Skip to main content
Robert Wood Johnson Foundation
  • Our Vision
    • Our Vision Overview
    • Why Health Equity
    • Focus Areas
    • Measuring RWJF Progress
  • Grants
    • Grants Overview
    • Active Funding Opportunities
    • Awarded Grants
    • Grantee Stories
    • Grant Process
    • Grantee Resources
  • Insights
    • Insights Overview
    • Blog
    • Our Research
    • Advocacy And Policy
  • About RWJF
    • About RWJF Overview
    • Our Guiding Principles
    • How We Work
    • Impact Investments
    • Staff And Trustees
    • Press Room
    • Careers
    • Contact Us
    • Accessibility Statement
Find A Grant
Global Search Dialog
    Robert Wood Johnson Foundation
    • Our Vision
      • Our Vision Overview
      • Why Health Equity
      • Focus Areas
      • Measuring RWJF Progress
    • Grants
      • Grants Overview
      • Active Funding Opportunities
      • Awarded Grants
      • Grantee Stories
      • Grant Process
      • Grantee Resources
    • Insights
      • Insights Overview
      • Blog
      • Our Research
      • Advocacy And Policy
    • About RWJF
      • About RWJF Overview
      • Our Guiding Principles
      • How We Work
      • Impact Investments
      • Staff And Trustees
      • Press Room
      • Careers
      • Contact Us
      • Accessibility Statement
    Find A Grant
    Global Search Dialog

      Improving Quality of Life in New Jersey Through Local Investment

      Brief Nov-01-2023 | Robert Wood Johnson Foundation | 3-min read
      1. Insights
      2. Our Research
      3. Improving Quality of Life in New Jersey Through Local Investment
      Download case study
      A family plays near a slide at a playground.

       

      About This Investment 

      People most directly affected by systemic barriers and inequities are best positioned to identify the solutions and actions needed to drive change. When community development centers local priorities, such as by investing in place-based community development financial institutions (CDFIs), it can help build local capacity to advance equitable opportunities for all residents to achieve their best health and wellbeing. CDFIs are mission-driven financial institutions that bring together diverse private and public sector investors to create economic opportunity in communities.

      This $4 million program-related investment from the Robert Wood Johnson Foundation (RWJF) to the Local Initiatives Support Corporation (LISC) will seed the creation of the New Jersey CDFI Capital Growth Fund (CCG), a program aimed at attracting funding from corporations and financial institutions to invest in small, New Jersey–based CDFIs and similar entities that prioritize hyper-local lending to meet community needs. A broader goal is to build the state’s ecosystem of community development lenders; expand the capacity of small, locally focused organizations; and provide more loans to communities with low incomes. 

      Why It Was Needed

      Health inequity—unfair differences in health and wellbeing correlated with the uneven distribution of social and economic resources—persists in New Jersey. Neighborhoods play significant roles in influencing people’s health and wellbeing such as through factors including the physical condition of a person’s home; economic stability, affordability, and access to good jobs; and access to parks and greenspace, among others.  

      As such, investments in developing and maintaining stable neighborhoods can be a catalyst for healthier, more equitable communities. However, Black and Latino people across New Jersey continue to be disproportionately rejected for loans, discouraged from buying homes in certain places, and more likely to live in racially and economically segregated neighborhoods marked by a lack of investments, food deserts, limited access to transit and good jobs, and environmental challenges.   

      Small, locally based New Jersey CDFIs can provide access to capital for communities that have been structurally excluded but have limited reach since most are relatively small and highly specialized to a particular sector or location. These organizations are often overlooked by large-scale national and regional funders. Given their smaller portfolio sizes and the intense competition for capital, these CDFIs may have difficulty accessing affordable loans, financial products, or services.

      How It Works

      The healthiest community development finance ecosystems support multiple types and sizes of CDFIs that can provide a wide range of products, services, and strategies to the local market. CDFIs are versatile in their ability to finance communities that historically have been excluded from investment and are able to draw on multiple sources of capital from private investors and corporations to philanthropy and government.  

      LISC-NJ works to address housing, economic development, family income, and parks and infrastructure. With RWJF’s investment, the CCG Fund will build the capacity of local community development lenders that have a strong commitment to the needs of residents. It will also help establish a program for CDFIs and CDFI-like organizations to leverage public and private funding, including the engagement of key investors such as corporations and philanthropic partners entering the impact investment space.  

      About the Borrower

      Created in 1979 by the Ford Foundation, Local Initiatives Support Corporation (LISC) and its affiliates support community development projects through grants, loans, and equity investments, as well as technical and management assistance. It has offices in nearly 40 cities and works across 2,100 rural counties in 44 states. LISC has invested $24 billion in communities, leveraging $69 billion to support the creation of 436,000 affordable homes and apartments and 74.4 million square feet of retail and community facilities.   

      Since 1986, LISC New Jersey has collaborated with community-based organizations in Newark and the surrounding region, invested more than $386 million in Greater Newark, and contributed to the production of more than 2,600 affordable homes and apartments and more than 820,000 square feet of commercial space.   

      Examples Of Community Development Lenders:

      Greater Newark Enterprises Corp.

      Greater Newark Enterprises Corporation (GNEC) is a Newark, N.J.–based nonprofit Community Development Financial Institution (CDFI). GNEC serves entrepreneurs from N.J. communities that are underserved and underbanked through the provision of loans, coaching, and consulting. In 2022 GNEC provided a total of $1.1 million in microloans, distributed among 52 entrepreneurs.

      Cumberland County Improvement Authority

      The Cumberland County Improvement Authority’s mission is to assist with development, financing, and integration of projects, strategies, and initiatives integral to the economic and environmental sustainability of Cumberland County. It has served as the county’s economic development and redevelopment entity since 2015, offering programs and services ranging from financing to property management.

      Related Content

      RWJF Feature
      A father and son walking on a sidewalk while a bus passes by.

      Impact Investing to Improve Health, Wellbeing, and Equity

      Impact investing expands our toolkit and builds on our decades-long work changing systems and policies to improve health, especially for those facing the greatest obstacles.

      2-min read

      Health Disparities
      RWJF Library
      Woman holding her child stands in a kitchen.

      Impact Investing Case Studies

      Browse a library of Impact Investing case studies.

      1-min read

      RWJF Feature
      An aerial view of a city.

      Our Home State: New Jersey

      We are working to address the drivers of inequitable health conditions in the state. 

      1-min read

      Subscribe to receive Funding Alerts & more

      Explore the latest in reflection and research from subject matter experts at RWJF and our wide network of partners.

      Email address already subscribed. Please check your inbox to manage your subscriptions.

      Subscribed!

      Thank you. You are now subscribed.

      Tell us what type of content you want to receive.

      Be informed with our twice a month newsletter updating you with relevant news and research around a Culture of Health, as well as the latest funding opportunities.

      Get funded by RWJF: Receive notifications when new funding opportunities are released.

      Receive monthly updates on RWJF-sponsored research that informs many robust health policy debates on Capitol Hill, covering topics like health equity, improving access to quality healthcare, equitable housing, and more.

      Shop talk for researchers. This monthly newsletter covers research news and opportunities from the Robert Wood Johnson Foundation.

      Communications expedite action. Get periodic research and expert insights on the best ways to communicate so we can spread what works.

      Sometimes we have news, announcements or opportunities that don't quite fit the subscription parameters above. If you're interested, we'll send you this information under "There's more...". *If you've indicated you are an EU resident, we will only send these communications if you intentionally check this box.

      Which profession or pursuit best describes you?

      Area(s) Of Interest

      Unsubscribe

      Stop receiving all emails from RWJF

      This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
      • CONTACT RWJF

        50 College Road East
        Princeton, NJ 08540-6614

         

        US Toll Free: (877) 843-7953

        International: +1 (609) 627-6000

      • MANAGE YOUR GRANTS

        MyRWJF Login

        • Facebook
        • LinkedIn
        • YouTube
        • Instagram

      • Our Vision
        • Our Vision Overview
        • Why Health Equity
        • Focus Areas
        • Measuring RWJF Progress
      • Grants
        • Grants Overview
        • Active Funding Opportunities
        • Awarded Grants
        • Grantee Stories
        • Grant Process
        • Grantee Resources
      • Insights
        • Insights Overview
        • Blog
        • Our Research
        • Advocacy And Policy
      • About RWJF
        • About RWJF Overview
        • Our Guiding Principles
        • How We Work
        • Impact Investments
        • Staff And Trustees
        • Press Room
        • Careers
        • Contact Us
        • Accessibility Statement

      ©2001- 

      Robert Wood Johnson Foundation. All Rights Reserved. 

       

      • Manage Email
      • Privacy Statement
      • Terms and Conditions