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Sub-Prime Mortgage Crisis Concerns LISC President |
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Local Initiatives Support Corporation: Michael Rubinger, chief executive officer of Local Initiatives Support Corporation, is worried about rising defaults in the subprime mortgage market. His viewpoint, however, is somewhat different: "The danger is that a lot of communities that have recovered could see another wave of houses being abandoned and boarded up. Little has been written about the mortgage-market crisis's potential to unwind the hardfought battle against urban decay, whose successes have revitalized so many cities. One of the warriors in that battle has been LISC, an organization that is not well known despite its broad reach and illustrious chairman of the board, Robert Rubin, a former Treasury secretary. Over the past 25 years, the organization has partnered with community groups across the country, arranging financing and technical support for targeted building projects. Among LISC's contributions to the country's now-revitalized neighborhoods have been 27 million square feet of community and retail space, 196,000 affordable homes and apartments, 136 playing fields, 70 schools, and 120 child care facilities. In the 1980s, as the federal government began to retreat from financing local community development, the role was taken over by state and city authorities. The timing was perfect for LISC, which sought out nonprofit community groups in need of financing, and secured grants and loans for specific development projects from the likes of JP Morgan Chase, the Kresge Foundation, and Washington Mutual. Recognizing that fallingdown and crime-ridden buildings are not the only threats to healthy communities, the group has begun to invest more widely. Vibrant stores are essential to successful neighborhoods, it believes, because they create jobs and street traffic, which boosts local safety.
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