LISC Houston Pre-development and Preservation Grant Application 

| Resume a previously saved form
Resume Later

In order to be able to resume this form later, please enter your email and choose a password.

About
The Local Initiatives Support Corporation (LISC), created in 1979 is a non-profit community development financial institution (CDFI) that supports community development initiatives across the country. LISC has offices in nearly 40 cities and works across 2,400 rural counties in 49 states. Since its creation, LISC has invested $29.7 billion into communities, leveraging $82 billion to support the creation of 489,261 homes affordable homes and apartments and 81.5 million square feet of retail and community facilities. As an intermediary, LISC is uniquely positioned to provide a range of grant dollars, one-on-one technical assistance, access to consultants, and trainings to build our partners’ capacity. Plus, as a CDFI, LISC is also able to provide loans and tax credit equity to help community development organizations develop affordable housing, commercial projects, and community spaces.

LISC Houston was established in 1989, and since its inception has offered a wide range of technical assistance and capacity-building resources to local non-profit and emerging real estate developers to spur the preservation and development of affordable housing. Our approach is consultative, involving dialogue to identify priority issues. We support organizations and individuals as they leverage funding opportunities, navigate complex housing regulations, develop comprehensive housing strategies, strengthen organizational practices, and increase their ability to serve as effective neighborhood partners.  In 35 years, LISC Houston has invested $593 million, and leveraged $1.6 billion in community development resulting in more than 10,000 affordable homes built and or preserved. Housing continues to be a core issue in the work of comprehensive community development. A safe, affordable home is key to financial health and well-being, and the foundation for sustainable, economically vibrant, and diverse neighborhoods. The benefits of affordable housing extend beyond the walls of a home to the broader community. It boosts spending and employment in the surrounding economy, brings revenue into local governments, and reduces the likelihood of foreclosure.   
Problem
The 2023 Gap Report, issued by the National Low Income Housing Coalition (NLIHC), reveals Texas ranks sixth among the nation's worst states for affordable housing. Additionally, Houston stands fifth among the top ten metropolitan areas where extremely low-income renters face the most severe housing shortages. The escalation of costs and the proliferation of robust housing development geared towards higher incomes pose the imminent risk of displacement, consequently diminishing the availability of quality affordable housing options in both urban and suburban neighborhoods for low-to-moderate income households. According to The 2023 State of Housing in Harris County and Houston, findings as of 2021 indicate that 51% of Harris County residents who are renters, are grappling with housing cost burdens, allocating more than 30% of their income to housing expenses. 

Prospective homeowners encounter similar challenges. The 2022 State of Housing report by the Kinder Institute for Urban Research at Rice University indicates that homeownership rates for Black households in Harris County decreased from 41% in 2010 to 36% in 2020. Concurrently, rates for white households dropped from 71% in 2010 to 68% in 2020, while Hispanic household rates remained relatively stable at around 51% in 2020. This trend is exacerbated by substantial wage disparities across various sectors, with low-wage workers, particularly those in service and retail industries, grappling with financial strain. Coupled with the consistent growth in home prices across the Houston market during the same period, there is an urgent need for additional affordable housing options. 

To address these pressing problems, LISC Houston collaborates directly with nonprofit community development organizations and emerging developers catering to low-to-moderate-income Houstonians, with a primary focus on sixteen priority communities with the most acute needs. Despite a median household income in the city of Houston of $46,187, the figure is notably lower in LISC’s priority neighborhoods, at around $36,307. Ensuring a sufficient supply of quality, sustainable housing at an affordable price point remains a pivotal objective through our program. Without adequate housing, the impact of our endeavors at LISC could be severely compromised, or only reach a fraction of their intended beneficiaries. 
Funding Purpose
This funding opportunity aims to tackle the pressing challenges of attainable affordable housing in the Greater Houston area by bolstering the development and preservation of both single family and multifamily affordable housing units including mixed use developments. This document will explain what areas are eligible for funding, eligible activities, and other pertinent information related to this funding opportunity. 
Funding Areas
1. Pre-development for Affordable Housing: Support for projects at the pre-development stage, emphasizing activities within the planning phase. Projects already in the construction phase will not be eligible. For clarity on eligible pre-development activities, refer to the "examples" section below. Preference will be given to projects that demonstrate outright site ownership. However, projects with a clearly defined pathway to site ownership in the near future, such as a purchase agreement or acquisition letter, will also be considered. Applicants must provide a concise overview of the intended building use and development plan. 

2. Preservation of Affordable Housing: Support for preservation of affordable housing. While examples of key preservation aspects are provided below, it's important to note that preservation efforts can extend beyond these examples. Applicants must provide a concise overview of the intended building use and development plan. 
Eligible Activities
Examples: Pre-Development (including, but not limited to) 
  • Environmental review on potential housing project 
    • Environmental expenses (e.g., Phases I/II, Hazardous Materials Survey, Remediation Plans) 
  • Architect and engineer services (e.g. planning, conceptual design, schematic design and/or structural testing) 
  • Market study to confirm the real estate use 
  • Other consultants (e.g., development consultants) 
  • Legal expense (e.g. finance, acquisition) 
  • Application fees (e.g., loan applications) 
  • Site development project manager (third-party cost only) 
  • Third-party community engagement and planning (feedback and input directly related to project site) 
  • Fiscal sponsor fees 

Examples: Preservation (including, but not limited to) 

  • Rehabilitation and Renovation: Upgrading and repairing existing affordable housing units to meet current HUD standards and ensure they remain habitable and safe for residents.  
  • Preventing Conversion: Implementing measures to prevent affordable housing units from being converted into market-rate housing or other uses that reduce the affordable housing stock.  
  • Extending Affordability Periods: Renegotiating or extending the terms of affordability restrictions on properties to keep them affordable for an extended period, often through agreements with property owners or government subsidies.  
  • Financial Assistance and Incentives: Providing financial support, such as low-interest loans, grants, or tax incentives, to property owners and developers to maintain and improve affordable housing units.  
  • Policy and Legislative Measures: Enacting and enforcing laws and regulations that protect tenants and preserve affordable housing, such as rent control policies or tenant protection laws that promote affordable housing.  
  • Acquisition and Ownership: Nonprofit organizations, community land trusts, or government entities purchasing and managing affordable housing properties to ensure long-term affordability. 

Non-Eligible Expenses include but are not limited to: 

  • Overhead Expenses: General overhead or administrative expenses that are not directly attributable to the project's pre-development activities. 
  • Marketing and Advertising Expenses: Costs related to marketing and advertising the project to potential buyers or tenants. 
  • Insurance Premiums: Costs for insuring the property or the development project. 
  • Construction Costs: Actual construction expenses, including labor and materials, once the project moves beyond the pre-development phase. 
  • Taxes: Property taxes, sales taxes, or other related taxes. 
  • Interest Payments: Interest on loans or financing unrelated to pre-development activities. 
  • Furniture and Equipment: Costs for furnishing or equipping the developed property. 
  • Post-Construction Expenses: Landscaping, maintenance, or other costs associated after the completion of construction. 

Additionally, note that the funds cannot be used to pay off debt (e.g. payoff or pay down loan)
Eligible Entity Criteria
  • For-Profit Emerging developers - company assets should not exceed $5,000,000. Yearly revenue should not exceed $2,500,000. 
  • For-Profit Developers with company assets greater than $5,000,000 and yearly revenue greater than $2,500,000 must have a non-profit organization or a for-profit Emerging Developer (as defined above) as a partner. 
  • Non-profit housing developers  
  • Non-profit organizations (e.g. religious institutions) with experienced non-profit, emerging, and/or for-profit developers as partners
Grant Amount
Awards are available for up to $25,000 to non-profit housing developers and/or for-profit emerging developers. Application must include an itemized budget.
Project Budget
Provide a detailed budget outlining all predevelopment and preservation costs associated with the project. Please download the budget template, complete it and upload it with your online application. The excel template has two tabs: one for predevelopment and one for preservation. Please only complete the template for the category in which you are applying.

Pre-Development Budget Template
Funding Timeline
August 2024 – May 2025 
Evaluation Criteria
  1. Project Overview  
    1. Projects that clearly address affordable housing development, preservation, and access. 
    2. Clear demonstration of how the funds will be used for eligible expenses directly related to predevelopment. 
  2. Community Impact  
    1. Projects that demonstrate a strong potential to significantly impact the target community, especially underserved populations. 
    2. Clear, feasible plans for community engagement and inclusion in the project development process. 
  3. Feasibility and Project Readiness  
    1. Assessment of the project’s overall feasibility, including a realistic timeline, thorough budget planning, and evidence of preliminary work (e.g., secured land, initial assessments completed). 
    2. Readiness to proceed with predevelopment activities promptly upon funding. 
  4. Organizational Capacity  
    1. Evaluation of the applicant organization’s experience and track record in successfully managing and completing similar projects. 
    2. Strength and expertise of the project team. 
  5. Financial Need and Leveraging  
    1. Demonstration of financial need and effective use of requested grant funds. 
    2. Ability to leverage additional resources or funding to maximize the impact of the grant. 
Terms and Conditions
Applicants may apply once for this round and for one entity only. Awards will be made to qualified for-profit emerging developers and non-profit developers, and eligibility is based on accurate and complete submission. 

If selected as a finalist, you will be notified via email. Being selected as a finalist does not guarantee a grant will be awarded. As a finalist, additional documentation will be required, including financial statements (preferably audited or CPA prepared financials) for 2022 and 2023 to verify revenue. Must be certified in good standing with the Texas Secretary of State. A 501(c)(3) letter for non-profits, and EIN. This due diligence inquiry may include background search that we will conduct at our expense. If the due diligence step is successfully completed, we will ask for W-9 and appropriate banking information so that we may transfer funds by ACH to your designated account.
Eligibility Standards
1.  Non-Profit Housing Developers: Registered 501(c)(3) that engage in the process of developing real estate properties, which can include residential, commercial, Industrial, or mixed-use projects to low-to- moderate income individuals residing in Harris County. Please see income categories here. Must provide financial statements (preferably audited or CPA prepared financials) for 2022 and 2023 to verify revenue. Must be certified in good standing with the Texas Secretary of State. 

2.   For-Profit Emerging Developers: Registered for-profit business entities - company assets should not exceed $5,000,000. Yearly revenue should not exceed $2,500,000. Must have 2022 and 2023 financial statements (e.g. tax returns, audits, and CPA prepared financial statements) to verify revenue. Must be a business entity (e.g. LLC, LP, S Corp, C Corp – Sole Proprietors are not eligible). Must be certified in good standing with the Texas Secretary of State. 

3.   For-Profit Developers: with company assets greater than $5,000,000 and yearly revenue greater than $2,500,000 must have a non-profit organization or a for-profit Emerging Developer (as defined above) as a partner. Must have 2022 and 2023 financial statements (e.g. tax returns, audits, and CPA prepared financial statements) to verify revenue. Must be a business entity (e.g. LLC, LP, S Corp, C Corp – Sole Proprietors are not eligible). Must be certified in good standing with the Texas Secretary of State. 

4.   Non-Profit organizations: (e.g. religious institutions) with experienced non-profit, emerging, and/or for-profit developers as partners. Must provide financial statements (preferably audited or CPA prepared financials) for 2022 and 2023 to verify revenue. Must be certified in good standing with the Texas Secretary of State. 
Privacy
Applications are submitted online through Form Assembly. Information provided through the application process is the responsibility of each applicant. Submitted applications will not be shared with the general public or any fellow applicants. Applicants shall not hold LISC, its affiliates, members, partners, and staff liable for any losses, damages, costs, or expenses, of any kind relating to the use or the adequacy, accuracy, or completeness of any information loaded in the form. 
Publicity
If awarded, please be advised that the business/applicant’s application information, name, statements, and other information provided during the award process may be used for promotional purposes in all forms and media and the business/applicant may be contacted by LISC and/or the program sponsors for such purposes. Applicant grants to LISC and the program sponsors a perpetual license to use such information without additional compensation (except where prohibited by law), and without any right to review and/or approve such content. Until notified, applicants must agree not to share any status as a finalist publicly, including but not limited to all social media platforms, news media, or local publications.
Monitoring
LISC may monitor and conduct evaluation activity funded by the LISC Houston Pre-development & Preservation Grant. This might involve a review of quantitative or qualitative data needed to understand the impact of the fund. 
Submission Guidance
It is recommended that before completing and submitting the online form, respondents save their answers in a separate backup document, as your work may not be saved if you leave the web page before submitting the application. You may also lose your work if your internet is disconnected, or as a result of other potential web browser issues. We cannot accept changes to your application once it has been submitted, so please review it carefully.  

You will receive a confirmation email after successful completion of this application.

 Applicant Information





Project Overview
Note: To be classified as low or moderate income an individual or family's household income must be 120% of the Area Median Income for Houston/The Woodlands/Sugar Land Region. See chart. Preference goes to deeper affordability projects.














Eligibility
15. Entity Information













Total Number of Workers
The following questions ask about the number of workers at the entity. For this section, full-time workers are those who work 35 hours/week or more; part-time workers are those who work less than 35 hours/week.


15.1 Partner Entity Information













Partner Entity Total Number of Workers
The following questions ask about the number of workers at the entity. For this section, full-time workers are those who work 35 hours/week or more; part-time workers are those who work less than 35 hours/week.


Partner Contact Information
20.1 Primary Contact: Project Manager or Person Completing Application





Secondary Contact:  Lead Business Owner/Non-Profit Executive Director Information










Contact Information
20. Primary Contact: Project Manager or Person Completing Application 












Socioeconomic Data 
The next portion of the application requests socioeconomic data related to the lead business owner/non-profit executive director. Please provide information based on how the individual self-identifies. 




Community Impact





Feasibility & Project Readiness 




Organizational Capacity 



Final Step: Please review the information below, e-sign and submit your application:


Thank you for completing your application. Please click 'Submit' below to complete your submission. 

If your business or non-profit is selected as a finalist, you will be notified via email. Being selected as a finalist does not guarantee a grant will be awarded. As a finalist, additional documentation including tax returns/financial statements to verify revenue, a 501(c)(3) letter for non-profits, and TIN/EIN for the business may be required in order for us to perform the due diligence required by the program’s funding source. This due diligence inquiry may include a business verification and background search that we will conduct at our expense. 

If the due diligence step is successfully completed, we will ask for W-9 and appropriate banking information so that we may transfer funds by ACH to your designated account.

For general questions, please check the www.lisc.org/houston page regularly for updates about the LISC Houston Housing Predevelopment and Preservation Grant for additional questions please contact: Jason Grant, Program Officer, (713) 597-6836 jgrant2@lisc.org. 
 
 
For data security questions, please review LISC’s Privacy Policy. 

For updates on additional resources and programs, visit the www.lisc.org/houston page.


Save my progress and resume later | Resume a previously saved form