Community Investment Corp

Programs: In fy 2017, cic approved 95 loans for a total of $60. 4 million under the multifamily loan program. These loans financed the acquisition and rehab of 1,724 residential and 37 commercial units. All loans carried a 10-year term and most loans had a 25-year amortization. All but one of the loans were approved using cic's three-year adjustable rate loan. Of the total multifamily loans, 74 loans for $45. 5 million were regular first mortgage loans. 21 loans for $14. 9 million were approved under the multifamily flex fund program. Created in 1998, the flex fund enables cic to use a portion of the multifamily loan program for "innovative and complex" lending in order to reach unmet neighborhood need or stimulate an increased level of rehab activity in neighborhoods needing an intervention stimulus. In order to achieve this goal, loan-to-value (ltv) and debt service coverage ratio (dscr) underwriting ratios can be less stringent than standard multifamily loans. Beginning in april 2017, cic began using flex fund second mortgages to fund energy savers loans in order to more fully integrate energy savers lending into the cic multifamily platform. In fy 2017, cic also used the flex fund program to provide $10. 3 million in short-term acquisition financing for three buildings in strong chicago markets to assist the buyers in preserving affordable rental housing. All of these loans are expected to be refinanced within the next two years. Cic does not anticipate selling these loans to the multifamily note purchase investors. For several years, cic's lending activity has confronted the economic challenges of chicago's low and moderate income communities - areas that have endured high unemployment rates and depressed real estate values. The overall portfolio and the credit process, however, remain strong; losses and delinquencies are within manageable limits for a portfolio of cic's age and composition. In total, at the close of fy 2017, cic's multifamily loan program portfolio stands at $188 million of notes sold to investors.

in fy 2017, building on the program's initial success and recognizing an ongoing need in the marketplace, cic made two significant changes. First, cic secured investor approvals and commitments to extend the program through september 2020 and expand the loan pool to $38 million. Second, cic expanded the program to include acquisition and rehab financing, in addition to permanent take-out financing. By providing acquisition/rehab financing, cic is enabling developers to further leverage their resources and is in a better position to ensure high quality rehabs. As with cic's existing multifamily program, this product expansion has transformed the 1-4 unit lending program into a one-stop financing stop for small rental properties in chicago. Cic received a $686,500 grant from the cdfi fund to support expansion into acquisition/rehab lending. The loan committee for the 1-4 program is comprised solely of participating note purchasers.

expanding energy retrofits: energy savers, a preservation compact initiative, has resulted in a 25-30% reduction of energy use for retrofitted buildings. In 2017, the compact helped to double utility commitments in low and moderate income neighborhoods. Coordinating public agencies: the compact convenes an interagency council of city, county, state, and federal agencies to develop and pursue strategies to preserve publicly funded properties at risk of being lost from the affordable housing stock. In the past four years, compact partners have helped preserve 21 assisted properties with 3,665 units. Affordable housing in four properties with 714 units under federal contracts was preserved in fy 2017. Creating affordability in strong markets: the compact is developing a new $30 million opportunity investment fund to create affordable rental units in strong markets. The compact secured $3. 1 million from the capital magnet fund of the federal cdfi fund, and $200,000 from the jp morgan chase foundation to support pilot projects as it creates the fund. Code relief: the city of chicago department of buildings passed a new electrical code which included the compact's recommendations, and announced new plumbing code relief based on recommendations developed by the compact with developers, architects, and advocates. The changes to both codes will help reduce rehab costs for owners of rental property. Property taxes: in fy 2017, the compact has mobilized efforts to combat unexpected and unwarranted increases in class 9 property tax assessments that would otherwise result in dramatic increases to property tax bills for affordable multifamily properties. In fy 2017, the compact and the chicago housing authority (cha) were awarded an urban land institute vision award for their successful work to preserve presbyterian homes, 110 units of affordable senior housing in three buildings on chicago's north side.