Social Impact Investing and the Healthy Futures Fund Nov. 18, 2015 Hosted by: Federal Reserve Bank...
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Social Impact Investing and the Healthy Futures Fund Nov. 18, 2015 Hosted by: Federal Reserve Bank of Dallas Local Initiatives Support Corporation The Kresge Foundation Morgan Stanley
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Transcript of Social Impact Investing and the Healthy Futures Fund Nov. 18, 2015 Hosted by: Federal Reserve Bank...
Social Impact Investing and the
Healthy Futures Fund
Nov. 18, 2015
Hosted by:
Federal Reserve Bank of DallasLocal Initiatives Support CorporationThe Kresge FoundationMorgan Stanley
Health of our Nation,Health of our Economy
• Why health matters
• Community health
• Partnership-driven models
Health is an Asset
Health
IncomeEducation
ZIP Code Matters
“Across America, babies born just a few
miles apart have dramatic differences in life
expectancy.
To improve health we need to improve people’s
opportunities to make healthy choices—
in the places where they live, learn, work and play.”
Robert Wood Johnson Foundation Commission to Build a Healthier America, www.rwjf.org/en/about-rwjf/newsroom/features-and-articles/Commission/resources/city-maps.html
SOCIAL DETERMINANTS OF HEALTH
County Health Rankings and Roadmaps, a Robert Wood Johnson Foundation Program, www.countyhealthrankings.org/resources/county-health-rankings-model
The ZIP Code Improvement Business
Income
The Community and Economic Development Industries:
Build high‐quality, service‐enriched affordable housing
Support small businesses and entrepreneurship
Finance community facilities (e.g., child care centers, charter schools, grocery stores, shelters, community centers, health clinics)
Helping individuals build and repair their credit and access quality financial products and services
Investing for social impact
Morgan Stanley – Investing through Community Development
Kresge Foundation – Social Investment and program alignment
Healthy Futures Fund:The Founders
Launched in early 2013, capitalized with $100 million in resources
Founding Partners: Morgan Stanley, The Kresge Foundation, LISC
Fund Manager: New Markets Support Company (a LISC subsidiary)
LISC Overview
Formed in 1980, the Local Initiatives Support Corporation is the largest community development institution in the country
Building Sustainable Communities platform for investment includes housing, family income and wealth
building, economic development, health and education.
LISC By the NumbersTOTAL SINCE 1980
$14.7 billion invested leveraging $44.1 billion in total development
330,000 affordable homes and apartments53 million square feet of commercial, retail &
community space including: 194 early childhood centers serving 20,730 children 192 schools financed serving 77,000 students 292 playing fields renovated for 584,000 kids 55 health centers 63 grocery stores and food markets
LISC Footprint
Founded in 1924, The Kresge Foundation is a $3.5 billion private, national foundation that works to expand opportunities for low-income people
Areas of investments include arts and culture, education, environment, health, human services and community development
Social Investment Practice at The Kresge Foundation
The Kresge Foundation: Overview
Healthy Futures Fund (overview)
Other investment highlight
Social Investment @ Kresge
Community Development @ Morgan Stanley
Healthy communities
Equitable transit-oriented development
Small businesses
Public sector support and partnerships are critical
Since 2010, over $9Bn to develop more than 58,000 affordable housing units and creating or retaining nearly 52,800 jobs
Collaboration with partners, like LISC and Kresge, key element
Our approach is “Housing Plus”
Footprint is national
Morgan Stanley Investments
+
Focus on impact
Trusted partners
Efficient deal execution and delivery
Morgan Stanley and HFF
Healthy Futures Fund:Goals
Expand Primary Care Access in underserved low-income communities nationwide
Incentivize Cross-Sector Collaboration to improve the health of low-income individuals and families
Provide New Capital to Federally Qualified Health Centers (FQHCs) at a time of significant patient growth
Promote More Efficient Execution for New Markets Tax Credits to finance health centers, in an effort to reduce transaction costs & better leverage capital from investors
Weave “health” into the fabric of LISC’s work nationwide
Low Income Housing Tax Credit equity for affordable housing developments incorporating health care programs and services
New Markets Tax Credit financing for health center construction and permanent financing
Predevelopment financing for health center and affordable housing projects
Grants and credit enhancements supporting Healthy Futures Fund projects
Human capital and expertise to support innovation and execution of program
Healthy Futures Fund:$100 million Capital and
Resources
For Federally Qualified Health Centers and Look-Alikes: Project must be located in a New Markets Tax Credit qualified census tract. Prioritize health centers that co-locate with or provide access to services such as
affordable housing, nutrition and healthy food access, employment and job creation, education, physical activity and recreation.
The qualifying minimum loan size is $2MM.
For affordable housing projects using the Low Income Housing Tax Credit: The proposed housing is co-located with a Federally Qualified Health Center or
community health center. The health care partner must enter into a minimum of a 5 year lease to provide
services at the property. The partners will agree to report on metrics to inform the benefits of the
healthcare and housing linkage.
Project Eligibility
Invested in 10 projects total
Primary care capacity to serve 96,000 individuals in low-income communities
418 affordable housing units
13 community-based partnerships that address the broad social determinants of health
Saved over 50% in NMTC transaction costs for health centers through streamlined fund structure and documentation
HFF Impact
HFF Project Highlight: Benning Road campus, Washington DC
Sponsor and Operator: So Others Might Eat and Unity Healthcare
Investment Highlights:• $90 million development project funded
with $20 million HFF Low-Income Housing Tax Credit equity investment and $14 million HFF New Markets Tax Credit investment
• $100,000 HFF grant to enhance health programming and access for housing residents
Community Impact:• Affordable housing units• On-site primary care• On-site employment training• Health-focused services and
programming jointly provided by housing and health care partner.
HFF Project Highlight: Brockton Neighborhood Health Center, Brockton,
MASponsor and Operator: Brockton
Neighborhood Health Center and Vicente’s Grocery
Investment Highlights:• $8 million development project 100%
funded by HFF New Markets Tax Credit financing
• $100,000 HFF grant supporting expanded health center services and collaborative programming with housing and grocer partners
Community Impact: • Primary care capacity to serve 6,700
new patients• Job creation• Nutrition programming and outreach
with grocery and housing partners
$100 million in new resources to capitalize Healthy Futures Fund 2.0
Evaluation of the impact of the first Fund
Broadened investment scope to address the social determinants of health
New ways to expand and replicate model
HFF 2.0 – What’s Next
Lessons Learned
Lessons learned: • Community health centers are natural partners for a range of community
development efforts, but require incentives and promptings to partner and take on debt to respond to market changes;
• The Healthy Futures Fund is a powerful tool for collaboration among CDFIs, financing partners, FQHCs, and community development partners
Questions:• How can we best leverage the strong network of current Healthy Futures
Fund partners to increase health center collaborations with community development partners and positively impact community health?
• Can the benefits of improved primary care access and preventative care be quantified and monetized?
• How can the partners further and deepen the integration of health into its work nationwide?
Recommended ResourcesReadings“Healthy Communities: A Framework for Meeting CRA Obligations,” Federal Reserve Bank of Dallas, March 2014 “Appendix: Experts in Healthy Communities (In Their Own Words),” Federal Reserve Bank of Dallas, March 2014“Time to Act: Investing in the Health of Our Children and Communities,” Robert Wood Johnson Foundation Commission to Build a Healthier America, January 2014“A Practitioners Guide for Advancing Health Equity,” Centers for Disease Control and Prevention, Division of Community Health “Building Sustainable Communities: Initial Research Results,” Christopher Walker, LISC, October 2014
WebsitesHealthy Futures Fund: www.healthyfuturesfund.orgFederal Reserve System’s Community Development Resources: fedcommunities.org/Build Healthy Places Network: www.buildhealthyplaces.orgGlobal Impact Investing Network: www.thegiin.org
*For details, see https://www.houston.org/earlymatters/.**For details, contact the Unite Way of Greater Dallas.***For details, contact Children’s Health.
Income
Recommendations for Action
#1: Prepare your story by putting it in a “healthy communities” perspective
a. Inextricable link between education, income, health
b. Why ZIP code matters
c. How your work is fundamental to healthy communities (e.g., list which healthy communities components are important to you and why)
d. Economic, financial, social, environmental value of your work
Income
Recommendations for Action#2: Reach out to “unusual suspects” among healthy communities experts (experts in built environment, employment, public/personal safety, social networks, etc.)
a. Learn their perspectives (goals, successes, challenges)
b. Identify their community and economic development priorities (activities, geographic markets)
c. Ask them about community collaborations that they’d recommend you joining
d. Invite them to participate in your community collaborations
#3: As you decide how to address health and safety issues, engage community entities and residents. Residents can tell you what will work, what won’t and what kind of change is meaningful to them.
Income
Recommendations for Action
#4: Use your expertise to promote a culture of health. This could involve:
Writing an op-ed piece in the local newspaper
Sharing your research findings in public forums (e.g. with city council)
Sitting on boards of local nonprofits that address nonmedical issues that affect health and safety concerns (financial capacity, built environment, employment, public transportation, social networks, etc.)
#5: Define success not only as learning what works but learning what doesn’t work
Reward partners for sharing these learnings Incorporate these learnings into the feedback loop.
This process of continual improvement is vital to creating a culture of health.
CONTACTS
Federal Reserve Bank of DallasElizabeth [email protected]
Local Initiatives Support CorporationEmily [email protected]
Morgan StanleyLindy [email protected]
The Kresge FoundationKimberlee [email protected]
Contacts
