Prudential Insurance Invests in Affordable Housing Through Local Initiatives Managed Assets Corporation

The Prudential Insurance Company of America is committed to providing affordable housing in inner-city neighborhoods, particularly in Newark, New Jersey, and 14 other urban areas across the nation. Through its Social Investment Program, Prudential has agreed to purchase up to $5 million in 15-year bonds issued by the Local Initiatives Managed Assets Corporation (LIMAC). The financing aims to enable LIMAC to purchase loans from community development loan originators, increasing lending activities and offering longer-term loans to low-income families.

Key Takeaways:

• Prudential Insurance has committed to investing up to $5 million in 15-year bonds issued by LIMAC to support affordable housing in 15 urban areas.
• The financing will enable LIMAC to purchase loans from community development loan originators, increasing lending activities and offering longer-term loans.
• LIMAC was created in 1986 as an affiliate of the Local Initiatives Support Corporation (LISC) to attract new capital to the community development field.
• Prudential's Social Investment Program has invested over $30 million in community-based development projects in the past year, aiming to bring about positive change.
• The program has seen significant progress, with Prudential purchasing $2 million in LIMAC Series A bonds in 1988 and $4 million in LIMAC Series B bonds in 1991.
• The Local Initiatives Managed Assets Corporation pools loans, provides credit enhancements, and converts loans into securities, which are then sold to institutional investors through private placements.

Statistics:

• $5 million: The maximum amount Prudential Insurance has agreed to invest in 15-year bonds issued by LIMAC.
• 15: The number of urban areas across the nation that will benefit from the financing, including Newark, New Jersey.
• $30 million: The amount invested by Prudential's Social Investment Program in community-based development projects in the past year.
• 1986: The year LIMAC was created as an affiliate of the Local Initiatives Support Corporation (LISC).
• $2 million: The amount Prudential purchased in LIMAC Series A bonds in 1988.
• $4 million: The amount Prudential purchased in LIMAC Series B bonds in 1991.

Sources:

• "Prudential Insurance Helps Make Affordable Housing a Reality." Business Wire. July 13, 1995
• "Local Initiatives Managed Assets Corporation (LIMAC)." Local Initiatives Support Corporation (LISC)
• "The Prudential Insurance Company of America." Prudential Insurance