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City Launches Fund to Boost Affordable in Gentrifying Areas
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The Emanuel administration and the Community Investment Corporation have launched an initiative intended to encourage affordable housing in upmarket and gentrifying neighborhoods. The $30-million Chicago Opportunity Investment Fund will provide low-cost financing to developers purchasing existing multifamily buildings in high-priced areas, if they guarantee affordable units for the next 15 years.
The program is designed to attract both private and social impact investment, and allow investment in areas where typical subsidy models can’t compete. “By providing developers with low-cost equity, the Opportunity Investment Fund will quickly and efficiently create affordable units in strong markets,” said CIC president & CEO John G. Markowski.
MB Bank has contributed approximately $4 million to the fund, while CIBC, BMO Harris, Byline Bank and TCF Bank assisted in developing the fund’s structure. The Illinois Housing Development Authority is also considering committing resources; the city is providing $5 million.
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