LISC is joining forces with the state of California to spur development and preservation of more affordable housing in both urban and rural communities. LISC is supporting the $93 million Golden State Acquisition Fund (GSAF), a new financing vehicle to help developers acquire property for multifamily rental or homeownership projects that meet the needs of low-income residents. The California Department of Housing and Community Development (HCD) seeded the fund with $23 million from voter-approved Proposition 1C. LISC and six other Community Development Financial Institutions (CDFIs) are originating loans and providing the remaining capital. In practice, GSAF buys 25 percent of loans originated by the CDFIs on its behalf at rates and terms that reduce borrowing costs, extend maximum loan terms and finance deals with higher loan-to-value (LTV) ratios than would typically be the case. Through the fund, LISC is offering loans of up to $13.9 million at 5.15 percent for up to five years. Nonprofit developers are eligible for LTVs as high as 100 percent. “By participating in the fund, our capital goes further,” said Mariano Diaz, regional vice president, with LISC. “We can support more developments and take on deals that might not otherwise work but for these terms,” he said. “Ultimately, that means we can reach more people who need quality housing and help more communities thrive,” added Stephanie Forbes, executive director of Bay Area LISC. Read a press release about the fund here.