Cleveland.com: $38 million from Cleveland and KeyBank earmarked for newly established affordable housing fund

Megan Sims, cleveland.com

CLEVELAND, Ohio - Some $38 million has been earmarked for a new program aimed at making housing more affordable in the city of Cleveland.

City Council on Monday passed legislation clearing the way for the city to help pay for the newly launched Cleveland Housing Investment Fund.

The fund was created to address “systemic inequality and discrimination” by developing inclusive, mixed-income affordable rental housing and home ownership opportunities.

The city said in a news release Tuesday that it has already made an $18 million grant commitment to the fund with KeyBank planning to invest $20 million. It also said that the “public-private partnership” aimed to invest $100 million in “resilient” neighborhoods to serve underrepresented communities to stimulate economic growth.

In a statement, Mayor Justin Bibb said the need for affordable and quality housing would be resolved with “strong collaboration.”

“It is critical that we drive private investment in our neighborhoods that have not seen the same level of investment as other areas of the city,” he said.

“Establishing the CHIF as a framework for this effort is a vital step towards tackling the housing challenges Clevelanders face, and I am grateful to the partners for their support.”

The fund will be managed Local Initiative Support Corporation Fund Management, a wholly owned subsidiary of the national nonprofit LISC, which has had a Cleveland office since 1981, the city said.

The subsidiary also manages “mission-focused” investment funds at the national and local level, which includes cities like Charlotte, North Carolina, Detroit, Dallas and the Bay Area.

The city added that additional information and guidance for developers seeking financing would be provided at a later date.

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