Community Development Investing—more important than ever
There has probably never been a time when community investing is more important, to more people, than it is today. With the deepest recession since the Great Depression still impacting the lives of tens of millions of Americans, the significance of community development financial institutions is clear—providing access to capital, at fair terms, in the client’s best interest, to individuals/organizations most mainstream financial services firms choose to pass by.
Through MMA Community Development Investments (MMA CDI), MMA-related entities such as the Mennonite Foundation, MMA Praxis Mutual Funds, MMA Association, have invested more than $10 million in community development financial institutions across the US and around the world. And while the economic downturn has posed significant challenges for these institutions, MMA CDI has yet to experience a loss of interest or principal from these investments. These organizations are demonstrating, on a daily basis, their ability to navigate the evolving perils of the current environment while continuing to successfully lend to and serve those on the margins.
One empowering story of the ongoing need and opportunity is the continued growth of The Isaiah Funds, the nation’s first interfaith partnership for disaster recovery investing. Founded by MMA CDI and five other faith-based investor organizations, the Isaiah Funds is dedicated to investing in communities devastated by disaster. Beginning with a focus on the Gulf Coast in the wake of Hurricanes Katrina and Rita, the Isaiah Funds has raised over $5 million to support rebuilding by local communities.
The Funds’ first investment of $500,000 helped launch the construction of a significant housing project in the Central City region of New Orleans called The Muses. Now well into construction, The Muses will provide over 150 affordable housing units—nearly 60% designated for low-income families—strategically poised between the historically black, Central City community and the white, wealthy St. Charles Avenue neighborhood. It is hoped that The Muses will not only provide much needed housing but also lay the foundations for economic growth as well.
