Cleveland Launches $100M Affordable Housing Investment Fund
Cleveland Launches Major Affordable Housing Investment Fund
Mayor Justin M. Bibb, Cleveland City Council, and LISC Cleveland have unveiled a significant initiative aimed at tackling the city’s ongoing affordable housing shortage. The new Cleveland Housing Investment Fund (CHIF), backed by a substantial $18 million commitment from the City and a $20 million contribution from KeyBank, seeks to raise up to $100 million from mission-driven partners. The fund will provide critical capital to support the development of affordable housing throughout Cleveland, with a goal of creating between 2,500 and 3,000 new units—at least 100 of which will be homes available for purchase.
This effort comes at a time of heightened urgency, as Cleveland is currently experiencing some of the steepest rent increases in the nation. A recent Redfin report highlighted that the city led all major U.S. metro areas in annual rent growth, with an increase of 10.6% in 2024. Rising demand for housing has placed significant pressure on low-, middle-, and working-class families, prompting swift action from both public and private sectors. The collaborative investment from the City and KeyBank is intended to alleviate these pressures by expanding financing options that promote inclusive and affordable living options.
CHIF will be managed by LISC Fund Management, LLC (LFM), an affiliate of LISC, and will focus on providing flexible financing for mixed-income rental developments and affordable for-sale homes. Although the primary target areas will be middle-market and opportunity neighborhoods, the fund may also consider impactful projects outside these zones. The overarching aim is to strengthen neighborhood resilience and stimulate local economic development.
Mayor Bibb emphasized the broader vision behind the initiative: “With the creation of CHIF, we’re not only addressing a housing crisis—we’re investing in the long-term vitality of our communities. We’re grateful for KeyBank’s partnership and LISC’s expertise in delivering impactful affordable housing solutions.”
How the Fund Will Operate
CHIF will support the development of housing accessible to households earning up to 80% of the area median income—equivalent to $54,450 annually as of December 2024. Investments will range from $1 million to $5 million per project, covering both rehabilitation efforts and new construction for rentals and for-sale homes. The fund is also designed to complement existing City initiatives and bridge capital gaps in the housing market.
A key component of CHIF’s mission is to assist emerging developers and grassroots organizations that typically face obstacles in securing funding. Along with financial backing, these groups will receive technical support to help them qualify for CHIF funding. The fund is expected to deliver a high return on public investment—potentially generating $100 in impact for every $6 invested, significantly improving upon traditional ratios.
Brian Maddox, National Team Leader for KeyBank’s CDFI Lending and Investment, expressed the bank’s commitment to community development: “At KeyBank, we believe everyone should have the opportunity to thrive. Our $20 million investment in CHIF reflects our dedication to fostering vibrant, inclusive neighborhoods across Cleveland.”
Commitment to Transparency
To ensure community accountability, LISC will meet regularly with city leaders and council members to monitor progress and ensure the initiative meets its outreach and development goals. This structure is designed to maintain transparency and maximize community benefit.
City Council President Blaine A. Griffin acknowledged the pressing need for this initiative, stating, “Every day, we hear from residents about the lack of affordable housing, especially in underserved areas. CHIF is an essential tool in addressing these concerns, and City Council is proud to support it.”
As Cleveland continues to confront affordable housing challenges, CHIF represents a forward-thinking strategy to spur development and support inclusive growth. LISC Cleveland will host an informational event on April 10, 2025, for developers interested in tapping into the new fund.
Kandis Williams, Executive Director of LISC Cleveland, noted that CHIF builds on lessons learned from similar efforts in cities like Dallas, Charlotte, and Detroit, but is uniquely tailored to Cleveland’s housing landscape. “We’ve adapted successful models to reflect Cleveland’s needs and community strengths,” she said. “This fund provides much-needed flexible capital to bring projects to neighborhoods that have often been overlooked. We’re already in discussions with developers and look forward to seeing this initiative take shape across the city.”
Mayor Justin M. Bibb, Cleveland City Council, and LISC Cleveland have unveiled a significant initiative aimed at tackling the city’s ongoing affordable housing shortage. The new Cleveland Housing Investment Fund (CHIF), backed by a substantial $18 million commitment from the City and a $20 million contribution from KeyBank, seeks to raise up to $100 million from mission-driven partners. The fund will provide critical capital to support the development of affordable housing throughout Cleveland, with a goal of creating between 2,500 and 3,000 new units—at least 100 of which will be homes available for purchase.
This effort comes at a time of heightened urgency, as Cleveland is currently experiencing some of the steepest rent increases in the nation. A recent Redfin report highlighted that the city led all major U.S. metro areas in annual rent growth, with an increase of 10.6% in 2024. Rising demand for housing has placed significant pressure on low-, middle-, and working-class families, prompting swift action from both public and private sectors. The collaborative investment from the City and KeyBank is intended to alleviate these pressures by expanding financing options that promote inclusive and affordable living options.
CHIF will be managed by LISC Fund Management, LLC (LFM), an affiliate of LISC, and will focus on providing flexible financing for mixed-income rental developments and affordable for-sale homes. Although the primary target areas will be middle-market and opportunity neighborhoods, the fund may also consider impactful projects outside these zones. The overarching aim is to strengthen neighborhood resilience and stimulate local economic development.
Mayor Bibb emphasized the broader vision behind the initiative: “With the creation of CHIF, we’re not only addressing a housing crisis—we’re investing in the long-term vitality of our communities. We’re grateful for KeyBank’s partnership and LISC’s expertise in delivering impactful affordable housing solutions.”
How the Fund Will Operate
CHIF will support the development of housing accessible to households earning up to 80% of the area median income—equivalent to $54,450 annually as of December 2024. Investments will range from $1 million to $5 million per project, covering both rehabilitation efforts and new construction for rentals and for-sale homes. The fund is also designed to complement existing City initiatives and bridge capital gaps in the housing market.
A key component of CHIF’s mission is to assist emerging developers and grassroots organizations that typically face obstacles in securing funding. Along with financial backing, these groups will receive technical support to help them qualify for CHIF funding. The fund is expected to deliver a high return on public investment—potentially generating $100 in impact for every $6 invested, significantly improving upon traditional ratios.
Brian Maddox, National Team Leader for KeyBank’s CDFI Lending and Investment, expressed the bank’s commitment to community development: “At KeyBank, we believe everyone should have the opportunity to thrive. Our $20 million investment in CHIF reflects our dedication to fostering vibrant, inclusive neighborhoods across Cleveland.”
Commitment to Transparency
To ensure community accountability, LISC will meet regularly with city leaders and council members to monitor progress and ensure the initiative meets its outreach and development goals. This structure is designed to maintain transparency and maximize community benefit.
City Council President Blaine A. Griffin acknowledged the pressing need for this initiative, stating, “Every day, we hear from residents about the lack of affordable housing, especially in underserved areas. CHIF is an essential tool in addressing these concerns, and City Council is proud to support it.”
As Cleveland continues to confront affordable housing challenges, CHIF represents a forward-thinking strategy to spur development and support inclusive growth. LISC Cleveland will host an informational event on April 10, 2025, for developers interested in tapping into the new fund.
Kandis Williams, Executive Director of LISC Cleveland, noted that CHIF builds on lessons learned from similar efforts in cities like Dallas, Charlotte, and Detroit, but is uniquely tailored to Cleveland’s housing landscape. “We’ve adapted successful models to reflect Cleveland’s needs and community strengths,” she said. “This fund provides much-needed flexible capital to bring projects to neighborhoods that have often been overlooked. We’re already in discussions with developers and look forward to seeing this initiative take shape across the city.”
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