Economic Stimulus

News & Events > Nation-wide call to include community development in economic stimulus plan

January 29, 2009 - As the U.S. Congress continues debating provisions in the economic stimulus package, a growing network of community development financial institutions is advocating that a portion of that aid be directed to affordable housing, business and microenterprise development in low-income communities.

The Leviticus Fund is one of more than 160 non-profit financial institutions (CDFIs) nationwide that is making its case before Washington’s leadership. This national network stands on the front-line with other nonprofit organizations to address a full spectrum of social needs in low-income communities that are only further strained by the current economic crisis. The surge in foreclosures is increasing the number of households needing access to affordable housing. Small businesses that would typically qualify for bank financing no longer have access to that capital, while displaced workers want seed money for start-up businesses.

“It really is the ‘perfect storm’, but a very painful one for those individuals and families that are facing the stress of a lost home or job,” explained David Raynor, Leviticus’ Executive Director. “CDFIs like Leviticus are stretching themselves to respond to the needs, but finding it difficult because those same community needs far exceed our available lending resources.”

One potentially hopeful sign for CDFIs is contained in the Senate version of the economic recovery plan that is scheduled for a vote early next week.

That legislation includes a provision for “protecting the vulnerable” and allocates $250 million to CDFIs to invest in development projects in underserved communities. If approved, these funds would be disbursed through the CDFI Fund, a federal program within the U.S. Treasury that promotes economic revitalization and community development efforts by CDFIs nationwide.

“We are fully leveraged and fully deployed of our available loan capital,” added Mr. Raynor. “For the first time in our 25-year history we have turned away over $5 million in loan requests in the last three months simply due to a lack of resources. If Leviticus receives an allocation from these stimulus funds we can effectively use these resources to support the affordable housing and community facility and child care programs of greatest need in our area.”

In 2008, Leviticus approved over $5.4 million in loans to low-income communities in New York, New Jersey and Connecticut. As testament to the current economic crisis, all but three of last year’s 16 approved loans focused on some aspect of housing related needs whether for rental or homeownership, housing with supportive services, or preservation of homes for low-income families in manufactured home parks.

Already in 2009, Leviticus has approved $600,000 in financing to 174 homeowners to collectively purchase their manufactured home park in Connecticut and is currently reviewing a $500,000 loan request for a 5-unit supportive housing rental project in New Jersey for the disabled and homeless. In addition, Leviticus has received other loan inquiries for almost $5.2 million for both affordable housing and community facility projects.

Leviticus is capitalized at over $14.5 million and has provided over $27 million in cumulative lending since its founding in 1983. Together with its non-profit borrowers, Leviticus has helped generate: 1,763 affordable housing units, including emergency shelters and supportive residences; 36 child care centers serving 3,158 children; 33 community facilities offering social services; 8 health care facilities; 161 new jobs; and 10 new small businesses.


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About Us Who We Help Ways to Invest Ways to Borrow Make a Gift News & Events Advocacy	News & Events > Nation-wide call to include community development in economic stimulus plan January 29, 2009 - As the U.S. Congress continues debating provisions in the economic stimulus package, a growing network of community development financial institutions is advocating that a portion of that aid be directed to affordable housing, business and microenterprise development in low-income communities. The Leviticus Fund is one of more than 160 non-profit financial institutions (CDFIs) nationwide that is making its case before Washington’s leadership. This national network stands on the front-line with other nonprofit organizations to address a full spectrum of social needs in low-income communities that are only further strained by the current economic crisis. The surge in foreclosures is increasing the number of households needing access to affordable housing. Small businesses that would typically qualify for bank financing no longer have access to that capital, while displaced workers want seed money for start-up businesses. “It really is the ‘perfect storm’, but a very painful one for those individuals and families that are facing the stress of a lost home or job,” explained David Raynor, Leviticus’ Executive Director. “CDFIs like Leviticus are stretching themselves to respond to the needs, but finding it difficult because those same community needs far exceed our available lending resources.” One potentially hopeful sign for CDFIs is contained in the Senate version of the economic recovery plan that is scheduled for a vote early next week. That legislation includes a provision for “protecting the vulnerable” and allocates $250 million to CDFIs to invest in development projects in underserved communities. If approved, these funds would be disbursed through the CDFI Fund, a federal program within the U.S. Treasury that promotes economic revitalization and community development efforts by CDFIs nationwide. “We are fully leveraged and fully deployed of our available loan capital,” added Mr. Raynor. “For the first time in our 25-year history we have turned away over $5 million in loan requests in the last three months simply due to a lack of resources. If Leviticus receives an allocation from these stimulus funds we can effectively use these resources to support the affordable housing and community facility and child care programs of greatest need in our area.” In 2008, Leviticus approved over $5.4 million in loans to low-income communities in New York, New Jersey and Connecticut. As testament to the current economic crisis, all but three of last year’s 16 approved loans focused on some aspect of housing related needs whether for rental or homeownership, housing with supportive services, or preservation of homes for low-income families in manufactured home parks. Already in 2009, Leviticus has approved $600,000 in financing to 174 homeowners to collectively purchase their manufactured home park in Connecticut and is currently reviewing a $500,000 loan request for a 5-unit supportive housing rental project in New Jersey for the disabled and homeless. In addition, Leviticus has received other loan inquiries for almost $5.2 million for both affordable housing and community facility projects. Leviticus is capitalized at over $14.5 million and has provided over $27 million in cumulative lending since its founding in 1983. Together with its non-profit borrowers, Leviticus has helped generate: 1,763 affordable housing units, including emergency shelters and supportive residences; 36 child care centers serving 3,158 children; 33 community facilities offering social services; 8 health care facilities; 161 new jobs; and 10 new small businesses.