Spotlight: Bank of America

3.01.2017 — LISC StoriesFunder in the Spotlight

Rural LISC is grateful and excited to be starting off 2017 with Bank of America’s new commitment to LISC – $3.8 million over the next three years. This generous grant will strengthen Rural LISC’s efforts to spur physical development, build family income and wealth, and stimulate economic development in rural communities across the country, from the Northeast, to the South, to desert communities across the Southwest, and up to the Northwest.

Rural LISC’s footprint overlaps Bank of America’s market area in 31 states, where 56 Rural LISC partner organizations are working on the ground to revive businesses, build affordable housing, and create jobs in their communities – places desperately needing them.

Thanks to this grant, our partners will accelerate along the “Road to Capacity,” a new Rural LISC initiative for community-based organizations working in high and persistent poverty areas. The Road to Capacity enables us to measure an organization’s current capabilities in order to identify areas where capacity can be expanded and increased.

In addition to this grant, Bank of America is also a guarantor for the Community Facilities Fund – another integral source of funding for the Road to Capacity initiative – which will support the development of community facilities such as hospitals, schools and child care centers.

Bank of America’s grant will support Rural LISC partner organization projects like these:

On San Juan Island, Washington, OPAL (“Of People And Land”) Community Land Trust is building the first phase of a new development of 30 rental town homes, seven buildings for low- to moderate-income households and for a range of household sizes and ages, from fully accessible units for people with disabilities or seniors, to three-bedroom units for families with children, plus securing land for a second phase of 15 homes.

Architectural rendering of a 30 unit rural infill development on San Juan Island, Washington.

OPAL has integrated numerous green building strategies in the design of this rural-infill project. The site is within walking distance of all major commercial and public facilities, including the public school, two private schools and the teen center, a grocery store, pharmacy, hardware store and theater.

Across the country in Pennsylvania, Fayette County Community Action Agency (FCCAA), our partner in Uniontown, a former coal mining town in rural southwestern Pennsylvania, is operating a Financial Opportunity Center (FOC), one of 80 such centers being developed by LISC nationwide. FOCs offer low- to moderate-income people resources to help in finding higher-paying jobs, increasing savings, developing better credit scores, and developing skill with money management.

Rural LISC, LISC and FCCAA staff participate in the FOC Training in Uniontown.

In Piscataquis County, Maine, Rural LISC worked with partner Coastal Enterprises, Inc. (CEI), to redevelop an historic, former industrial site in downtown Dover-Foxcroft. The Mayo Woolen Mill complex, comprising nine buildings overlooking the Piscataquis River, had stood vacant for years. It is listed on the National Register of Historic Places, and includes buildings ranging in date from 1844 to 1941, with one existing structure in use as far back as 1865.

Now, it has been transformed into a mixed-use facility encompassing retail shops and offices, a high-tech business center, 22 market-rate apartments, artist studios, and an Internet café and data center to support the expansion of high speed fiber into rural Maine. Future plans for the site include a restaurant, a boutique hotel and a year-round indoor farmers market.

Additionally, the project involves upgrading an existing hydroelectric plant on the Piscataquis River to add renewable solar and geothermal power systems that will provide energy for the development, helping to keep rents affordable and utilities costs low.

Mayo Mills: a transformational project for the community, and a demonstration of the principles of rural community development and economic impact.

Bank of America has been a major contributor to Rural LISC’s community development work since its inception in 1995. Rural LISC’s operations are overseen by a 20-member Advisory Committee, chaired by Stephen B. Fitzgerald, Program Director of the Bank of America Charitable Foundation.

During the last five years, Bank of America has committed close to $1.2 million in multi-year grant funds to Rural LISC. This support has been vital to Rural LISC’s Building Sustainable Communities program among the partner organizations it supports. Each of these partners has developed strategies around the program’s five goals: 1) Expanding Investment in Housing and Other Real Estate; 2) Increasing Family Income and Wealth; 3) Stimulating Economic Development; 4) Improving Access to Quality Education; and 5) Supporting Healthy Environments and Lifestyles.

“Rural LISC continues to provide critical resources to its partners across the country...strengthening the vitality of communities across rural America.”

— Stephen B. Fitzgerald, Bank of America Charitable Foundation

Rural LISC matches and leverages Bank of America funds to provide continuing financial and technical assistance to its partner organizations. During the last five years alone, Rural LISC raised $3.5 million in private funds and another $14 million in public grant funds. With the help of Bank of America funds, Rural LISC is able to provide its partners with:

Grants, recoverable grants, below market rate loans and guarantees, plus access to equity generated by federal Low Income Housing and New Markets Tax Credits.
Technical assistance and training delivered by staff, consultants and partner organization peers.
An annual multi-day educational Seminar where partners attend training sessions, network and develop mentoring relationships with peers, and view partner organization work in the field.
A website with up-to-date information about the program and partner organizations being served, and links to other sources of information relevant to rural community developers.
Rural e-News, a monthly newsletter emailed to partners and a network of more than 1,700 rural community developers across all 50 states.

“With Bank of America's support, we are ensuring our community-based partners in rural areas across the country have access to needed resources.”

— Suzanne Anarde, VP of Rural LISC

Cumulative Results:

Since its inception in 1995, using Bank of America grants, loans and matching funds, Rural LISC has committed $19 million in capacity building grants and $7 million in predevelopment and recoverable grants, plus $115 million in low cost loans and guarantees and $710 million in equity and bridge financing to partner organizations serving in Bank of America market areas. With this support, these partners have secured $1.9 billion in matching funds and development financing and developed, or are developing, 21,213 affordable homes and 1.18 square feet of commercial, industrial and community facilities. They have also assisted 251 small and micro businesses, generating 2,796 jobs.