Mayor Lightfoot Announces $330 Million Commitment for Affordable Housing in Chicago
The City of Chicago announced a $330 million lending commitment to acquire and rehabilitate 7,000 housing units on the city’s south and west sides. This commitment was joined by the Community Investment Corporation (CIC) and 40 banks. Mayor Lightfoot’s press release on the topic is copied below:
CHICAGO – Mayor Lori E. Lightfoot and Department of Housing (DOH) Commissioner Marisa Novara joined the Community Investment Corporation (CIC) today to announce a $330 million lending commitment from 40 banks for the acquisition and rehabilitation of 7,000 units of affordable rental housing on Chicago’s South and West Sides. This commitment by CIC and its investor banks is expected to finance affordable rental units in up to 400 buildings over the next five years. CIC will align their commitment with the Mayor’s INVEST South/West initiative to attract further private and philanthropic investment for equitable development and increased opportunities in neighborhoods that have experienced disinvestment for decades.
“As we continue to weather the storm of COVID-19, it’s our responsibility to make sure that our residents, especially those on our South and West Sides, have a place to call home and find shelter,” said Mayor Lightfoot. “Partnerships with and investments from organizations like CIC and its investor banks are just what we need to ensure our communities have access to the safe, affordable housing they need now more than ever. Securing these funds and the projects they enrich will ultimately build on our ongoing neighborhood improvement initiatives such as INVEST South/West, protect the residential infrastructure of our communities, and restore the vibrancy of our economy at the local level.”
The announcement was made at a CIC-financed courtyard building in the City’s South Shore neighborhood, a community where CIC has financed over $60 million to preserve 1,800 units over the past 10 years. The building is owned and operated by Anthony Oliver, who also owns 150 affordable rental units on Chicago’s South and West Sides, and represents the type of CIC borrower – local business people – who provides the vast majority of affordable housing in Chicago and throughout the country.
“This $330 million commitment to CIC represents a major effort to counter the historic disinvestment in many Chicago communities,” said CIC Chicago President Jack Markowski. “It will preserve our affordable housing stock, invest in communities that are most in need, and build and strengthen the local businesses who own and operate the buildings.”
Since 1984, CIC has provided $1.5 billion to rehab and preserve 63,000 units of affordable housing throughout Chicago. This new investment will not only create and preserve affordable rental opportunities but also increase access to credit for entrepreneurs and small business owners who are committed to neighborhood development on the South and West Sides.
“CIC has a deep knowledge of our neighborhoods and consistently supports the City’s small, community-based developers who are essential in creating and preserving affordable rental housing that our city desperately needs,” said DOH Commissioner Marisa Novara. “The majority of CIC’s borrowers are women and people of color, so when they invest in local entrepreneurs, not only do they produce affordable housing, they also build wealth for populations long denied that opportunity.”
Community Investment Corporation (CIC) is the leading source of financing for the acquisition, rehabilitation, and preservation of affordable rental housing in the Chicago area. The roster of CIC’s 40 investors includes 31 banks that are renewing their support for CIC as well as nine banks making investments for the first time. For more information about CIC and its affordable housing programs, visit www.cicchicago.com.
This announcement is part of Mayor Lightfoot’s commitment to bring equitable investment, resources and much-needed development in many of the city’s underserved neighborhoods. Last week, the Department of Planning and Development (DPD) announced a Request for Proposals (RFP) for the redevelopment of key, underutilized properties in three INVEST South/West neighborhoods: Auburn Gresham, Austin and Englewood. The projects will revitalize their respective neighborhoods with quality-of-life amenities, job and mixed-income housing projects that leverage local transit and advance long-established community goals. For more information about the RFPs and to submit a proposal visit, Chicago.gov/investsw.