July 2018
Real Returns: CIC's Investor Newsletter
In this month's news: The 2018 Neighborhood Forum; Mayor Emanuel announces new affordable housing fund with CIC, Politico FOCUS coverage of CIC's 1-4 unit work, and more. Read on!
POAH Awarded CIC's Inaugural Outstanding Community Partner Award at the 2018 Neighborhood Forum
On June 20, CIC and over 200 developers, brokers, lenders, and affordable housing practitioners gathered for CIC’s 4 th Annual Neighborhood Forum at the Reva and David Logan Center for the Arts in Woodlawn.

Investment Trends: Naturally Occurring Affordable Housing in Chicago explored the continued bifurcation between strong and weak Chicago neighborhood markets, and the importance that privately owned, unsubsidized rental housing plays in the affordable market.

The forum also featured the presentation of CIC’s inaugural Outstanding Community Partner Award to the Preservation of Affordable Housing (POAH) for its transformative work in the Woodlawn community.
Left to right: William Towns of Benefit Chicago; Nikkitta McCoy, D. Ann Conley, Kathleen Day, and Bill Eager of POAH; Jack Markowski of CIC. Photo by Gordon Walek.
Panelists discuss naturally occurring affordable housing in Chicago at CIC's 2018 Neighborhood Forum. Photo by Gordon Walek.
Mayor Emanuel Announces New Fund with CIC
Mayor Rahm Emmanuel recently announced the launch of the Opportunity Investment Fund (OIF) as a key pillar in the Mayor’s new affordable housing strategy.

Over the past two years, The Preservation Compact and CIC, in partnership with the City of Chicago and other government and private lender partners, have developed the new $30 million fund to create and preserve affordable units in strong housing markets. Initially supported by the JP Morgan Chase Foundation through pilot program funding, the Opportunity Investment Fund (OIF) provides low cost mezzanine debt for acquisition in strong markets and an alternative to heavily subsidized financing structures.

As reported by WBEZ , the fund will provide low-cost mezzanine debt to developers who purchase existing, functioning rental buildings in strong markets. In exchange, the developer must keep at least 20% of a building's units affordable for at least 15 years. CIC will serve as fund manager and program administrator. The OIF, along with other recently announced city housing initiatives, was also supported in a recent  Sun-Times editorial .

Studies have shown  that where a person lives plays a major role in the person’s health, economic well-being, and overall quality of life. The OIF will create more opportunities and choices for low and moderate income families looking to move into stronger markets in the Chicago region.

The City of Chicago will provide a proposed $5 million to leverage $25 million in private and other investment for the fund. MB has committed $4 million to the fund.

Developers interested in accessing OIF funds to purchase a multifamily property in a strong market can learn more about the program structure and current terms  here .
Here Comes the Neighborhood: Chicago CDFI Collaborative Showcased by Politico FOCUS
Politico FOCUS recently featured the work of the Chicago CDFI Collaborative as a new model for local investment.

JPMorgan Chase provided a $5 million grant for a collaboration among CIC, Chicago Community Loan Fund, and NHS Chicago to finance the acquisition and rehab of troubled 1-4 unit buildings in low and moderate income communities.

The article tells the story of Aaron Mallory, a CIC client living and working in Roseland, who purchased his first investment property with financing through the Collaborative.
Read the Politico FOCUS story  here.
Troubled Buildings Initiative Featured in HUD Case Study
HUD’s Office of Policy Development and Research featured the Troubled Building Initiative (TBI) as an innovative strategy to preserve affordable housing and help revitalize neighborhoods. TBI is a program administered on behalf of the City of Chicago by CIC and NHS of Chicago. Under TBI, multiple city agencies work together with CIC and NHS to move buildings from housing court to improved physical conditions and management rather than to abandonment and demolition.

In recognition of TBI’s contribution to affordable housing preservation, Chicago won the  2016 Robert C. Larson Workforce Housing Public Policy Award  from the Urban Land Institute’s Terwilliger Center for Housing.

Read HUD’s case study  here.
This Washington Park 24-unit rental building is just one of over 580 buildings recovered by CIC through the City of Chicago's Troubled Buildings Initiative.
More News From CIC
Here are just a few recent presentations and interviews by the CIC team:

  • Stacie Young, Director of The Preservation Compact at CIC, presented on strategies to preserve 1-4 unit properties at the National Press Club in Washington, DC during the National Association of Affordable Housing Lenders (NAAHL) Annual Policy Conference. CIC President and NAAHL Board Chair Jack Markowski opened the NAAHL Conference, and CIC Board Member Tony Smith (of PNC Bank) presented on lending to underserved homebuyers.

  • Jack Markowski was featured on WVON's Afternoons with Cliff Kelly to provide information on CIC and our activities on troubled buildings, property management, and other housing issues affecting Chicago residents.

Community Investment Corporation (CIC) is the leading source of financing for the acquisition, rehabilitation, and preservation of affordable rental housing in the Chicago area. Since 1984, CIC has provided more than $1.3 billion to acquire, rehab and preserve 59,000 units of affordable housing for more than 147,000 metro Chicago residents. 
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