In the News
Neighborhood Development Fund Marks Big Milestone
Melinda Rizzo
Philadelphia Business Journal, June 29, 2007
When The Reinvestment Fund first began philanthropically investing in Philadelphia neighborhoods 22 years ago, some people thought that $1 million in lending seemed like an ambitious goal.
Done, and done.
On June 14 the Old City organization celebrated a much bigger milestone: It gave out $100 million in a single year in fiscal 2007 as part of its mission to support local community improvement.
Since its founding in 1985, it has invested more than $600 million in more than 2,000 projects, according to Margaret Berger Bradley, TRF's director of communications and investor development. TRF began in Philadelphia by offering small community development specifically in Center City. Its funds have helped to build from scratch or renovate affordable housing, charter schools, medical facilities and supermarkets.
As interest has grown in TRF's lending techniques, which combine public and private partnerships to bolster underserved populations in the region, its outreach has expanded beyond Philadelphia to New Jersey.
Most recently, it embraced Washington, D.C., where more than $2.5 million in Calvert Foundation money is being used to create charter schools, affordable housing and new grocery stores.
"TRF provides a vision which is comprehensive. They don't just build the houses, they create communities," said Lisa Hall, director of lending for Calvert Foundation. The Bethesda, Md.-based nonprofit group's mission is to creating thriving, sustainable communities among low-income populations.
Hall said an affordable housing community using TRF funds is also on the drawing board in Baltimore.
One way the organization encourages neighborhood revitalization is by arranging loans with sub-market interest rates.
"We are able to offer lower-than-market interest loans because we've built partnerships with some high-profile lenders. These elements have helped our programs grow rapidly," said Jeremy Nowack, TRF president and CEO.
"Our work is the most important of domestic policies in America today by putting into practice the concept of inclusive prosperity," Nowack added.
Nowack said inclusive prosperity is based on the idea that communities work best when all income levels have an opportunity to fully participate and share in the resulting benefits.
Some of the financial institutions backing TRF projects are J.P. Morgan Chase and Merrill Lynch of New York City and Bank of America Corp. and Wachovia Corp., both based in Charlotte, N.C.
Specific Philadelphia neighborhoods that have benefited from an infusion of TRF funds include North Philadelphia's Brewerytown and sections of West Philadelphia.
Roughly $10 million has been invested to revitalize the Temple University neighborhood around Broad Street. A new shopping center and supermarket in the LaSalle University area is also planned, Nowack said.
Mastery Charter Schools is another beneficiary of TRF money. Scott Gordon, founder and CEO of the charter schools, said that three of its four schools in Philadelphia would not have been possible without TRF funding.
"Most conventional lenders wouldn't touch us. TRF has been a flexible partner with us recognizing not only the bottom line but the human value in financing our projects," Gordon said.
Mastery Charter Schools, founded in 2001, serves about 1,300 Philadelphia students in middle and high school. The Thomas Campus in South Philadelphia, Shoemaker Campus in Overbrook and the Pickett Campus in Germantown were former School District of Philadelphia public school facilities, which Mastery Charter Schools renovated using TRF funding.
"We have a unique and unusual agreement with the school district, which TRF was amenable to," Gordon said.
Funding from private sources is another TRF keystone element.
The White Dog Café in Philadelphia and the Sisters of St. Francis in Aston, Delaware County, are among the local investors supporting TRF.
Judy Wicks, owner of the White Dog Café, was the recipient of TRF's George Bailey Award, an honor named for the communitarian efforts of Jimmy Stewart's character in the 1946 Frank Capra film "It's a Wonderful Life."
In the film, Stewart's character is granted a wish by his guardian angel to see what the world would be like if he'd never been born. The experience shows Bailey how many lives one person impacts.
Nowack said the George Bailey Award is aimed at honoring the unsung heroes in everyday life who make a huge difference in many lives.
Wicks said she invests 100 percent into TRF because she wants to keep her philanthropic efforts local. "When you put money in other corporate organizations, yes it goes to help someone, somewhere, and that's important. I want my money to help those in the communities where I live and work," Wicks said.
The Sisters of St. Francis of Philadelphia, a Franciscan order of religious women dedicated to serving the needs of the poor, has been a steadfast investor in TRF since its inception in 1985.
"TRF's efforts contribute to systemic change and their strategies create opportunities for many who have been marginalized," said Sister Nora Nash, director of corporate social responsibility for the order.