expansion, Michael Lewis II, December 15, 2015, Crain's Detroit, May 17, 2016
  62. ↑ "Capital Impact Partners". Opportunity Finance Network. Retrieved November 2, 2015.
  63. ↑ R.J. King (August 19, 2016). "Elliott Building in Downtown Detroit Completes $12M Financing Package". D Business. Retrieved October 25, 2016.

External links

This article is issued from Wikipedia - version of the 11/14/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.