Cleveland Housing Investment Fund Launches with Initial $38M Commitment to Support Equitable, Affordable Housing

10.01.2024 - Press Releases

Fund focused on underrepresented communities; seeded with $18M commitment from the City of Cleveland and $20M commitment from KeyBank

Tuesday, October 1, 2024 — Cleveland — LISC Fund Management, LLC (LFM) and partners are pleased to announce the launch of the Cleveland Housing Investment Fund (CHIF), made possible by a transformative $18 million grant commitment from the City of Cleveland and a $20 million planned investment from KeyBank. The legislation required for the City to provide financing to the CHIF was passed yesterday evening by Cleveland City Council.

The significant commitments from the City and KeyBank aim to address systemic inequality and discrimination by creating inclusive, affordable housing for Clevelanders. This public-private partnership seeks to invest $100 million in resilient neighborhoods with a focus on serving underrepresented communities and stimulating economic growth.

The $18 million grant commitment from the City of Cleveland serves as the cornerstone for the CHIF, a collaborative initiative launched by the City, KeyBank, and the Cleveland office of Local Initiatives Support Corporation (LISC). The primary objective of the CHIF is to cultivate vibrant and resilient neighborhoods within the City of Cleveland through the development of mixed-income rental housing and homeownership opportunities. The CHIF will provide debt and equity-like funding to neighborhood-scale housing development with a focus on affordability, developers who have historically been excluded from capital markets, and neighborhood impact. Through this strategy, the CHIF aims to create pathways for wealth generation.

Urgency drives this initiative in Greater Cleveland, where rents are rising at a faster rate than most United States metro areas, and demand has created a pressing need to build more affordable housing for low-income, working-class, and middle-class residents.

“The availability of affordable, quality housing is an intractable challenge that we need strong collaboration to solve. 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,” said Mayor Justin M. Bibb. “Establishing the CHIF as a framework for this effort is a vital step towards tackling the housing challenges Clevelanders face, and I am grateful to the partners for their support.”

The City's financial commitment to CHIF is further bolstered by a $20 million commitment from KeyBank Community Development Financial Institution Lending and Investment group (KeyBank CDFI), a division of KeyBank Community Development Lending and Investment. KeyBank CDFI delivers investments, loans and banking products & services to mission-driven CDFI partners that help expand access to the economic mainstream for low-income families and communities.

“Our $20 million commitment from our CDFI team in the Cleveland Housing Investment Fund underscores our commitment to affordable housing solutions that transform communities, providing families with safe places to live and grow,” said Brian Maddox, National Team Leader for KeyBank CDFI Lending and Investment. We are proud to partner with LISC and the City of Cleveland to help bring affordable housing, opportunities and change to neighborhoods across Cleveland.”

The CHIF is managed by LFM, a wholly owned subsidiary of national nonprofit, LISC, in close collaboration with LISC’s Cleveland office (LISC Cleveland). LFM manages mission focused investment funds at a national and local level to include similar affordable housing funds in other cities across the country, including Charlotte, Detroit, Dallas, and the Bay Area. The City’s decision to partner with LISC was driven by LISC’s impressive track record in community development, affordable housing financing, and collaboration with local governments to foster diverse housing opportunities.

“The affordable housing crisis is top of mind for leaders across the country and especially at LISC,” said LFM Interim President, Tiffany Durr. “The public-private partnership in Cleveland demonstrates what is possible when we collaborate and use our expertise to leverage significant resources to expand access to affordable housing for all. LISC values its impactful partnership with the City of Cleveland and KeyBank and looks forward to continuing to work together to advance equity and opportunity in the communities our organizations serve.”

Kandis Williams, Executive Director of LISC Cleveland, highlighted LISC's longstanding dedication to the Cleveland community. "Since opening our first office here in 1981, LISC has remained steadfast in investing in the prosperity of Cleveland neighborhoods," said Williams. "Through our comprehensive programs and initiatives, we have supported local organizations and catalyzed positive change in the areas of affordable housing, economic development, and financial stability. The CHIF is just one more tool we eagerly anticipate leveraging for the benefit of Clevelanders."

Following yesterday’s passage, CHIF will seek corporate and philanthropic investments, work to open an application portal for projects to apply for financing, and begin making affordable housing investments.

“We are proud to support the Cleveland Housing Investment Fund and look forward to playing a role in this important work,” said City Council President Blaine A. Griffin. “City Council hears from residents every day about the need for affordable housing and additional investment in our neighborhoods, particularly in those areas that have been historically underserved.”  

The Cleveland Housing Investment Fund represents a landmark opportunity to address housing inequities and promote shared prosperity in Cleveland for generations to come. Additional information and guidance for developers seeking financing will be provided soon.

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About the City of Cleveland

The City of Cleveland is committed to putting people and neighborhoods first, working to deliver high-quality city services and leading bold change. The City is focused on building a stronger and safer Cleveland and modernizing City Hall to improve outcomes for residents, businesses and visitors. To learn more about the City of Cleveland, visit clevelandohio.gov, X (formerly Twitter) at @CityofCleveland or Facebook at facebook.com/cityofcleveland. 

About Cleveland City Council

Cleveland City Council is comprised of seventeen members who are each elected to a 4-year term. A member serves about 25,000 people in their respective ward. Each member serves on one or more committees that discuss and vote on legislation. In 2023, City Council passed more than 1,400 ordinances related to safety, services, economic development, and other quality of life issues. Learn more about Cleveland City Council at clevelandcitycouncil.org. Follow City Council on social media at facebook.com/clecitycouncil, x.com/clecitycouncil, instagram.com/clecitycouncil.

About KeyBank Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing and community development capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 11 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.

About Local Initiatives Support Corporation (LISC) and LISC Fund Management, LLC (LFM)

LISC is one of the country's largest community development organizations, helping forge vibrant, resilient communities across America. LISC works with residents and partners to close systemic gaps in health, wealth, and opportunity and advance racial equity so that people and places can thrive. Since its founding in 1979, LISC has invested $32 billion to create more than 506,000 affordable homes and apartments, develop 82.5 million square feet of retail, community, and educational space, and help tens of thousands of people find employment and improve their finances.

For more, visit www.lisc.org and www.lisc.org/cleveland

The investment pools sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed by LFM, which is a wholly owned subsidiary of LISC. LFM is an investment adviser registered with the United States Securities and Exchange Commission.  LFM currently manages $865 million assets under management through 11 national and place-based mission-driven investments funds across the country.

To learn more about LFM, please visit https://www.liscstrategicinvestments.org/