You will restore the age-old foundations, and be called repairer of the breach, restorer of the streets in which to dwell. Isaiah 58:12 2012 Annual Investor Report
Mission The Isaiah Fund is a permanent national faith-based major disaster response pooled loan fund. It was founded in May 2008 as the result of a collaborative initiative by the American Baptist Home Mission Societies, CHRISTUS Health, Highland Good Steward Management, Bend the Arc: A Jewish Partnership for Justice, and Everence Community Investments. It began as a result of a trip in March 2006 by the Katrina Subcommittee of the Interfaith Center on Corporate Responsibility s (ICCR) Access to Capital Committee. Bend the Arc hosts and manages the Isaiah Fund, which draws on 18 years of community investment expertise through its Tzedec Community Investment Program. Isaiah partners, including the American Baptist Home Mission Societies, CHRISTUS Health, Everence Community Investments, and others, also bring extensive community investment experience. The Isaiah Fund uniquely fills a significant need for equitable capital for affordable housing, small business development, and community facility development.
Dear Investors, On behalf of the Board of Managers, thank you for your commitment to the Isaiah Fund. I am proud to share our accomplishments from the past year, made possible with your investments. The past year was one of growth, expansion, and collaboration. As you will see from the stories highlighted in these pages, we have invested in projects that are making a real difference in low-income communities directly affected by Hurricanes Katrina and Rita, which continue to rebuild today. To maximize the visibility and impact of its loans, the Isaiah Fund continues to focus its investments on three key neighborhoods in New Orleans: Central City, Tremé, and the Broad Street Commercial Corridor. All three neighborhoods hold important historical and cultural significance in New Orleans. In 2012, thanks to your investment, the Isaiah Fund invested in a community health clinic that will serve five low-income communities with a population of nearly 30,000, where 58 percent of the population is uninsured or underinsured. To do this, the Isaiah Fund s $300,000 loan leveraged another $300,000 loan from Partners for the Common Good, a national community lender committed to advancing economic justice and opportunity for low-income people and neighborhoods. Your investment also made possible a new loan to Harmony Development Collaborative, a nonprofit developer in Central City. Thanks to the Isaiah Fund s loan, Harmony demolished two vacant and dilapidated houses across the street from each other and rebuilt brand new affordable homes in their place. The houses were two of the final blighted buildings on their block. The completion of the new construction will transform the block and surrounding neighborhood and will have long-term benefits for the new homeowners, neighbors, and the entire community. Thank you again for your commitment to long-term investment in low-income communities following major disasters. Peace and Blessings, Jeffrey Dekro President, Isaiah Fund
Isaiah Fund Borrower Spotlights 4 Isaiah Fund Borrower Spotlights South Broad Community Health Providence Community Housing Gulf Coast Housing Partnership Harmony Neighborhood Development
5 Isaiah Fund Borrower Spotlights South Broad Community Health: Bringing Healthcare to Underserved Communities In April 2012, the Isaiah Fund initiated a $600,000 partnership loan to South Broad Community Health with Partners for the Common Good (with each organization lending $300,000) to finance construction of a community health clinic at the intersection of five neighborhoods along New Orleans Broad Street Commercial Corridor. The abandoned structure (pictured above left) was once a commercial pharmacy and a speakeasy. The clinic (pictured under construction above right), scheduled to be completed in the first quarter of 2013, will provide affordable, quality health care for a community of nearly 30,000 where 58 percent of residents are either uninsured or underinsured and 44 percent of residents live at or below the federal poverty line. The loan has been structured so that after seven years, South Broad Community Health will achieve outright ownership of the building. The clinic will be staffed by Tulane University doctors, providing vital preventative and primary care services.
Isaiah Fund Borrower Spotlights 6 Providence Community Housing: Creating Affordable Housing Providence Community Housing used its $300,000 Isaiah Fund loan to complete the rehabilitation of 38 affordable homes throughout New Orleans Lafitte/Tremé neighborhood. This project is part of the comprehensive Faubourg Lafitte neighborhood redevelopment plan. The homes include 27 preserved single and duplex units that were moved from another site. The rehabilitated homes will be affordable rentals for families with income levels at or below 60 percent of the area median income. The units are also built to Enterprise Green Communities standards with energy efficient appliances, water heaters, and windows.
7 Isaiah Fund Borrower Spotlights Gulf Coast Housing Partnership: Anchoring Neighborhoods Isaiah Fund borrower Gulf Coast Housing Partnership is in the midst of completing the Harrell Building (entrance pictured above), a four-story 20,000 square foot structure along the historic Oretha Castle Hailey Cultural Corridor in Central City. The New Orleans Redevelopment Authority (NORA) moved its headquarters to the Harrell building in July 2012, and the remaining space will be leased for retail. Adjacent to the Harrell Building is the 64,000 square foot, 70-unit King Rampart apartments, which includes 49 apartment units for seniors with incomes of less than 60 percent of the area median. The Harrell Building is in close proximity to the Muses, a 263-unit mixed-income apartment complex built in part with the Isaiah Fund's first loan.
Isaiah Fund Borrower Spotlights 8 Harmony Neighborhood Development: Replacing Blight with Quality Housing Isaiah Fund borrower Harmony Neighborhood Development (formerly New Orleans Neighborhood Development Collaborative) used its $305,000 loan from the Isaiah Fund to demolish and rebuild two blighted houses from the 2400 block of Magnolia Street in Central City. One of the homes, pictured above right, was rebuilt as a two-story, three bedroom, two and a half bath house, and completed in June. The second, pictured above left, is a one-story, three bedroom and two bath house across the street. Harmony recently purchased the last blighted house on the block. Once it is demolished and newly constructed, the block will be fully restored to new, occupied homes.
9 Fiscal Report Portfolio by Asset Type Loans Balance Maturity Gulf Coast Housing Partnership $ 500,000 6/1/14 Harmony Neighborhood Development $ 305,000 5/31/13 Providence Community Housing $ 400,000 7/30/15 South Broad Community Health $ 300,000 10/10/13 Total Loans $1,505,000 Mission Deposits Balance Maturity ASI Federal Credit Union $ 100,000 11/14/12 First NBC Bank/Dryades Savings Bank $ 931,260 3/7/13 First NBC Bank/Dryades Savings Bank $ 249,880 12/11/12 Hope Community Credit Union $ 250,000 11/14/12 Liberty Bank And Trust $ 249,996 11/26/12 Southern Bancorp $ 250,000 12/8/12 Total Mission Deposits $ 2,031,136 Total Portfolio $3,536,136
Fiscal Report 10 Investors and Equity Contributors Anonymous American Baptist Home Mission Societies American Baptist Home Mission Societies (Equity) Catholic Foreign Mission Society of America, Inc. CHRISTUS Health CHRISTUS Health (Equity) Congregation of St. Joseph Dignity Health Dominican Sisters of Hope Everence Community Investments Foundation for Louisiana (Equity) Jesuits of the Missouri Province Merle Lustig, in memory of Marcia Brooks Lustig (Equity) Mercy Partnership Fund Missionary Oblates of Mary Immaculate Seton Enablement Fund of the Sisters of Charity of Cincinnati Sisters of Charity of Saint Elizabeth The Sisters of Charity of Saint Vincent de Paul of New York Sisters of the Sorrowful Mother International Finance, Inc. Sisters of St. Dominic The Sisters of St. Francis of Philadelphia Tzedec Economic Development Fund With Support From: The Jewish Federation of Greater Los Angeles The Jewish Federations of North America UJA-Federation of New York $5,315,000 Total Investor and Equity Contributors
www.isaiahfunds.org If you have any questions about how to become an investor or supporter of The Isaiah Funds please contact Laura Wintroub 215.885.1293 ext. 115 Jeffrey Dekro 215.885.1293 ext. 114 261 Old York Road, Suite 734 Jenkintown, PA 19046