Emanuel, Madigan Announce Program to Redevelop Vacant Buildings

Mayor Rahm Emanuel, Illinois Attorney General Lisa Madigan and civic leaders announced the creation of a new, $26 million loan pool that will make financing available to rehab and preserve groups of vacant, one-to-four-unit buildings as affordable rental housing. Eleven private lending institutions contributed to the pool, which will be administered by Community Investment Corporation (CIC), a not-for-profit rehab lender specializing in multifamily apartment buildings.

The “Small Apartment Building Rental Redevelopment Program” will provide 10-year loans for projects involving a minimum of nine housing units. The program’s creation by CIC is among the goals of the City of Chicago’s “Five-Year Housing Plan,” which was approved in February by City Council. The plan prioritizes the need for financial institutions to work with local non-profits to expand funding commitments for neighborhood-based redevelopment efforts.

Approximately 200 properties containing 400 units are expected to be rehabilitated and financed through the program, primarily within concentrated low and moderate- income areas, where foreclosure rates are often more than twice the citywide average. Lenders participating in the loan pool include PNC Bank, Northern Trust, BMO Harris, Urban Partnership Bank, First Savings Bank of Hegewisch, Leaders Bank, First Eagle Bank, Wintrust, Northbrook Bank, Lake Forest Bank, Village Bank, and North Shore Community Bank. For more information on the 1-4 Unit Rental Redevelopment Loan Program, call CIC at 312-258-0070.

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