Neighborhood Housing Services (NHS) of Chicago and Community Housing Capital (CHC) announced a new $1 million investment to expand affordable housing access throughout the Chicagoland area. The deal is part of a $12 million pilot program made possible by a loan from JPMorgan Chase. With the $12 million in funding, CHC is launching an innovative Warehouse Line of Credit (WLOC) Pilot Program designed to assist affordable housing-focused CDFIs in the NeighborWorks America network originate and hold affordable and workforce mortgages until they can be sold to a third-party investor. By addressing the liquidity constraints for CDFIs offering single-family mortgages, the WLOC program expands lending capacity, supports faster housing development, and ensures community-based organizations can continue providing critical financing to families in need and on time. Through the pilot, CHC will make the Warehouse Line of Credit available to qualifying nonprofit affordable housing organizations nationwide. The program will provide liquidity to fund new residential mortgages for low-and-moderate-income and workforce buyers, with a majority of the purchasers between 80 percent and 120 percent of Area Media Income (AMI). Under the line of credit, CHC will fund the mortgages until they are sold to investors such as Fannie Mae, Freddie Mac, and regional banks, among others.

Pictured (L-R) Cindy Holler, President and CEO, Community Housing Capital, Joanna Trotter, Executive Director and Senior Program Officer, Global Philanthropy, Neighborhood Development, JPMorganChase, Janice Crawford, Chief Credit Officer, NHS of Chicago, Anthony E. Simpkins, President and CEO, NHS of Chicago. (Photo: NHS of Chicago)