MESSAGE FROM LISC PHOENIX
2023 WAS A PRETTY SPECIAL YEAR. So many forces came together to bring a new energy and unprecedented funding to our work. Federal ARPA dollars flowed into neighborhoods in the form of technical assistance for small businesses, infrastructure grants for child care providers and culturally appropriate food access. An adaptive re-use dream – 40 years in the making – got ready to open its doors. Local funders doubled down on investments for affordable housing development. It was a “comeback year” for our communities after the prolonged challenges of the pandemic.
Before we let you dig into those stories below, we want to shout out some work that will be shaping our year ahead:
- Our support of the Black and Indigenous solidarity work of the Politics of Place Coalition has created new space for these communities to create deeper relationships, share recommendations and move local institutions toward better support.
- Through two grant-funded teams, we’ve been tasked with ensuring community power building is part of large-scale investments in climate resiliency and biomedical manufacturing.
- After taking on the managing partner reigns of the Arizona Partnership for Healthy Communities, we relaunched the Live Well Arizona Incubator with five teams receiving coaching for their healthy communities’ projects.
There are so many exciting opportunities in 2024 following such a successful 2023. Thank you for the part you played in this impact.
2023 BY THE NUMBERS
invested
leveraged
in grants awarded
total grants distributed
businesses receiving technical assistance
units of affordable homes & apartments developed
square feet of commercial space developed
OUR IMPACT STORIES
CHILD CARE
A $60 million investment in children and the “workforce behind the workforce”
In 2023, LISC awarded nearly $60 million to 478 child care providers through the Arizona Child Care Infrastructure Grant. What started as a $26 million fund quickly grew to $60 million in May 2023 thanks to the trust of our partners, the Arizona Department of Economic Security and First Things First, and the hard work of grantees. The impacts of this program have already been transformational: 99% of grantees improved the quality of their care and grantees created 2,800 new child care slots.
Beyond the numbers, these investments made child care providers – workers who are too often overlooked – feel seen. They created more child care options for families, improved care, and boosted staff morale. Summer Palacios reworked existing space to create new classrooms that cater to children’s developmental needs, accepting 19 children off the waitlist. Esmeralda Mata-Church reimagined her playground to include activity centers and a bike track that children love. Loretta Delsaulniers doubled the size of her outdoor play area and revamped the teachers’ break area, making children and staff happy.
Rooted in equity, the program focused on child care providers in low- and moderate-income communities, areas where child care is limited, and other high-need criteria. And we partnered with local organizations with deep expertise in early childhood education to provide business coaching to grantees. Although federal funds for child care expired in September 2023, we’re showing what’s possible when you pair funding with technical assistance for the child care sector – and why we need to double down on investments in child care and early learning.
FINANCIAL STABILITY
Leveraging trust and data to strengthen financial health
The past year has shown us that we won’t fully rebound from the pandemic until we close the widening financial gap for underserved communities. Enter Financial Opportunity Centers® (FOCs): centers that help people improve their financial health by building credit, increasing savings, and using data to track their financial progress. Three organizations joined Arouet Foundation to grow our FOC network in 2023: Fresh Start Women’s Foundation, Live & Learn, and RAIL CDC. While these organizations have distinct missions, they all share the trust of the people they serve.
Whether supporting women returning to their communities after time in prison or strengthening small businesses along the Tempe-Mesa light-rail corridor, these organizations are tailoring the FOC model to provide financial coaching that best meets the needs of their clients. FOCs complement these organizations’ existing services, allowing them to grow their capacity as they leverage LISC’s data tools, program support, and nationwide network of more than 130 members.
While these organizations have distinct missions, they all share the trust of the people they serve.”
LENDING
Persistence brings place-based investments to life
For 40 years, the First Baptist Church in downtown Phoenix has sat as an empty – but beautiful – ruin after a devastating fire. Since 1993, the Housing Opportunity Center has worked tirelessly to revitalize the space, now known as the Monroe Street Abbey. After creating affordable housing in the church’s former parking lot, the Housing Opportunity Center sought financing to redevelop the old church into a “third place,” or space outside of home or work for community members and nonprofits to gather.
After stalled attempts, including one in March 2020, a $6.6 million loan finally closed in October 2023 – helping the Monroe Street Abbey project stage a comeback. A collaboration between LISC, Arizona Community Foundation, and Phoenix Industrial Development Agency, this financing demonstrates the unique role LISC plays in partnering with community-based organizations to kickstart projects. The Monroe Street Abbey project demonstrates the power of persistence in creating purposeful developments that build on a neighborhood’s existing strengths.
ECONOMIC DEVELOPMENT
Encouraging the entrepreneurial spirit through community partnerships
In every neighborhood, people have a favorite restaurant, hair salon, or shop that anchors them – a place that promotes a sense of community identity. And yet managing a small business is tough, especially in the communities hit hardest by the pandemic. Through the Community Navigator Pilot Program (CNPP), we partnered with four organizations with strong community ties to support entrepreneurs: the Arizona Asian Chamber of Commerce, RAIL CDC, Southwest Human Development, and Trellis.
These organizations received $435,000 in CNPP funding to help low-income and marginalized groups address major hurdles in developing their businesses, from accessing capital to finding accounting software. For Pete Chavez, Hector Treto at RAIL CDC helped him outline his expansion goals for Chavez Boxing Gym.
After supporting more than 365 small businesses with 2,289 hours of business coaching, CNPP wound down after two years in 2023. While the program has concluded, LISC and our partners are committed to developing Phoenix’s underserved small business owners.
$435,000
in CNNP Funding
365+
small businesses supported
2,289 hours of business coaching
AFFORDABLE HOUSING
Innovative housing fund celebrates 15 years of spurring development
In 2007 the Arizona Community Foundation (ACF) recognized a concern that many wouldn’t see for years: there was a growing social crisis where housing options – both owned and leased – had become far too few for those with lower and moderate incomes. With a goal to bring more nonprofit developers into the sector, ACF teamed up with LISC Phoenix on a new fund that, unlike traditional charitable funds, provided zero-interest loans with no fees to nonprofit housing developers for pre-development expenses related to affordable housing projects, for which financing is not typically available. Once the project receives long-term financing, loans are repaid to the Fund – making those dollars available for new projects.
In the 15 years since the fund launched, the pot has grown to $2 million that has been lent to 72 projects that will result in 3,824 new housing units with a whopping 126:1 leverage. The fund has remained flexible over the years, funding the rehab of foreclosed properties during the housing crisis, development of new supportive housing, and being tapped for rural developments around the state and transit-oriented communities in metro-Phoenix and Tucson.
In 2023 we built on the success of the pre-development fund by starting the Metropolitan Phoenix Affordable Housing Collaborative and announcing a $5 million affordable housing pre-construction loan fund from PNC Community Development Banking. Along with the Home Matters Arizona Fund and the Arizona Housing Fund, we’re creating a continuum of funding for affordable housing projects.
OUR FUNDERS
2023 Private Sector Support
Alliance Bank of Arizona
American Express
Arizona Cardinals
Arizona Community Foundation
AZCH - CCP
Bank of America
Bank of America Charitable Foundation
Banner Health
Banner University Health Plan
Blue Cross Blue Shield of Arizona Health Choice
Ross Bergstedt
BMO Harris Bank
Capital One
Care1st Health Plan of Arizona, Inc.
CIT Bank, N.A.
Dignity Health
Downtown Phoenix Partnership
Dunlap & Magee Property Management
Maria T. & Craig P. Echeveste
Enterprise Bank
Federal Home Loan Banks
FineMark National Bank & Trust
First Bank Holding Company
Foothills Bank
Friends of Transit
Gorman & Company, Inc.
Harkins
Health Choice
Joseph M. Horiye
Horizon Community Bank
JPMorgan Chase
Lincoln Financial Foundation
Medieval Maidens MC Arizona
Mercy Care
Mid First Bank
Molina Complete Care of Arizona
The NARBHA Institute
National Bank of Arizona
Northern Trust
PNC Bank
Santander Consumer USA Inc. Foundation
State Farm
Sunbelt Holdings
Tradition Capital Bank
TrustBank
United Healthcare Services, Inc.
U.S. Bank
U.S. Bank Foundation
Valley Metro
Vitalyst Health Foundation
Wells Fargo
WESCAP Investments, Inc
Thank you to all the partners who make this work possible.”
2023 Public Sector Support
Arizona Department of Economic Security
Arizona Department of Housing
First Things First
City of Mesa
City of Phoenix
City of Tempe
U.S. Department of Housing and Urban Development
U.S. Small Business Administration
OUR 2023 LOCAL ADVISORY COUNCIL
Lisa Price, Chair of the LAC Wells Fargo
Marcos Garay, Vice Chair of the LAC National Bank of Arizona
Teniqua Broughton State of Black Arizona
Saré Burke JPMorgan Chase
Katie Campana Wells Fargo
Angela Chavira TrustBank
David Crummey PNC Bank
David Dunlevy FineMark National Bank & Trust
Jennifer Fletcher MidFirst Bank
Jon Ford Federal Reserve Bank of San Francisco
Augie Gastelum Patchwork Community Inclusion
Reine Hamilton Bell Bank
Imad Hatoum First Bank
Adam Herrera Bank of America
Thomas Hosier Stearns Bank
Samantha Keating City of Phoenix
David Light Arkos Health
Luis Marquez BMO Harris Bank
Jeff McVay City of Mesa, Managers office
Mitchel Moore ACCEL
Jill Morrissey FineMark National Bank & Trust
Garrett Murdock U.S. Bank
Nicole Newhouse Arizona Housing Coalition
Melinda Nypen JPMorgan Chase
Michael Payne State Farm
Arturo Pérez U.S. Bank
Ramiro Pompa BOK Financial
Horace Raymond Arizona Cardinals
Craig Robinson Western Alliance Bank
Adrian Ruiz Valley Metro
Alex Shaffer Arizona Financial Credit Union
Nick Shepherd Banterra Bank
Mark Stapp Arizona State University, WP Carey School of Business
Branislav Vujic UMB Bank
Michael "Steve" Warrick New York Community Bank, A Division of Flagstar Bank, N.A.
David Weinglass APS
Diana Yazzie Devine Community Member, Mesa
Meg Zemlicka City of Tempe
Learn more at lisc.org/phoenix