A Visit from Donna Gambrell, CDFI Fund Director

On July 28 Donna Gambrell, Director of the U.S. Department of the Treasury’s Community Development Financial Institution Fund (CDFI Fund) visited IFF’s Missouri office to learn more about IFF’s work in metropolitan St. Louis. The site visit included tours of seven facilities on which IFF has lent including UA Plumbers and Pipefitters Local ##101 in Belleville; New Life in Christ Interdenominational Church in Lebanon; Vincent Gray Academy in East St. Louis; and Justine Petersen, Annie Malone Children and Family Services, Saint Louis ConnectCare, and Paraquad in St. Louis. It also included the Lessie Bates Davis Neighborhood House which IFF developed. IFF President and CEO Trinita Logue and board member Carl Jenkins spoke to Director Gambrell about the capital needs of nonprofits in the region. After the tour, the Federal Reserve Bank of St. Louis hosted a dinner for Director Gambrell with local community development leaders to discuss the local lending and operating environment and learn more about the strategic direction of the CDFI fund.

IFF thanks everyone who contributed to the success of Director Gambrell’s trip. Since its inception, the CDFI Fund has provided $10 million in capital to IFF, and the tour demonstrated to the Fund how IFF and its nonprofit partners have put this capital to work to benefit low-income and special needs populations.

IFF and NACSA Release Study on St. Louis Public Schools

In September, the National Association of Charter School Authorizers (NACSA) and IFF released a new study analyzing the performance, location, and enrollment of both St. Louis Public Schools and charter schools in 2007-08. The study, Place, Performance, and Promise, determined that St. Louis students currently have limited access to a quality school in their neighborhood. Read the St. Louis Post Dispatch article and editorial about the study or download the full report

IFF Awarded Grant through NSP

This September, IFF received a $5.13 million grant from the Illinois Department of Human Services to help Illinois nonprofit corporations acquire and redevelop foreclosed properties for low-and-moderate-income individuals. The grant is part of the $53 million allocated to the state of Illinois through the federal Neighborhood Stabilization Program (NSP). IFF received the state’s largest single allocation in a highly competitive review process.

IFF will use the new funds to lead a collaboration among 15 nonprofit partner social service agencies. Together, they will acquire and redevelop housing units for special needs populations, including the formerly homeless and individuals with physical and developmental disabilities. IFF will manage all financing, acquisition, design and construction, while the partner agencies will own the units and direct the provision of social services and property management.

Booth House: A New Home for Developmentally Disabled Young Adults

In April, IFF extended a $176,000 loan to the Volunteers of America of Wisconsin (VOAWI) to acquire and rehabilitate a single-family home. Refurnished in August, the 1,329 square-foot home in Waukesha will function as a community-based residential facility (CBRF) for four adults with developmental disabilities. What distinguishes Booth House from other such facilities is its clientele—young adults between the ages of 18 and 35.

Since a large portion of the adults in CBRFs are elderly, younger occupants sometimes feel that they have little in common with the residents. The Booth House caters specifically to the needs of its younger clientele. Young adults move to CBRFs from their parents’ homes or from youth facilities. Upon state licensing, the Booth House will help both clients and families transition into new living arrangements. Six people have been identified to live in the four-bedroom home.

To help fund the acquisition and rehabilitation of the new house, the VOAWI approached IFF directly. According to Anne Foerster, the nonprofit’s director of operations, VOAWI knew that it was nearly impossible for nonprofits to get loans from banks in the current economic climate. Working with IFF is easier because they unders tand nonprofits, said Foerster. To be good stewards of our money, we wanted to find the most affordable and flexible loan termsthat’s why we used IFF.

Muchin College Prep: A Charter School in Downtown Chicago

Muchin College Prep, the ninth campus of the Noble Network of Charter Schools and the fifth developed entirely by IFF’s Real Estate Services department, opened for its first day of school on August 24. IFF managed the school’s site selection, lease, design, and construction and also extended a $1 million loan towards the $10.3 million project.

Muchin College Prep is downtown Chicago’s first non-selective college prep high school. The charter school offers a rigorous, values-based free public education to students drawn from all Chicago neighborhoods, most from low or moderate income families.

To construct the 600-student facility, IFF worked closely with many groups. The Northern Trust provided a $3.9 million loan and Allan B. Muchin, Chairman Emeritus of Katten Muchin Rosenman LLP, contributed a major gift. The school’s architect was Wheeler Kearns and the contractor was Bulley & Andrews. The Noble Network of Charter Schools has historically been able to place 85% of its graduating senior classes in higher education settings. Located at State and Madison in the 1 North State Street building, the new charter school will give under-served students a new choice for secondary education.

Power House High: From Power Plant to Charter School

The Charles H. Shaw Technology and Learning Center (STLC), home of the Henry Ford Learning Institute’s Power House High (PHH), held its grand opening on August 29 in North Lawndale. The STLC is an extraordinary project which involved the adaptive reuse of a decommissioned and obsolete power plant into a state of the art high school which incorporates historic and green elements. IFF’s Real Estate Services department was involved in the project from its inception. IFF managed all aspects of preliminary planning and financing, helped evaluate potential partners, assessed the feasibility of proposed operating models, structured the preliminary financing structure, selected the architect and general contractor, and provided general project oversight. IFF partnered with Cotter Consulting for the construction management component of the project.

PHH has a remarkable background. It used to serve as the main power generator for the Sears, Roebuck and Co. complex, built in 1905. In mid-2005, the Homan Arthington Foundation, founded by Chicago developer Charlie Shaw and other civic leaders, approached IFF to discuss rehabilitating the facility to serve the North Lawndale community. Partnering with the Henry Ford Learning Institute, the Homan Arthington Foundation raised over $40 million to transform the power plant into the Charles H. Shaw Technology and Learning Center, which would house Power House High (PHH).

PHH held its first day of school in September. The 240-student charter school offers a rigorous curriculum modeled on the Henry Ford Academy in Dearborn, Michigan. While upholding the values of the Henry Ford Learning Institute, PHH will have strong connections with the local community and will contribute deeply to the North Lawndale community.

New Grant Subsidizes Facility Planning and Project Management Services

Is your organization considering a facility project? You may want to own your own space, expand or renovate existing space, or relocate to a more suitable facility. IFF's Real Estate Services division provides a range of services to help nonprofits evaluate, plan for and manage facility projects. Thanks to a grant from the Polk Bros. Foundation, fees for certain IFF services have been reduced to help you benefit from professional real estate expertise at a more affordable cost than IFF's standard below-market rates. Contact Robin Toewe at (312) 596-5141 or at RToewe@iff.org to discuss your project and learn more about IFF real estate services available through this program.

Support the Child Care Facilities Financing Act of 2009

IFF thanks Representatives Jan Schakowsky (IL-9), Luis Gutierrez (IL-4) and Jesse Jackson, Jr. (IL-2) for cosponsoring the Child Care Facilities Financing Act of 2009, H.R. 1685 and S. 1002. This legislation authorizes the U.S. Department of Health and Human Services to award competitive grants to nonprofits like IFF that finance and build child care facilities serving low-income and working families. If you are a nonprofit child care provider, consider asking your representatives in Congress to support this legislation. For more information, please visit www.iff.org

Technical Assistance: What to Look for in Negotiating a Lease

Visit our website to hear IFF's new podcast, What to Look for in Negotiating a Lease. Rich Wallach, a Senior Project Manager in IFF's Real Estate Services, gives advice on key points to remember during negotiations. For more information, check out IFF's article on leasing versus buying in the Nonprofit Quarterly or our technical assistance worksheets