Healthy Food Financing Initiatives

IHFAC Mission Statement: “The Indiana Healthy Food Access Coalition is comprised of several diverse community organizations, united in the shared vision of ensuring that every Indiana resident has access to healthy, affordable food.”

IHFAC Partners AARP Indiana Minority Health Coalition Indiana State Alliance of YMCAs Top 10 by 2025 Coalition American Heart Association Feeding Indiana’s Hungry Indy Hunger Network Indiana Healthy Weight Initiative Hoosier Farmer’s Market Association Purdue Extension Green Bean Delivery Evansville Area Food Council Accelerate Indiana Municipalities American Diabetes Association Health Visions Fort Wayne Memorial Hospital Foundation Indianapolis Urban League Marion County Healthy Department Health and Hospital Corporation of Marion County Food and Nutrition Policy Consultants, LLC Indiana Housing and Community Development Authority Indy Chamber Anthem Indiana Americorps VISTA Marshall County Neighborhood Center Indiana Hospital Association City of Indianapolis Lake Minority Health Coalition St. Joseph Minority Health Coalition El Centro Comunal Latino

Food Access Terminology

What is a food desert? A food desert is defined by the USDA as a low-income area in which a large share of residents has low-access to a supermarket or large grocery store. Low-access to a healthy food retail outlet is defined as more than 1 mile from a supermarket or large grocery store in urban areas and as more than 10 miles in rural areas. Source: United States Department of Agriculture: Access to Affordable and Nutritious Food, Food Deserts and Their Consequences: Report to Congress (2009).

Food deserts affect low-income communities all over the country.

The cost of obtaining food in a food desert is higher due to food prices at neighborhood stores and the cost of having to travel to shop at a grocery store or supermarket.

More food access terms Food Insecurity Food Environment In food deserts, residents often experience food insecurity. The USDA defines food insecurity as limited or uncertain availability of nutritionally adequate and safe foods. According to Johns Hopkins University, a food environment includes homes, stores, restaurants, community gardens, soup kitchens, food banks, and other physical settings where the cost and availability of food influence what people eat. Sources: United States Department of Agriculture: Access to Affordable and Nutritious Food, Food Deserts and Their Consequences: Report to Congress (2009). Johns Hopkins School of Public Health: Center for a Livable Future. [online]: http://www.jhsph.edu/research/centers-and-institutions/teaching-the-food-system/curriculum/_pdf/Food_Environments-Vocabulary.pdf

Healthy Food Financing A term that encompasses a variety of state and local policies and programs that provide capital to expand communities’ access to healthy foods, build grocery stores and revitalize economies

HFFI does NOT apply only to brick and mortar grocery stores HFFI does NOT apply only to brick and mortar grocery stores! When we use the terms “grocery store” or “supermarket,” here’s what we mean…. FIRST, HFFI projects MUST be located in an underserved community and primarily serve low income areas and moderate income areas The following projects are eligible for financing: Construction of new grocery stores Grocery store, food bank, or food pantry renovations, expansions, and infrastructure upgrades that improve the availability and quality of fresh produce and other healthy foods Farmer’s markets, farm stands and markets, community supported agriculture programs, food cooperatives, mobile markets, and delivery and distribution projects that improve the availability and quality of fresh produce and other healthy foods Other projects, including outreach programs, that improve the availability and quality of fresh produce and other healthy foods

Addressing the need for healthy foods in underserved communities 29.7 million Americans across the United States live in food deserts, according to the USDA Communities that have no or distant grocery stores, or have an imbalance of healthy food options, will likely have increased premature death and chronic health conditions Food deserts are most commonly found in communities of color and low-income areas – studies have found that wealthy districts have three times as many supermarkets as poor ones do, and white neighborhoods contain an average of four times as many supermarkets as predominantly African-American communities Sources: United States Department of Agriculture: Access to Affordable and Nutritious Food, Food Deserts and Their Consequences: Report to Congress (2009). Mari Gallagher Research & Consulting Group (2006). “Examining the Impact of Food Deserts on Public Health in Chicago.” [online]: http://www.marigallagher.com/site_media/dynamic/project_files/2_Chi-ForwExcecSumOnly.pdf Food Empowerment Project. [online]: http://www.foodispower.org/food-deserts/

Food Environments and Chronic Disease More research is needed to establish causal relationships between food access and health outcomes, BUT…. People who live near an abundance of fast-food restaurants and convenience stores compared to grocery stores and fresh produce vendors, have a significantly higher prevalence of obesity and diabetes Low-income people, minorities, and rural residents suffer the highest rates of preventable, diet-related diseases linked to insufficient consumption of healthy foods Sources: Designed for Disease: The Link Between Local Food Environments and Obesity and Diabetes. California Center for Public Health Advocacy, PolicyLink, and the UCLA Center for Health Policy Research. April 2008. Access to Healthy Foods in Low-Income Neighborhoods: Opportunities for Public Policy. Rudd Center for Food Policy and Obesity, Yale University. 2008.

Indianapolis ranks worst in the nation for food deserts. According to Walk Score, Indianapolis ranks last in the nation for the percentage of people who have easy access to food.   Half of the Indianapolis east side is designated a food desert by the USDA.  

We need a statewide program to bring food retailers to our rural and urban communities, and to provide more access to fruits and vegetables, low-fat dairy, whole grains, seafood, and lean meats.

Advocate for Healthy Food Financing Initiatives Fund Establish a statewide program to increase the availability of fresh and nutritious food, including fruits and vegetables, in underserved communities by providing financing for retailers and non-profit organizations to open, renovate, or expand food establishments. Public private partnership Grants and loans Flexible, customized financing designed to meet the credit needs of retailers Proven model to address the need for better healthy food access in underserved communities

HFFI programs can assist local business owners to open, expand, and improve grocery stores and corner stores in neighborhoods that need food and jobs the most. Funding can also be used for other projects including outreach programs, farmers’ markets, community supported agriculture programs, mobile markets, and delivery/distribution projects that improve the availability and quality of fresh produce and other healthy foods. Every Hoosier should have easy access to affordable, nutritious food and healthy food financing programs can help!

Healthy Food Financing Program Model Fresh Food Retail Projects in Underserved Communities Supermarkets Small grocery stores Co-ops, farmers markets, and other “non-traditional” formats Community Development Financial Institution & Food Access Organization Raise private capital Provide financing Determine applicant eligibility Market program, advocate for community Government or Foundation Provide seed funding Oversee program implementation

Healthy Food Financing Initiative Implementation Process Grocer applies for financial incentives to build or expand store in a food desert. Food access organization screens for eligibility. CDFI provides customized financing to support store.

HFFI: A Model with a History of Success Pennsylvania – In 2004, Pennsylvania created the nation’s first statewide program to address the lack of fresh food availability in its communities: the Pennsylvania Fresh Food Financing Initiative (FFFI) The Reinvestment Fund, a CDFI, used the state’s $30 million capital to leverage an additional $146 million in other sources of public and private capital The Food Trust partnered with The Reinvestment Fund to co-administer the initiative. Since its launch, the initiative has approved nearly 90 new and expanded fresh food retail projects across the state for funding The Fresh Food Financing Initiative has created or retained over 5,000 jobs and increased access for an estimated 500,000 people

Healthy Food Financing Programs Across the Country Location Name of Program Types of Financing California California Fresh Works Fund Loans: Up to $8 million Grants: Up to $50,000 Colorado Colorado Fresh Food Financing Fund Loans: Up to $1.5 million per project Grants: $100,000 per project Illinois Illinois Fresh Food Fund Loans: Range from $250,000 to $1 million Grants: Only available to those who are also applying for a loan. The grant amount can be up to 10% of the loan amount, not to exceed $100,000 Louisiana New Orleans Fresh Food Retailer Initiative Loans: CDBG loans not to exceed $1 million Forgivable Loans: Up to $500,000 or 20% of total financing needs Mid South (Louisiana, Mississippi, Memphis) Mid South Healthy Food Initiative Loans and Forgivable Loans: financing packages vary

Michigan Good Food Fund (MGFF) Location Name of Program Types of Financing Michigan Michigan Good Food Fund (MGFF) Loans: Loans range from $5,000 to $6,000,000 Grants: Limited grant dollars that must be paired with loans New Jersey New Jersey Food Access Initiative Loans: Range in size from $200,000 to $4.5 million Grants: Range in size from $5,000 to $125,000 Recoverable Grants: Early-stage financing with no-interest loans New York New York Healthy Food & Healthy Communities Fund Loans: Range in size from $250,000 to $5 million Grants: Range in size from $5,000 to $500,000 for capital grants and $5,000 to $200,000 for predevelopment grants Ohio Healthy Food for Ohio program Loans: Up to $5 million and 10 years Forgivable Loans: Available up to 20% of funds provided by the HFFO program Grants: Up to $250,000

Pennsylvania Fresh Food Financing Initiative Location Name of Program Types of Financing Pennsylvania Pennsylvania Fresh Food Financing Initiative Loans: Ranged in size from $200,000 to $3.5 million Grants: Up to $250,000 per store and $750,000 in total for one operator Federal Healthy Food Financing Initiative Financing packages vary: HFFI dollars are given to Community Development Financial Institutions (CDFIs) and Community Development Corporations (CDCs) to provide one-time grants and loans to projects in their region

Where are we now? The Indiana Healthy Food Access Coalition meets monthly to discuss strategies and plan advocacy activities The Coalition hosted an Advocacy Summit during the summer of 2016 We hold town hall meetings periodically across the state to build grassroots support for HFFI – the next one will be in Michigan City on January 11th Legislation creating HFFI program has had broad support, but hasn’t been passed yet In October 2017, an interim study committee officially recommended that the state legislature address the issue of food deserts Non-budget year, so this year we are just hoping to pass legislation that creates the program and opens the fund People interested in supporting this issue should contact their lawmaker and ask them to support Healthy Food Financing Initiatives Third House Sessions across the state Healthy Food Access Day at the Statehouse sometime in February Visit our website! www.inhealthyfoodaccess.com

Get out your smartphone and text CARROT to 46839 Then click the link you receive to sign our online petition in support of Healthy Food Access initiatives! *After signing, you will receive periodic emails from the American Heart Association about this and other public policy initiatives. You may opt-out at any time.

Key Messages Nearly 30 million people in communities across America don’t have stores that offer healthy foods in their community. These same communities often struggle with high rates of unemployment and diet-related chronic disease. Improving access to healthy food through healthy food financing brings a triple benefit to communities: revitalized economy, job creation, and better health.

Questions? For more information about the Indiana Healthy Food Access Coalition, or to request advocacy materials, please contact Naima Gardner at : Naima.Gardner@heart.org