North Shore Community Bank recently invested in the Community Investment Corporation’s 1-4 Unit Rental Redevelopment program. This new innovative program is among the first in the United States to finance the redevelopment of smaller buildings for affordable rental housing. The 1-4 Unit Rental Redevelopment Program will finance approximately 200 buildings and 400 apartments over three years, helping bolster areas still reeling from the recession.
“Headlines might be touting a rental comeback, but many neighborhoods still struggle with distressed buildings and a significant need for affordable rental housing,” said Jack Markowski, CEO, Community Investment Corporation. “By financing clusters of distressed 1-4 unit buildings, our new program will help improve these neighborhoods and provide more affordable rental housing.”
CIC’s 1-4 Unit Redevelopment Program emerged after The Preservation Compact, a policy collaborative housed out of CIC in 2011 to keep rental housing affordable and in good condition. The Preservation Compact explored strategies to redevelop Cook County’s struggling 1-4 unit rental housing stock. Analysis showed that no lender or program provided financing to redevelop groups of 1-4 unit buildings. The lack of credit impeded responsible investors from achieving scale in areas rife with vacant 1-4 unit buildings.
The 1-4 Unit Rental Redevelopment Loan Program fills that gap in the marketplace, transforms vacant and distressed 1-4 unit buildings from eyesores into affordable rental housing, and encourages private investment in neighborhoods that need it the most. The program is unique in financing groups of 1-4 unit buildings and focuses activity in strategic, targeted neighborhoods such as the Cook, McHenry, Lake, DuPage, Will, or Kane Counties.
North Shore Community Bank’s investment in the 1-4 Unit Rental Redevelopment Program is one of many valuable partnerships they’ve acquired over the years. The capital they generously provided for the program will help to improve distressed neighborhoods and create additional investments among others. This huge investment further strengthens their true community bank persona and they are highly dedicated to partnering with positive organizations to make the world a better place to live.