In what's being hailed as a significant leap for affordable housing in Cleveland, the city's Housing Investment Fund, CHIF, has officially sealed deals on its initial investments. The focus is on the Parkside Homes and Walton Apartments developments, both aimed at fostering long-term affordability and enhancing neighborhood vitality. This news comes on the heels of CHIF's announcement in March, where the fund set an ambitious goal of raising $100 million dedicated to addressing the city's dire need for affordable housing units.
The LISC Cleveland branch disclosed that the Parkside Homes initiative, located on Cleveland's east side, is to provide a lease-purchase program comprising 55 homes. Additionally, Walton Apartments, a new 52-unit housing project catered to older adults, is set to rise in the Clark-Fulton neighborhood. Each project is designed to aid specific demographics, with Parkside Homes offering a pathway to homeownership, and Walton Apartments aiming to allow seniors to age in place with dignity and access to essential services. "Today, CHIF moves from promise to progress," LISC Cleveland Executive Director Kandis Williams told City of Cleveland's news publication, emphasizing the actionable steps being undertaken to bridge financing gaps and bolster housing solutions.
Mayor Justin Bibb highlighted CHIF as a catalyst for nurturing a city that is inclusive of all residents, emphasizing the collaborative nature of the fund, which amalgamates municipal support with private and philanthropic resources. The fund emerged from a partnership involving an $18 million City of Cleveland grant, a $20 million anchor investment from KeyBank, and is managed by LISC Fund Management, LLC. It seeks to forge ahead with small to mid-sized housing projects that often find it challenging to secure capital.
Apart from targeting long-term affordability, CHIF also aims to construct 2,500 to 3,000 homes across the city, including a minimum of 100 homes for sale, specifically serving residents earning below 80% of the area median income (AMI). "Parkside proves what’s possible when we match flexible capital with a proven lease-purchase model," CHN Housing Partners President & CEO Kevin Nowak conveyed in a statement to the City of Cleveland's news publication. These initial investments highlight the push toward not just creating homes but establishing communities where residents can look forward to thriving.
Amidst concerns over soaring rents and a stark deficit in homes affordable to low-income residents – a situation exacerbated by a 10.6% rent hike in 2024, according to Crain's Cleveland – CHIF stands as a potentially transformative tool. Celia Smoot, the National Team Leader of Fund Investments for KeyBank, underscored the bank's pride in being a foundational investor: "Affordable housing is foundational to economic mobility and neighborhood stability," she noted, as reported by the City of Cleveland's news publication. CHIF's role is seen as a cornerstone in Cleveland's leap towards an economically stronger future, with these first investments marking the beginning of a promising chapter for affordable housing.
