Morgan Stanley, Kresge Foundation and LISC Launch $100 Million Investment
Fund Linking Healthcare and Affordable Housing in Low-Income Communities
NEW YORK & TROY, Mich. -- January 14, 2013
Morgan Stanley, The Kresge Foundation and the Local Initiatives Support
Corporation (LISC) have launched a first-of-its kind $100 million investment
fund that is designed to expand access to health care and affordable housing
for low-income residents and fund critical social services that help link the
two in impoverished neighborhoods.
Called the Healthy Futures Fund, it is in part response to the Patient
Protection and Affordable Care Act, and the 20 million new health care
consumers that the legislation is likely to create.
The fund is being seeded with capital to build 500 housing units with
integrated health services and to construct eight federally qualified health
centers that will serve an estimated 75,000 people. It is designed to spur
collaboration among health care providers and housing developers who do not
often work together even when they operate in the same low-income
neighborhoods and serve the same people.
“Connections between health and housing for low-income people need to be
intentional. We can’t rely on serendipity to make this happen,” said Michael
Rubinger, President and CEO of the LISC, a pioneering nonprofit that helps
revive neighborhoods across the country.
“The collaboration among leading public policy programs, catalytic
philanthropy, and private sector investment is critical to deliver robust,
integrated solutions to improve the lives of low-income residents,” added
Audrey Choi, Managing Director and Head of Global Sustainable Finance at
Morgan Stanley. “Morgan Stanley’s investment in the Healthy Futures Fund
reflects our continued commitment to building stronger, healthier
The fund is utilizing federal Low Income Housing Tax Credits, federal New
Markets Tax Credits, grants, loans and guarantees to raise capital. Morgan
Stanley is investing $63 million in equity through the Low Income Housing and
New Markets Tax credits. The Kresge Foundation, LISC and Morgan Stanley are
providing another $37 million in loan and grant capital for the projects.
The initial investments will fund projects that are expected to create 2,200
jobs in hard-hit communities.
“We can improve health outcomes for low-income housing residents by improving
their access to care,” said Rip Rapson, President of The Kresge Foundation.
“That’s what this fund is designed to do. It demonstrates the kind of leverage
and innovation that can be brought to bear against large-scale social needs
when the resources of the public, private and philanthropic sectors are
LISC’s affiliate, New Markets Support Company (NMSC), is managing the fund as
part of its Building Sustainable Communities strategy to improve the quality
of life in struggling, low-income neighborhoods. Both The Kresge Foundation
and Morgan Stanley are long-time LISC partners, working together for many
years to revitalize impoverished areas.
The fund expects to expand in the coming months with additional New Markets
Tax Credits and lending capital from new partners. Organizations already
signed on include National Development Council, NCB Capital Impact, Capital
Link, Primary Care Development Corporation, Mercy Loan Fund and Opportunity
“This is the painful reality: low-income people generally experience higher
levels of sickness and disease and have lower life expectancies,” said LISC’s
Rubinger. “With this fund, we can help move families from deteriorating
apartments into quality, affordable homes and provide them with first-rate
health care. That can be life-changing.”
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm
providing a wide range of investment banking, securities, investment
management and wealth management services. The Firm's employees serve clients
worldwide including corporations, governments, institutions and individuals
from more than 1,200 offices in 43 countries. Since 2006, Morgan Stanley has
executed more than $5 billion in investments to strengthen underserved
communities. For further information, visit www.morganstanley.com.
About Kresge Foundation
The Kresge Foundation is a $3 billion private, national foundation that seeks
to influence the quality of life for future generations by creating access and
opportunity in underserved communities, improving the health of low-income
people, supporting artistic expression, increasing college achievement,
assisting in the revitalization of Detroit, and advancing methods for
addressing climate change. The foundation works in seven program areas: arts
and culture, community development, Detroit, education, the environment,
health, and human services. In 2011, the Board of Trustees approved 346 awards
totaling $170 million; $140 million was paid out to grantees over the course
of the year. For further information, visit kresge.org.
LISC combines corporate, government and philanthropic resources to help
nonprofit community development corporations revitalize distressed
neighborhoods. Since 1980, LISC has raised $12 billion to build or rehab
289,000 affordable homes and develop 46 million square feet of retail,
community and educational space nationwide. LISC support has leveraged nearly
$40 billion in total development activity. For further information, visit
Matt Burkhard, 212-761-2444
The Kresge Foundation
Cynthia B. Shaw, 248-643-9630
Colleen Mulcahy, 312-342-8244
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