Chicago Mayor Lori Lightfoot announced a $330 million lending commitment from several local banks into the Community Investment Corporation to provide affordable housing on the South and West Sides on Thursday.
The $330 million in lending investment funds is being provided by 40 area banks and will be used to rehab 7,000 units of affordable rental housing across 400 buildings over the next five years, according to a press release.
“As we continue to weather the storm of COVID-19, it's our responsibility to make sure that our residents, especially those on our South and West Sides, have a place to call home and find shelter," said Lightfoot. "Partnerships with and investments from organizations like CIC and its investor banks are just what we need to ensure our communities have access to the safe, affordable housing they need now more than ever.”
CIC is a non-profit mortgage lender that helps provide financing to purchase and rehab multi-family apartments, according to the company’s website.
The lending commitment will be aligned alongside Lightfoot’s ‘INVEST South/West’ initiative that aims to provide development in neighborhoods that have experienced disinvestment, according to a press release.
“This $330 million commitment to CIC represents a major effort to counter the historic disinvestment in many Chicago communities,” said CIC Chicago President Jack Markowski. “It will preserve our affordable housing stock, invest in communities that are most in need, and build and strengthen the local businesses who own and operate the buildings.”
The goal of the investment is to not only create affordable rental opportunities but also increase access to credit for small business owners on the South and West Sides, according to the release.
“The majority of CIC’s borrowers are women and people of color, so when they invest in local entrepreneurs, not only do they produce affordable housing, they also build wealth for populations long denied that opportunity,” said DOH Commissioner Marisa Novara.