Policy: Choosing Performance

In May 2010, IFF released Choosing Performance: An Analysis of School Location and Performance in Milwaukee, a new study that analyzes the performance, location, and enrollment of Milwaukee Public Schools (MPS), charter schools and certain private schools participating in the Milwaukee Parental Choice Program (MPCP) in 2008-2009. 

The report identifies the top eight zip code areas in Milwaukee with the greatest number of school-age children but the fewest number of schools that meet state standards for academic performance.  Ultimately, we find that most children do not attend or live near a school that meets the Wisconsin State Standard.

The Milwaukee Journal Sentinel featured the report in a front page article, “Good schools in Milwaukee are scarce, study finds.”  You can access the full report and other resources at Milwaukee: Choosing Performance.

Investors and Funders: JPMorgan Chase

JPMorgan Chase has provided IFF with a low-interest loan of $9.5 million with capital raised through the New Markets Tax Credit (NMTC) Program. The funding comes at a critical time for nonprofits which have seen other facilities financing options decline during the U.S. economic crisis. IFF will use the JPMorgan Chase investment to provide loans to qualified nonprofit borrowers in Indiana, Wisconsin, and Illinois.

Specifically, IFF will target loans for the acquisition, renovation or construction of facilities within NMTC-qualified census tracts. The funds are particularly important because they will allow IFF to provide affordable, flexible financing for projects in very low-income areas which are typically too small to take advantage of NMTC investments.  Potential projects to be financed include charter schools, health care facilities and child care centers.

Illinois: Namaste Charter School

Namaste Charter School (Namaste) is a bilingual, health focused charter school serving the McKinley Park and Back of the Yards neighborhoods on the southwest side of Chicago. The school, which leases and occupies a former school building from the Chicago Archdiocese, was approved for a K-8 program but could not expand beyond K-5 enrollment due to facility constraints.

In 2009, IFF enabled Namaste to secure $7.5 million to construct the necessary addition to its leased property.  IFF loaned Namaste $2.5 million, and in addition provided 10 percent credit enhancement to MB Financial. The credit enhancement enabled MB Financial to make a $4 million loan to Namaste, backed by privately-placed tax-exempt bonds, despite the limited collateral provided by a leasehold improvement project.

The financing allowed the school to add 13,200 square feet, bringing the total for the site to 45,000 square feet.  The addition and renovation of the existing building include six classrooms, a library, an additional physical education space, administrative offices and special education spaces. Consistently one of the highest performing charter elementary schools in Chicago, Namaste will now be able to increase its capacity from 310 students to 450 students, and serve grades K-8. A ribbon cutting celebration is scheduled for July 9, 2010.

Wisconsin: Community Advocates, Inc.

Community Advocates (CA) provides Milwaukee’s most vulnerable populations with many services, including case management and housing for homeless and mentally ill adults.  In recent years, the agency has grown exponentially–from 82 to over 170 employees—due to mergers that have broadened CA’s program and made it more efficient. 

CA found a larger, more suitable space at 728 North James Lovell.   While Town Bank committed to purchase $2.63 million in bank qualified bonds, the project hit a wall when Town reached its loan-to-value maximum. At that point IFF’s $1 million loan became critical to filling in the gap and completing the transaction.  A partnership between CA, Town Bank, and IFF led to the acquisition and build-out of a new CA headquarters that will open in 2011. 

According to Joe Volk, Executive Director, “everyone knows that this is a very difficult lending environment especially for nonprofits taking on large capital projects. This project could not have gone forward without IFF's unique understanding of how nonprofits are financed and how we pursue our mission.”

Missouri: Riverview West Florissant

In North St. Louis, Riverview West Florissant Development Corporation (RWFDC) revitalizes neighborhoods with housing, economic development, community engagement activities, beautification, and home repairs.  RWFDC had been working closely with North St. Louis communities for more than 15 years, but had never built its own property assets. 

In 2008, IFF provided first-mortgage financing to allow RWFDC to purchase and renovate a building to serve as its headquarters. Recently, IFF approved a second loan that will allow RWFDC to redevelop a donated property into two three-bedroom townhomes which will then be rented to low and moderate income families.

The demand for three-bedroom rental units in the area is high, in fact all current units are occupied and there is a standing waiting list of more than 10 families on three projects controlled by RWFDC.  IFF’s $55,000 loan will be combined with $7,500 in agency funds and $294,646 from the City of St. Louis, and will help RWFDC to fill a gap in community housing.

Policy: Early Childhood Care Initiative

IFF thanks Illinois State Senator Don Harmon and State Representative Elizabeth Hernandez for their leadership in passing S.B. 3460, which will make it easier to build and expand early childhood facilities in high-need communities around the state.  The bill reduces the match requirement, from 50 percent to 10 percent, for nonprofit child care providers to access $45 million in early childhood construction grants.  As a result of the leadership and advocacy of The Early Learning Council, Ounce of Prevention, Voices for Illinois Children, The Latino Policy Forum and IFF, underserved communities in Illinois will gain access to affordable early childhood programs.

Technical Assistance: Can I Green My Existing Building?

IFF continues its series of technical assistance worksheets and audio broadcasts exploring what green design means for nonprofits. This month, David Reynolds, Vice President of Real Estate Services, continues with Part Two of last month’s audiocast “Can I Green My Existing Building?”  Full transcripts are also available alongside our audiocasts. If you have questions about green design or Real Estate Consulting Services, please contact David Reynolds at 312 596 5102 or dreynolds@iff.org.