In the Spotlight
Greater Kansas City LISC Announces Banner Year of Lending

KANSAS CITY, MO (January 18, 2007) — Greater Kansas City LISC had one of its most productive years of underwriting in 2006 approving six loans totaling $3,282,500, an increase of 61.6 percent over 2005 loan activity. In 2005, five loans totaling $2,031,000 were completed.

Most notable is that the types of loans and borrowers represented more diverse organizations with broader missions in 2006 than in past years. Previously, the typical borrower for Greater Kansas City LISC has been a nonprofit community development corporation (CDC) involved in housing production. However, lending in 2006 included a broader range of community projects, such as charter school development, homeless shelter services and energy conservation/green development. 

“As a financial intermediary, Greater Kansas City LISC is dedicated to striking the right balance between taking risks consistent with the role of a charitable lender, and recovering capital to ensure funds are available to future projects,” said Julie Porter, Greater Kansas City LISC Executive Director.

The increase was attributed to a renewed emphasis on lending and the hiring of a full-time staff member with extensive experience in banking and finance. The more varied loan activity reflects Greater Kansas City LISC’s comprehensive approach to neighborhood revitalization. While housing development remains a cornerstone of lending, Greater Kansas City LISC recognizes that other projects are also critical to stabilizing neighborhoods.

Since 2000, Greater Kansas City LISC has committed more than $15 million for community projects in Kansas City, Missouri and Kansas.  That amount may seem modest, but according to John Wood, Senior Program Officer for lending and underwriting, its lending was typically in a junior collateral position behind traditional financial institution lending or funded pre- development activities, with loan-to-values that at times exceeded 100 percent.

“Greater Kansas City LISC has a track record of putting together financial packages that meet the lenders’ needs as well as make a significant impact in the community,” said Wood. “Our efforts have built investor confidence and helped redefine Kansas City’s urban landscape.”

The 2006 approved loans were:

• $1,770,000 for reStart, Inc. to provide construction financing for renovations to their homeless shelter in downtown Kansas City including 18 new individualized family living units with private bath and two bedrooms; a youth counseling room; separate emergency overnight dorm space for young girls and young men; sprinkler and new HVAC systems;  new security system; and staff administrative space.

• $1,000,000 for Blue Hills Community Services Corp. to begin predevelopment activity and to acquire and assemble land to build a 48-unit town home and duplex project in the 5000 block of Wabash and Prospect Avenues for the Wabash Village initiative. 

• $170,500 for second mortgage construction financing to assist Neighborhood Housing Services to construct three new infill homes along the 3300 block of The Paseo and to rehab two other existing homes. 

• $137,000 construction renovation loan for Metropolitan Energy Center, Inc. (MEC) represents a “first” for LISC -- lending for energy conservation and green development. The loan enables MEC to rehabilitate a home with “green” features that will help house nearby university students.

• $120,000 for Guadalupe Centers, Inc. represents another “first” for LISC -- funding to renovate an old former school/office building in the Westside community into a 9-12 grade charter school extension of Guadalupe’s existing charter school program called Alta Vista Charter High School. 

• An $85,000 line of credit for Kansas City Neighborhood Alliance to assist with operational needs.

LISC is the largest community development organization in the country, serving inner cities and distressed rural areas in 36 states. Greater Kansas City LISC supports redevelopment in more than 100 square miles of Kansas City metro area neighborhoods.  By providing capital, technical expertise, training and information, Greater Kansas City LISC helps transform targeted neighborhoods into healthy, sustainable communities in partnership with their residents. Since 1990, Greater Kansas City LISC has invested more than $89 million into urban core neighborhoods on both sides of the state line resulting in 5,593 new and rehabbed homes and apartments; the development of 1.4 million square feet of retail and commercial space; and over  317,000 square feet of community facilities and sports fields.