Community Investment Corporation real returns
vacant buildings rehabbed and re-occupied safer, stable neighborhoods affordable homes near workplaces preservation and rehabilitation of Chicago rental housing stock energy efficient buildings and apartments well-managed apartments $132 million for 202 loans assistance and support to entrepreneurs who hire and buy locally since 1998 CIC is a communities, people, and investors. Community Investment Corporation (CIC) is the Chicago metropolitan region s leading lender for the acquisition, rehabilitation, and preservation of affordable rental housing. CIC financing provides badly needed investment in credit starved communities, ensures affordable housing for Chicago s workforce, and offers a fair return to investors. CIC s innovative financial programs makes the Chicago region a better place to live, work, and do business. new investment in credit starved communities increased property values better code enforcement 2 3
communities Clean, secure, and well maintained apartment buildings help set the tone for entire neighborhoods. They protect property values, including nearby single family homes, and they contribute to a safe environment where families can sit outside and children can walk to school. CIC ENSURES CREDIT IS AVAILABLE IN ALL COMMUNITIES. $1.2 billion invested in 109 Chicago area communities since 1984. While some banks are making short-term loans to strong borrowers in strong neighborhoods, low and moderate income communities, where affordable rental housing is needed the most, remain starved for capital. Without an adequate supply of credit, the long-term recovery of these neighborhoods is jeopardized. CIC invests in ma and pa developers who own anywhere from 5 units to 1,000. Motivated by cash flow, the potential for property appreciation, and the opportunity to be their own boss, these hands-on entrepreneurs are classic small business owners. They invest their own time and money, they hire and buy materials and supplies locally, and they are committed to the communities within which they work. The majority of CIC borrowers have been property owners for over ten years, and property ownership and management is their full-time job. In many neighborhoods, the owners of apartment buildings are among the strongest and most stable local businesses. When we invest in CIC, we know that they will bring other resources to the table to aggressively rehab housing and address the most pressing needs in our communities. Rahm Emanuel, Mayor City of Chicago 4 5
CIC Multifamily Lending 55,000 units of affordable rental housing for 130,000 people people $31,000 Median income for renter households in Cook County One of the Chicago region s strengths has always been its diverse economy and skilled workforce. The people who live in CIC s buildings are typical of renters everywhere. They are usually younger and less affluent than the population at large. They fill a wide variety of positions in the workforce, including teachers, construction workers, health care professionals, drivers, and retail clerks. Typical rent in a CIC financed building $700-$900 per month But over the last twenty years, the loss of affordable rental housing has priced many qualified workers out of the Chicago market. Today, nearly 90% of renters in Cook County earning less than $30,000 pay more than 30% of their income for housing. Full-time, low-wage workers, whose wages may average only $20,000 annually, often pay a considerably higher percentage. By investing in privately owned, affordable rental housing in the communities that need it most, CIC helps families build a stable financial future and helps the region attract and retain the skilled workforce needed to grow and prosper. 200,000 Gap of affordable rental units in Cook County CIC is an effective and efficient way for Citi to extend our multifamily lending resources to communities we otherwise have a hard time reaching. Andrew Ditton, Managing Director, Citi Community Capital 6 7
investors Investing in the Chicago region s low and moderate income communities is not easy. Where are the investments that will yield the greatest returns - social and financial? Which deals are being undertaken by experienced and knowledgeable owners and managers? How do you hedge against loss? Community Investment Corporation is the Chicago area s leading lender for the acquisition and rehab of privately owned, neighborhood rental buildings. CIC has a thorough understanding of Chicago area communities, and a specialized expertise in multifamily housing. Through CIC, public, private, and philanthropic investors pool their resources to address recognized areas of need. CIC brings a detailed knowledge of the neighborhood, the building, and the capabilities of the borrower to each deal. CIC s comprehensive set of services includes acquisition/rehab financing, financing for energy conserving retrofits, property management training, and policy leadership to preserve affordable rental housing. Offering more resources and expertise than a small lender and more personal attention than a large institution, CIC stands as the leading provider of credit and other services for the rehabilitation and preservation of affordable rental housing throughout the Chicago area. CIC is a good investment Experienced CIC staff, board, and loan committee members have decades of lending and community development experience. Prudent, Cautious, Conservative Skilled loan officers carefully underwrite loan proposals to ensure good performance and low default rates. Self-Sufficient Income from lending and other activities covers CIC expenses and generates an operating surplus every year. Strong Relationships Strong relationships with government, academic, and philanthropic institutions, as well as the private sector, broaden CIC s reach, maximize results, and ensure innovative programs. CIC has created financial instruments that are attractive to investors and provide capital for underserved Chicago neighborhoods. Solid Returns CIC consistently delivers social impact and positive economic returns to investors. Carl Jenkins, Managing Director Community Investments, BMO Harris 8 9
40 years Since 1974, CIC has focused private, public, and philanthropic resources on affordable housing and community development throughout the Chicago area. Rehabbing and Preserving Direct Action to Preserve Rental Housing Affordable Housing CIC s non-profit affiliate, Community With commitments from 40 private lenders, Initiatives Inc. (CII), takes action to directly the Multifamily Loan Program is the intervene in the preservation of affordable foundation for all of CIC s work. Beyond the rental housing. money provided by investors, CIC leverages millions of public, philanthropic, and other Promoting Policies to Preserve private dollars to rehab and preserve Affordable Rental Housing affordable rental housing. CIC is coordinator of The Preservation Compact, a forum where private, public, Cutting Utility Bills and philanthropic leaders develop and CIC s Energy Savers Loan Fund, in partnership promote policies to preserve affordable with Elevate Energy, conserves energy and rental housing in Cook County. cuts utility bills in multifamily buildings. Helping Property Managers Succeed CIC s Property Management Training Program provides owners and managers with the information and skills they need to successfully operate multifamily housing. CIC leverages the private sector and provides critical capital, attractive loan products, and support services to the businesses that operate affordable rental housing in Chicago s low-income communities. John D. and Catherine T. MacArthur Foundation Award for Creative and Effective Institutions, 2012-2,000 loans and $1.2 billion in community investment since 1984-55,000 affordable rental units rehabbed and preserved for 130,000 people - Energy conserving retrofits for 18,000 units - $16 million in financing - 30% reduction in energy consumption with typical annual savings of $10,000-350 buildings with 7,000 units rehabbed and preserved through the Troubled Buildings Initiative - 200 troubled buildings with 3,500 units purchased and transferred to responsible new owners - 30 failed condominium buildings acquired and sold to new owners for affordable rental housing Property management training for more than 13,000 landlords and managers - Fairer property taxes for multifamily housing - New resources for Energy Savers Fund - $28 million secured to finance 1-4 unit properties - Preservation of government assisted rental housing 10 11
the investors Banks Amalgamated Bank of Chicago Associated Bank of Chicago Banco Popular Bank of America Barrington Bank and Trust BMO Harris N.A. Bridgeview Bank Citibank Cole Taylor Bank Delaware Place Bank Fifth Third Bank First Bank and Trust Company of Illinois First Bank of Highland Park First Eagle Bank First Midwest Bank First Savings Bank of Hegewisch FirstMerit Bank N.A. Forest Park National Bank & Trust Hinsdale Bank & Trust Company Hoyne Savings Bank Inland Bank and Trust JPMorgan Chase Bank N.A. Lake Forest Bank and Trust Company Leaders Bank MB Financial Bank N.A. Metropolitan Capital Bank North Shore Community Bank Northbrook Bank and Trust Company Old Plank Trail Community Bank Oxford Bank PNC Commnuity Development Company, LLC RBS Citizens N.A. (Charter One) Republic Bank of Chicago Seaway Bank and Trust Standard Bank and Trust Company The Northern Trust Company The PrivateBank and Trust Co. Town Center Bank U.S. Bank N.A. Urban Partnership Bank Village Bank & Trust and Wintrust Financial Corporation Philanthropy John D. and Catherine T. MacArthur Foundation Grand Victoria Foundation Polk Bros. Foundation Government City of Chicago Community Development Financial Institutions Fund Illinois Housing Development Authority Chicago Metropolitan Agency for Planning Office of the Illinois Attorney General 222 South Riverside Plaza, #2200 Chicago, IL 60606-6109 312.258.0070 cicchicago.com