Real Returns - CIC's Investor Newsletter

We moved! Same building, new suite: CIC is now located at 222 South Riverside Plaza, Suite 380.

September 2017

Real Returns: CIC's Investor Newsletter

A Community Reinvestment Act for Today's World

CIC recently joined industry partners and the National Association of Affordable Housing Lenders (NAAHL) in a meeting with the U.S. Department of Treasury to share recommendations on the future of the Community Reinvestment Act (CRA), which was originally enacted in 1977.

The Treasury Department is undertaking a review of CRA intended to increase its effectiveness while reducing administrative burdens. NAAHL is a national alliance of banks, CDFIs, and other private capital providers working in affordable housing and inclusive neighborhood revitalization.

NAAHL board member and CIC President Jack Markowski pointed out to Treasury officials that both communities and banks would benefit if CRA recognition for affordable rental housing were made more clear, consistent, and predictable, especially for unsubsidized affordable rental properties, which comprise 80% of affordable rental housing nationwide.

New Public and Private Investments Tackle Jobs, Violence, and Housing

Historical disinvestment, a lack of jobs, and a shrinking supply of quality affordable housing all continue to stall neighborhood recovery in many Chicago communities. Earlier this month, CIC joined the City of Chicago, the Chicago Community Loan Fund (CCLF), and other partners to announce the City's new $6 million initiative to address these issues - the Chicago Neighborhood Rebuild Training Pilot Program.

Through this pilot program, supported by MB Financial and Ru sh University Medica l Center, 50 vacant homes located in the Garfield Park, Humboldt Park, and Englewood communities will be acquired and rehabbed. The program will also provide opportunities for transitional jobs and training for at-risk youths and ex-offenders.

As a program partner, CIC will assist in property acquisition efforts and identify a pipeline of properties available for development.

CIC also recently participated in a community roundtable hosted by JP Morgan Chase to discuss the institution's new $40 million initiative in Chicago neighborhoods. Projects funded under this program will address a range of issues, including poverty, violence prevention, job training, economic development, financial capability, and affordable housing.

CIC's Jack Markowski joined CCLF's Calvin Holmes, Deputy Mayor Andrea Zopp, 27th Ward Alderman Walter Burnett, Jr., 20th Ward Alderman Willie Cochran, MB Financial Bank President Mark Hoppe, and others to announce the Chicago Neighborhood Rebuild Training pilot program.

Preserving and Providing Affordability in Strong Markets

In addition to bringing new investment into challenged housing markets, CIC also recognizes the need for programs and policies that expand the inventory of affordable units in high-cost markets.

CIC was recently named a recipient of a $200,000 award from JP Morgan Chase, which will support pilot projects for the Opportunity Investment Fund. Developed by The Preservation Compact and CIC, the Opportunity Investment Fund is being created to encourage the development and preservation of affordable units in strong markets.

The fund will provide low-cost mezzanine debt to developers who purchase existing, functioning rental buildings in strong markets, and maintain at least 20% of those units at affordable rent levels for 15 years.

In another effort to provide affordable housing in strong markets, Mayor Emanuel recently proposed amendments to the City of Chicago's Affordable Requirements Ordinance (ARO). Introduced to City Council on September 6, the two proposed amendments establish a three-year pilot to increase affordability requirements in two target areas on the near west side and along Milwaukee Avenue.

At a September 25 meeting of the Chicago City Council Committee on Housing and Real Estate, CIC President Jack Markowski testified in support of the ARO amendments, explaining that the proposed pilot "continues in the spirit of previous ARO ordinances and amendments, looking to harness private market activity in strong areas to generate more resources for affordable housing and community development. This is key to creating and preserving healthy neighborhoods throughout Chicago."

View CIC's letter of support for the ARO amendments here.

In the News: Chicago's Woodlawn - A Success Story in the Making

Be sure to c heck out a recent article in Multi-Housing News illustrating tremendous progress achieved in Woodlawn.

Significant work in the community by the Preservation of Affordable Housing (POAH) is highlighted, including Renew Woodlawn and the unique and effective partnership between POAH, Neighborhood Housing Services of Chicago (NHS) and CIC. Read the full article here .

About CIC

Since 1984, CIC has provided more than $1.2 billion to acquire, rehab and preserve 58,000 units of affordable housing for more than 145,000 metro Chicago residents. A recipient of the MacArthur Award for Creative and Effective Institutions, CIC programs also include Energy Savers, the Troubled Buildings Initiative, The Preservation Compact and Property Management Training. For more information, visit cicchicago.com .