Cleveland's $100M push for affordable housing is underway
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Illustration: Aïda Amer/Axios
Cleveland can't wait for affordable housing.
State of play: That was the message Tuesday, as Mayor Justin Bibb joined officials from KeyBank and the Cleveland office of the Local Initiatives Support Corporation (LISC Cleveland) in unveiling new details of an affordable housing program to combat the local housing crisis.
- The Cleveland Housing Investment Fund (CHIF) will provide financing for developers who are constructing or rehabbing homes for low- and moderate-income residents.
Why it matters: Last year, our market saw the biggest year-over-year rent increase among the country's 50 most-populated metros, with average rents up 10.6%, according to Redfin.
- That followed the median rent for a one-bedroom apartment rising in 2023 by 16%, to $1,270.
By the numbers: With an $18 million contribution from the city and $20 million from KeyBank, the public-private partnership is hoping to raise $100 million total to create 2,500-3,000 affordable units.
- As of Wednesday, a city spokesperson told Axios, no new private CHIF contributions had been finalized.
What they're saying: "It's like a down payment assistance program for developers," said developer Jermaine Brooks during Tuesday's event at City Hall.
Reality check: CHIF will invest in "flexible term debt" to help developers close the gap on their financing needs.
- That typically means low-interest loans.
Between the lines: Presenters stressed that one of CHIF's main goals will be to support "emerging developers" and developers of color, who will receive guidance and technical assistance as they seek funding.
- LISC Cleveland plans to meet monthly with the City Council or the administration to ensure the fund is meeting its community benefits goals.
What's next: LISC will host an informational session for developers interested in CHIF funds on April 10.