The new $26 million loan pool will make financing available to rehab and preserve groups of one- to four- unit buildings as affordable rental housing. Capitalized by eleven bank investors, a program-related investment by the MacArthur Foundation, and a grant from the Attorney General’s foreclosure settlement funds, the pool will be administered by Community Investment Corporation (CIC).
The loan pool was conceived by The Preservation Compact’s working group tasked with developing strategies to redevelop Cook County’s small rental properties.
“This new loan pool targets the redevelopment of one- to four-unit buildings, which represent nearly 50 percent of all rental units in Chicago and are too often under-resourced,” Mayor Emanuel said. “Through strong collaboration between the City, businesses, and non-profits, like CIC, this financing will help small and mid-sized developers make a strong investment in our communities, while most importantly providing affordable housing options for Chicagoans.”
“This funding is a down payment on the future for communities hit hardest by the foreclosure crisis,” said Attorney General Madigan, whose office allotted $2 million toward the loan pool from relief secured in the national foreclosure settlement. “Investing in affordable housing will help stabilize these neighborhoods and help families move forward on the road to recovery.”
“Supporting private investment in small rental properties that provide housing options to many Chicagoans is one of the most effective ways to maintain and grow our affordable housing stock,” said MacArthur President Robert Gallucci. “This fund will help ensure that entrepreneurs in Chicago can continue and even increase their efforts to support the stabilization of city neighborhoods as well as the region’s housing recovery.”
For more information about the 1-4 Unit Rental Redevelopment Loan Program, call CIC at 312-258-0070 or visit www.cicchicago.com.