CHICAGO—Officials from the Community Investment Corp. say they have begun raising $200 million which will finance the acquisition and rehab of affordable rental housing in Chicago over the next five years.
The Chicago-based CIC typically raises funds from an investor base of Chicago area banks. It has already received preliminary commitments from Chase, Northern Trust, BMO Harris Bank, PNC Bank, the Wintrust Financial Corp., the PrivateBank and MB Financial Bank. David Dykstra of Wintrust leads its campaign committee and they will continue to secure additional commitments.
CIC will use the proceeds to expand its multifamily loan program, provide credit to underserved communities and finance the acquisition and rehab of 7,500 affordable rental units.
“CIC’s Multifamily Loan Program is a unique effort created by Chicago financial institutions that recognized the need to support low and moderate income communities,” says CIC president Jack Markowski. “The new fund will give CIC predictable access to the capital it needs to offer property owners competitive terms for acquiring and rehabbing affordable rental housing, while also providing reasonable returns to investors.”
Chase has participated in CIC programs for about 30 years and doing so “has helped us serve low and moderate income communities and preserve affordable housing in the Chicago region,” says Priscilla Almodovar, head of Chase’s community development banking.
CIC was founded in 1984, and has provided more than $1.2 billion to acquire, rehab and preserve 55,000 units of affordable housing for more than 130,000 metro area residents.