Cleveland launches huge affordable housing fund
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Illustration: Aïda Amer/Axios
The city of Cleveland has launched what could be a major initiative to fight housing inequity.
Why it matters: Project leaders for the new Cleveland Housing Investment Fund (CHIF) hope it will spur the construction of 2,500-3,000 new units by this winter.
State of play: The city ponied up $18 million last week for the new program, with the goal of attracting $82 million more in private funding for affordable housing in underserved communities.
- KeyBank has already contributed $20 million to the fund.
- This money will provide financing for developers building affordable rental housing and single-family homes for low-income and working-class Clevelanders.
What they're saying: "The availability of affordable, quality housing is an intractable challenge that we need strong collaboration to solve," Mayor Justin Bibb said in a statement.
- "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."
The big picture: Affordable housing is one of the most persistent issues mentioned by constituents, per City Council President Blaine Griffin.
- The complaints are not just anecdotal. Rents have risen in Cleveland faster than the national average as demand has far outpaced supply here.
By the numbers: The median rent for a one-bedroom apartment rose 16% last year to $1,270.
Zoom out: The CHIF will be managed by the Cleveland office of the Local Initiatives Support Corporation (LISC), a national nonprofit that has managed similar affordable housing funds in Detroit and elsewhere.
What's next: Project leaders will now seek corporate and philanthropic investments to supplement the city's and KeyBank's contributions, and will soon open an application portal for projects to apply for financing.