PHOENIX, Feb. 15, 2023 – PNC Bank and Local Initiatives Support Corporation (LISC) Phoenix today announced the creation of a $5 million affordable housing pre-construction loan fund.
This Equity Equivalent, or EQ2, investment is provided by PNC Community Development Banking. It will enable LISC Phoenix to provide low-cost debt to be used for short-term loans to nonprofit developers, emerging Minority- and Women-owned Enterprises (MWBEs), veteran-owned enterprises, and small affordable housing developers. The investment will help close the gap for the time between announcement of Low-Income Housing Tax Credit (LIHTC) awards and close of construction finance.
“PNC’s support fills a missing layer of funding for nonprofit developers,” said Terry Benelli, LISC Phoenix executive director. “It builds on the success of our Affordable Housing Pre-Development Fund from Arizona Community Foundation and the Home Matters Arizona Fund. The investment creates a continuum of funding for LIHTC developers constructing critically needed healthy housing units.”
This CRA-qualified investment in LISC helps facilitate timely delivery on LIHTC projects in Arizona. LISC will underwrite, close and service the low-interest loans with terms of five to seven years. As loan funds are repaid by the borrower, they can be revolved annually to support new LIHTC project awards in Arizona.
“As a national main street bank, PNC is embedded in the communities where we operate and committed to helping all move forward financially,” said Paul Bunyard, PNC’s Community Development Banking market manager. “Affordable housing is a tremendous need across the country. We are pleased to support the important work of LISC Phoenix to maximize opportunities for all individuals in Arizona.”
Interested borrowers can contact LISC Phoenix, infophx@lisc.org, to learn more about this and other funding opportunities.
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About PNC Bank
PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
About LISC Phoenix
LISC is one the country’s largest community development organizations, helping forge vibrant, resilient communities across America. LISC Phoenix was formed in 1992 and since its inception has collaborated with place-based organizations and our corporate, foundation and public partners to create an innovative approach to working with neighborhoods that face systemic challenges. For more, visit www.lisc.org/phoenix.