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APA Spotlight: A Look at Childcare Policy with the Low Income Investment Fund (LIIF)

By Rachel Hammond (MPP Candidate ‘21)

Prior to the onset of COVID-19, 51% of Americans lived in a child care desert, or a census tract that has fewer than one licensed child care spot for every three children. Between April and October 2020, the child care industry shrunk by 17% with over 166,000 jobs lost. The COVID-19 pandemic has shed light on the essential role child care providers play across the country, and ensuring parents have access to care for their children will be critical as they return to work. 

Throughout my studies at GSPP, I have been focused on policies impacting low-income families with young children. A child’s first five years of life are the most important time for their development, and access to high quality early care and education (ECE) is essential in supporting this. Access to ECE also supports economic stability for families by making it easier for parents to balance work with raising a family. Unfortunately, too many families do not have access to the care their children need.

That is why I was thrilled to have the opportunity to complete my APA with the Low Income Investment Fund (LIIF). LIIF is a Community Development Financial Institution (CDFI) headquartered in San Francisco that operates under the mission and vision:

“Everyone in the United States should benefit from living in a community of opportunity, equity and well-being. LIIF mobilizes capital and partners to achieve this vision for people and communities.” - LIIF’s mission statement

For my project, I have been investigating the co-location of ECE in affordable housing developments. In practice, this usually means the ECE facility is included in the bottom floor retail space of a mixed use apartment building. LIIF hopes to see more co-location projects across the country with the goals of increasing the supply of ECE and making it easier for low income families to access child care. I am specifically researching policy options targeted at incentivizing housing developers to undertake such projects.

The project has been an incredible learning experience. To start off, LIIF connected me with affordable housing developers in their network. They spoke of co-location projects they had completed, as well as some of the challenges they face while looking to do more. I then moved on to speaking with folks at various state housing finance agencies and other thought leaders in the space.

I have enjoyed working with the LIIF team. Each person I speak with has a wealth of knowledge on ECE needs, facility construction, and financing considerations. They have allowed me to take the reins on the project while also providing constructive feedback throughout the entire process. I have appreciated their focus on equity and their advocacy for policies that will best serve families and ECE providers.  

The project will culminate with my presentation to the National Children’s Facilities Network, which LIIF co-chairs. I plan to share a slate of recommendations that policy makers can use at the local, state, and federal levels to encourage the completion of more co-location projects going forward.   

Rachel Hammond is a second year MPP student at the Goldman School of Public Policy. Her main policy interests are children, families, and the social safety net. She currently works for First 5 Alameda County where she helps run their COVID-19 relief efforts. Rachel received a B.S in Business Administration and a B.A. in Economics from the University of North Carolina at Chapel Hill.