July Loan Closings: Ali Forney Center, Chrysalis, GALS LA, New Kensington CDC, North Valley Caring Services, Premium Health

$3.6 million acquisition loan with NFF as the lead lender and Local Initiatives Support Corporation (LISC) as a participating lender (June 2024)

New-York based Ali Forney Center was founded in 2002 with six beds in a church basement, in memory of LGBTQ+ youth advocate, Ali Forney. Today, it is the largest agency in the nation dedicated to supporting LGBTQ+ unhoused youth, assisting nearly 2,000 youth each year through a 24-hour Drop-In Center that connects them to shelter, meals, showers, medical and mental health services, and job-readiness programs.

"The LGBTQ community is facing a consistent and relentless attack on our rights to exist, with LGBTQ youth being targeted in nearly 50% of anti-LGBTQ bills across our country. These attacks have created a significant increase in the number of young people who are rejected by their families. Since 2016, AFC has experienced a 20% increase in the number of youth we see, year-over-year. The leading cause of LGBTQ youth homelessness is family rejection; in fact, 90% of the youth we see are unhoused because of parental rejection rooted in homophobia and transphobia."

Alexander Roque, President and Executive Director, Ali Forney Center

NFF’s $3.6 million in financing, with a 50% participation from LISC, will support Ali Forney Center’s acquisition of a four-story townhouse spanning nearly 5,000 square feet in New York’s Hamilton Heights. The townhouse will be used as a 20-bed transitional housing facility for transgender youth whose current living situations are unsafe due to harassment or other factors. In addressing the urgent need for safe homes, Ali Forney Center will foster the futures of these LGBTQ+ youth by providing them with a home environment that prioritizes their well-being in a holistic way.

"We are proud to be able to partner with NFF to leverage city funding to purchase our first building. Through NFF's nonprofit-centered lending model, we were able to navigate seemingly insurmountable challenges. The support and partnership with NFF has made it possible for us to purchase a new building that will house homeless transgender youth, ensuring that trans youth have a place to call home and a safe place in which they can rebuild their lives and create a community."

Alexander Roque, President and Executive Director, Ali Forney Center

Read more about Ali Forney Center’s story and our longtime partnership: https://nff.org/blog/beyond-bottom-line-ali-forney-center

$500,000 bridge loan (June 2024)

Founded in 1984 to assist individuals experiencing homelessness, Chrysalis helps people navigate barriers to the workforce by offering a comprehensive job-readiness program, individualized supportive services, and paid transitional employment.

"We empower our clients on their pathway to stability, security, and fulfillment in their work and lives. We serve clients at six Centers in Southern California and will help 1,800 clients find employment this year. We will also employ over 1,100 clients in our four Employment Social Enterprises in transitional jobs."

Mark Loranger, President & CEO, Chrysalis

Over the past 39 years, Chrysalis has provided wrap-around services, employment training, job search assistance, and job retention support to over 85,000 individuals across Los Angeles, Orange County, and the Inland Empire. In 2023, Chrysalis helped 1,680 clients secure employment.

Supported by the Hilton Foundation, a $500,000 zero-interest bridge loan from NFF will help Chrysalis cover ongoing organizational costs while waiting for delayed reimbursements from government contracts. With support from this loan, they can continue investing in programs that provide opportunity through employment.

"Our organization, in particular our Employment Social Enterprises, has grown significantly over the past three years.  Much of this growth has come via government contracts.  While many of our government customers pay on a timely basis, some of them average 60 to 90 days to pay.  And, at the beginning of each agency's fiscal year, we often face contract renewal delays that make the situation even worse.  Since most of our expenses are for the wages and salaries of our client-workers and professional staff, our expenses cannot be delayed, regardless of how long it takes us to be paid for the work.  NFF's working line of credit helps us to bridge these delays."

Mark Loranger, President & CEO, Chrysalis

Says Mark, "Our work is funded by a mix of private philanthropy, employment social enterprise revenue, and government grants and contracts. Managing this mix is always a challenge, but doing so during a period of rapid growth, pandemic challenges, and government funding delays has been a real test for us. The line of credit that was provided by NFF helps us to navigate our cash flow challenges, and focus our attention on where it belongs: the clients and communities that Chrysalis serves."

$4.4 million facility construction loan (July 2024)

Girls Athletic Leadership School Los Angeles (GALS LA) is a first-of-its-kind all-girls middle school preparing a generation of young women to become confident, capable leaders of their own lives. Integrating an innovative health and wellness curriculum that addresses the unique emotional and physical needs of adolescent girls, GALS LA uses daily movement and athletics to help girls build confidence, boost self-esteem, and find joy.

NFF leveraged our Department of Education credit enhancement grant program to support our $4.4 million facility construction loan to GALS LA. This charter school financing helped advance construction efforts for GALS LA's new permanent facility, a move which will allow them to serve up to 330 students – a remarkable 108% increase from their current campus capacity.

“NFF was a catalyst for GALS LA’s newly-opened and custom-built campus, which provides GALS LA with a permanent home optimized for our unique school model. From our first warm introduction, it’s been evident that NFF is tirelessly working for the success of their partners.”

Vanessa Garza, Executive Director and Founding Principal, GALS LA

The new campus includes 17 classrooms, a dance studio, conference room, multipurpose room, and administrative offices.

$1.08 million construction-to-perm loan (June 2024)

Founded in 1985, New Kensington Community Development Corporation (NKCDC) is a community-driven, trauma-informed, and equity-focused nonprofit that uses real estate development, community engagement, and direct services to meet the housing needs of Philadelphia’s Kensington, Port Richmond, and Fishtown residents. NKCDC aims to revitalize these communities by acquiring and developing high-quality affordable housing rental units for residents who qualify as low-income and creating public green spaces that all can enjoy. By offering free homebuyer courses, small business consulting, and more, NKCDC provides resources to prevent community members from being displaced due to the rising cost of living. NKCDC’s executive director, Dr. Bill McKinney, is from the Kensington neighborhood himself and is committed to addressing displacement and the impacts of the opioid epidemic on residents. NKCDC serves over 3,500 clients annually through its housing counseling, community health, nutrition education, and resident services programs.

"We’re now at a point in Kensington where we’ve seen several years of increased appetite from investors and speculative developers accumulating properties. After years of residents bearing the brunt of the drug market and violence, now they’re faced with developers that are going to increase property taxes and rents and drive residents out.

We need a comprehensive approach to development that addresses the intersection of challenges and co-creates the answers to these complex problems with residents and the community."

Nicole Westerman, Vice President of Real Estate and Economic Development, NKCDC

NKCDC is renovating its former office at 2513-2515 Frankford Avenue in Philadelphia, which consists of two adjacent, three-story row homes in the Kensington neighborhood totaling nearly 5,000 square feet. A $1.08 million construction-to-perm loan from NFF will fund renovations to revitalize two ground-floor retail spaces and four affordable housing units on the upper floors. This renovation project is part of a larger initiative to expand NKCDC’s affordable housing supply by making more units available to residents across various income levels.

"Nonprofit Finance Fund was excited about our work and took the time to get to know us and the environment that we’re working in. We’re grateful to work with a lender that was flexible and enthusiastic about the work we do, and that they were also willing to take the time to see how they could support us and learn about what we do and how to make it work."

Nicole Westerman, Vice President of Real Estate and Economic Development, NKCDC

By providing housing across a wide range of income levels, NKCDC can support residents with stable housing as their income grows, ultimately bringing them closer to homeownership.

$500,000 bridge loan (June 2024)

Since its beginnings as a soup kitchen in 1978, North Valley Caring Services (NVCS) is now the largest single-site food distribution center in LA’s San Fernando Valley and offers a multi-pronged response to addressing homelessness, poverty, and food insecurity. NVCS’s grassroots approach engages residents in the formation of community initiatives through monthly surveys to ensure its programs reflect real-time community needs. Through a weekly drive-through pantry, meal outreach, safe parking program, homeless outreach, workforce development, youth after-school programs, and adult education, NVCS provides services to over 300,000 families and individuals annually – all of whom qualify as low-income.

NVCS’s programs are growing rapidly, and its food security program alone has seen a 25% increase in demand in the first quarter of 2024, observed through a 25% increase in the number of meals provided in Van Nuys, Panorama City, Lake Balboa, and Sun Valley. Supported by the Hilton Foundation, this zero-interest $500,000 bridge loan from NFF will smooth over cash flow issues caused by delays in government grant reimbursement and provide some of the necessary funding for NVCS to invest in essential services as it expands to support the well-being of even more San Fernando Valley residents.

Read more about how North Valley Caring Services provides community support across LA’s San Fernando Valley: https://nff.org/blog/north-valley-caring-services-nonprofit-community-comes-first

$1.85 million bridge loan (June 2024)

Premium Health specializes in delivering culturally-competent services to the Orthodox Jewish community across five different locations in the Borough Park, Kensington, Ocean Park and Midwood neighborhoods of Brooklyn. As a Federally Qualified Health Center, Premium Health is committed to providing compassionate, comprehensive health care and behavioral health services to everyone in the community, regardless of one’s ability to pay. In 2023, its programs supported approximately 27,000 individuals and families.

"At Premium Health, we are committed to promoting community wellness through comprehensive, culturally competent health care, and expanding services to meet the needs of our underserved community. As a nonprofit reliant on government funding, we depend on strong partners like NFF. Their ability to offer flexible solutions for nonprofits makes our expansions possible.

NFF's bridge loan was crucial during a period of delayed funding, allowing us to outfit new health service sites and maintain our commitment to improving health outcomes for the underserved in our community. At capacity, the sites supported through this project will handle 40,000 visits annually. We and the community are deeply grateful for NFF’s invaluable partnership."

Meir Brody, CEO, Premium Health

Premium Health has grown significantly in the last two years, with the number of patient visits tripling after it opened two pediatric extension clinics in fiscal year 2023. Between 2022 and 2023, its revenue increased by over 120% from $25 million in 2022 to $57 million in 2023. With increasing demand for Premium Health’s services, a $1.85 million bridge loan from NFF will cover the gap in funding for medical equipment purchased for its new 4510 16th Avenue location as the organization waits for delayed reimbursements from government funding. This investment will positively impact the overall health and well-being of thousands more residents throughout Brooklyn by creating more opportunities for them to access the quality healthcare they need.

Learn more about NFF’s loan products on the financing page of our website.