CLEVELAND — City leaders in Cleveland are working to create up to 3,000 new affordable housing units, after launching the “Cleveland Housing Investment Fund,” or CHIF.

What You Need To Know

  • In a press conference Tuesday, city officials were joined by representatives from the Local Initiatives Support Corporation, or LISC, a national community development corporation that has launched similar funds in other parts of the country, including Detroit. 

  • The city of Cleveland has committed $18 million to CHIF, and Key Bank invested another $20 million, but the ultimate goal is to reach $100 million in investments for housing across the city.

  • The money will be used to create housing units for those earning low to moderate incomes, which city data indicates translates to individuals earning about $55,000 per year or less.

In a press conference Tuesday, city officials were joined by representatives from the Local Initiatives Support Corporation, or LISC, a national community development corporation that has launched similar funds in other parts of the country, including Detroit. 

The City of Cleveland has committed $18 million to CHIF, and Key Bank invested another $20 million, but the ultimate goal is to reach $100 million in investments for housing across the city. The money will be used to create housing units for those earning low to moderate incomes, which city data indicates translates to individuals earning about $55,000 per year or less.

The fund will support a diverse portfolio of development projects, including a minimum of 100 for-sale homes.

Cleveland Mayor Justin Bibb said investing in affordable housing could have a ripple effect on the local economy. 

“What's also exciting about this work is this work is going to prioritize investing in developers of color in our city as well, too,” Bibb said Tuesday. “So, this project is about housing. It's about creating real wealth in our neighborhoods and making sure that our residents get more than their fair share of investment in our city.”

Rising rent prices are a growing concern in many parts of our state, especially in Northeast Ohio.

A recent report by Redfin suggests rent prices in Cleveland are increasing at the fastest rate of the 50 most populated metro-areas in the country.

LISC Cleveland is hosting an informational session for developers who are interested in learning more about CHIF and how to get involved on April 10th.

While LISC Cleveland is continuing to fundraise toward their goal of $100 million for the fund, a spokesperson said they will soon begin partnerships with developers to start building with the $38 million in investments they have received so far.