Opportunity Investment Fund Will Support Creation and Preservation of Affordable Housing in High-Cost and Gentrifying Markets Across Chicago
CHICAGO—(ENEWSPF)—June 21, 2018
By: Rosemary Piser
Mayor Rahm Emanuel and the Community Investment Corporation (CIC) announced today the Chicago Opportunity Investment Fund, a new initiative designed to create and preserve affordable rental housing across Chicago. The $30 million fund will provide low-cost financing to developers purchasing existing multifamily buildings if they guarantee affordable units in their properties for the next fifteen years.
The fund will focus investments in strong markets, where the cost of acquiring and preserving affordable housing is often prohibitive. The initiative is intended to expand access to neighborhoods where rental costs are continually rising for low income residents and families. The Community Investment Corporation has designed a streamlined model that catalyzes support from government, private lenders and social impact investors. The City of Chicago is providing $5 million to leverage $25 million in private and other investment for the fund.
At the announcement Mayor Emanuel said, “Every resident of Chicago deserves a great place to call home. When the public sector, private sector and non-profits work together we can create stronger communities and make affordable choices available for all Chicagoans.”
CIC President & CEO John G. Markowski added, “By providing developers with low cost equity, the Opportunity Investment Fund will quickly and efficiently create affordable units in strong markets.”
“MB is proud to support the expansion of affordable housing options in Chicago,” Mitch Feiger, President and CEO MB Financial, Inc., said. “Our commitment to investing in and building strong and vibrant communities where we live and work is fundamental to our mission.”
CIBC Bank USA, BMO Harris Bank, Byline Bank and TCF Bank assisted in development of the structure of the fund, and are considering investments in it. The Illinois Housing Development Authority is also considering committing resources and $3 million of support from the U.S. Department of Treasury’s Capital Magnet Fund.
The City’s contribution will be supported by funding from the Affordable Housing Opportunity Fund, which receives fees paid by developers that are subject to the City’s Affordable Requirements Ordinance.