Cleveland’s renters are among the most cost-burdened in the US. Last year, Cleveland Mayor Justin Bibb and LISC created a fund to finance housing for struggling middle-income renters and buyers, seeded with $18 million from the city. KeyBank and Fifth Third Bank later committed an additional $25 million combined.
A new $10 million allocation from Huntington Bank brings the Cleveland housing fund’s total raised to $53 million, more than halfway toward its target of $100 million.
“As a community, we are only able to fully thrive when all residents have access to safe, affordable housing,” said Huntington Bank’s Jay Turakhia. The Ohio-based regional bank is also backing Warner & Swasey, a $64 million affordable housing and commercial project that broke ground in Cleveland earlier this month.
“We are investing in neighborhoods across the city in ways that strengthen our communities and invigorate our economy,” said Kandis Williams, who heads LISC’s Cleveland office.
Affordable housing
The Cleveland housing fund aims to create and preserve up to 3,000 new rental units for seniors and families earning less than 80% of the city’s area median income – and turn at least 100 of those renters into homeowners (see, “LISC’s fund gives renters a chance to become homeowners in Cleveland”).
The fund provides loans and equity-like financing of $1 million and $5 million for small- and mid-sized affordable housing developments. The fund’s portfolio includes a $2 million loan to CHN Housing Partners, which is developing 55 lease-to-own single-family homes on vacant land in East Cleveland.
In Cleveland’s Glenville neighborhood, the fund backed the development of Garrett Square Senior Apartments’ 49 affordable homes for aging renters priced out by market-rate rents.
