Living Space

The MSI-Community Living Space Initiative (LiSI)

What is LISI?

The Minority Serving Institution (MSI) / Tribal Colleges and University (TCU) Living Spaces Initiative (LiSI) is a project through which Student Freedom Initiative (SFI) partners with communities and MSIs/TCUs to meet critical housing shortfalls. Through workforce housing to ensure workers within the communities can afford to live in these communities and student housing to increase the retention and graduation rates of students attending MSIs/TCUs, SFI partners with capital providers and general contractors who are mission aligned, have the expertise, capacity and past performance, and are willing to adhere to guiding principles coordinated within our participating institutions. The LiSI not philanthropy but rather an investment in the future of these communities, institutions, families, and students to uplift their social and economic mobility in accordance with our mission.

NBC News reported substantial increases in new students applying to member institutions following the COVID-19 pandemic, in some cases as much as 50% increases. The Hope Center For College Community and Justice at Temple University and Center for Study of HBCUs at Virginia Union produced a 2022 Report that reported 55% of HBCU students surveyed said they struggled to maintain safe, affordable, and consistent housing, with 20% experiencing homelessness. The housing crisis at HBCUs is not new.

INITIAL WORKFORCE HOUSING PROJECT

WHY FOCUS ON INCREASING THE LIVING SPACES IN MSI-ANCHORED COMMUNITIES?

First year students with on campus housing have higher retention rates and tend to persist.
The graduation rate of second year students with on campus housing is ~18% higher than those who do not have on campus housing.
The HBCU experience is enhanced for those first year student who remain on campus after first year.
Parents, especially out of state parents, perceive on campus housing to be safer alternative for student.
For some communities, on campus housing is a cheaper alternative.

WORKFORCE HOUSING PARTNER: THE STEINBRIDGE GROUP

The Steinbridge Group believes that private capital can address social and economic dislocations in a way that is consistent with US economic realities. We activate underutilized assets in pivoting submarkets of major US metros. This approach leverages primary market fundamentals with emerging submarket growth to deliver outsized risk-adjusted returns.

GUIDING PRINCIPLES

21st Century Living Space(s)

Ensure the livings spaces include amenities that residents desire and are consistent with cost of living and salaries in local area.

No Debt or Upfront Out of Pocket Costs

Recognize the accreditation risk associated with additional debt on the balance sheet and operational risk associated with reallocating existing cash.

Opportunity to increase revenue and to Invest

MSI(s) who can invest in a LiSI project are provided the opportunity, but ability to invest is not a prerequisite for participation.

Reasonable Return on Investment

Selected LiSI projects must be economically viable to build, be sustainable over time, and be a win-win-win for all stakeholders.

Local Jobs & Contractors

Create local jobs throughout the LiSI project lifecycle by hiring residents and companies, including diverse firms, from the local community.

MSI/TCU Student Paid Internships

Create opportunities throughout the LiSI project lifecycle by hiring local college students who would gain career and life learning experiences.

Reduce Student Loan Debt Burden

Allocate a percentage of the net profits received from a LiSI project to SFI’s Alternative to Parent PLUS loan product for eligible students.

Minimize Operational Burden

Provide the flexibility in LiSI projects for the general contractor to manage not only the design & construction but also the long-term operations and maintenance.