Morgan Stanley, Kresge Foundation and LISC Launch $100 Million Investment Fund Linking Healthcare and Affordable Housing in Low-Income Communities

Mon Jan 14, 2013 10:51am EST

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NEW YORK & TROY, Mich.--(Business Wire)--
Morgan Stanley, The Kresge Foundation and the Local Initiatives Support
Corporation (LISC) have launched a first-of-its kind $100 million investment
fund that is designed to expand access to health care and affordable housing for
low-income residents and fund critical social services that help link the two in
impoverished neighborhoods. 

Called the Healthy Futures Fund, it is in part response to the Patient
Protection and Affordable Care Act, and the 20 million new health care consumers
that the legislation is likely to create. 

The fund is being seeded with capital to build 500 housing units with integrated
health services and to construct eight federally qualified health centers that
will serve an estimated 75,000 people. It is designed to spur collaboration
among health care providers and housing developers who do not often work
together even when they operate in the same low-income neighborhoods and serve
the same people. 

"Connections between health and housing for low-income people need to be
intentional. We can`t rely on serendipity to make this happen," said Michael
Rubinger, President and CEO of the LISC, a pioneering nonprofit that helps
revive neighborhoods across the country. 

"The collaboration among leading public policy programs, catalytic philanthropy,
and private sector investment is critical to deliver robust, integrated
solutions to improve the lives of low-income residents," added Audrey Choi,
Managing Director and Head of Global Sustainable Finance at Morgan Stanley.
"Morgan Stanley`s investment in the Healthy Futures Fund reflects our continued
commitment to building stronger, healthier communities." 

The fund is utilizing federal Low Income Housing Tax Credits, federal New
Markets Tax Credits, grants, loans and guarantees to raise capital. Morgan
Stanley is investing $63 million in equity through the Low Income Housing and
New Markets Tax credits. The Kresge Foundation, LISC and Morgan Stanley are
providing another $37 million in loan and grant capital for the projects. 

The initial investments will fund projects that are expected to create 2,200
jobs in hard-hit communities. 

"We can improve health outcomes for low-income housing residents by improving
their access to care," said Rip Rapson, President of The Kresge Foundation.
"That`s what this fund is designed to do. It demonstrates the kind of leverage
and innovation that can be brought to bear against large-scale social needs when
the resources of the public, private and philanthropic sectors are creatively
joined." 

LISC`s affiliate, New Markets Support Company (NMSC), is managing the fund as
part of its Building Sustainable Communities strategy to improve the quality of
life in struggling, low-income neighborhoods. Both The Kresge Foundation and
Morgan Stanley are long-time LISC partners, working together for many years to
revitalize impoverished areas. 

The fund expects to expand in the coming months with additional New Markets Tax
Credits and lending capital from new partners. Organizations already signed on
include National Development Council, NCB Capital Impact, Capital Link, Primary
Care Development Corporation, Mercy Loan Fund and Opportunity Finance Network. 

"This is the painful reality: low-income people generally experience higher
levels of sickness and disease and have lower life expectancies," said LISC`s
Rubinger. "With this fund, we can help move families from deteriorating
apartments into quality, affordable homes and provide them with first-rate
health care. That can be life-changing." 

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing
a wide range of investment banking, securities, investment management and wealth
management services. The Firm's employees serve clients worldwide including
corporations, governments, institutions and individuals from more than 1,200
offices in 43 countries. Since 2006, Morgan Stanley has executed more than $5
billion in investments to strengthen underserved communities. For further
information, visit www.morganstanley.com. 

About Kresge Foundation

The Kresge Foundation is a $3 billion private, national foundation that seeks to
influence the quality of life for future generations by creating access and
opportunity in underserved communities, improving the health of low-income
people, supporting artistic expression, increasing college achievement,
assisting in the revitalization of Detroit, and advancing methods for addressing
climate change. The foundation works in seven program areas: arts and culture,
community development, Detroit, education, the environment, health, and human
services. In 2011, the Board of Trustees approved 346 awards totaling $170
million; $140 million was paid out to grantees over the course of the year. For
further information, visit kresge.org. 

About LISC

LISC combines corporate, government and philanthropic resources to help
nonprofit community development corporations revitalize distressed
neighborhoods. Since 1980, LISC has raised $12 billion to build or rehab 289,000
affordable homes and develop 46 million square feet of retail, community and
educational space nationwide. LISC support has leveraged nearly $40 billion in
total development activity. For further information, visit www.lisc.org. 





Morgan Stanley
Matt Burkhard, 212-761-2444
or
The Kresge Foundation
Cynthia B. Shaw, 248-643-9630
or
LISC
Colleen Mulcahy, 312-342-8244


Copyright Business Wire 2013

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