Cincinnati Development Fund Presentation
Uploaded by
WVXU NewsCincinnati Development Fund Presentation
Uploaded by
WVXU NewsCincinnati City Council
Equitable Growth & Housing Committee
October 25, 2022
Creating Vibrant,
Inclusive Neighborhoods
Since 1988
2022
CDF’s Mission
Mission: CDF’s mission is to provide
innovative real estate financing for projects
that strengthen low-income neighborhoods
and improve lives.
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CDF’s Vision
• Vision: is to be at the forefront of
redevelopment plans in Greater Cincinnati,
helping low-income communities preserve
their historic buildings and create vibrant,
inclusive neighborhoods.
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About CDF
• Created in 1988 as an independent, non-
profit community development lender,
focused on affordable housing.
• In 1999, expanded beyond its traditional role
as a conduit for local banks, and began
attracting diverse sources of capital to make
direct loans for mixed-use, mixed-income
neighborhood revitalization projects.
• Expanded into commercial real estate
financing in 2005 with its first allocation of
federal New Markets Tax Credits (NMTC).
• As of 6/30/2022, CDF has financed projects
totaling more than $444 million (plus $382
million in NMTC investments), resulting in
the creation of 7,046 housing units and more
than 22,410 jobs, and leveraging
investments totaling more than $940 million CDF’s Office- 1224 Race St (OTR)
(plus $580 million in NMTC leverage
investment). 5
What is the need?
• Financial gaps are a function of the
“math” of building affordable
housing
• Developers can access certain
programs now, but moving beyond
status quo requires new sources
• Affordable Housing Leverage Fund
(AHLF) is a response to this reality
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Gaps Increase as Affordability Deepens
Affordable Housing Capital Stack And Financing
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120
100
80
60
40
20
0
Market Rate 80% AMI 60% AMI 30% AMI
Loan Amount Cash Gap Income Expenses
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Affordable Housing Leverage Fund
• “fund of funds” managed by CDF
• Aggregate funding from multiple sources so:
– Each dollar can go further in combination with others;
– Developers can plan for a more predictable and
streamlined, and singular, place to go to fill those gaps;
– new and different developers can engage with a process
that is otherwise effectively limited to established groups
with the expertise and capital to work through a very
difficult and highly specialized process; and
– establishing one place (with established credibility
managing and deploying third party funds) for those who
want to contribute funding to address this community
priority. 8
Developer with Resources
$
$
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Small Developer
$
$
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One Fund of Funds
$ $$
CDF
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Affordable Housing Leverage Fund
Sources
Initial Commitments:
• City of Cincinnati: $12.75MM AHTF
• CDFI Capital Magnet Fund: $5.4MM
• GCF: $5MM
• Bon Secours Mercy Health: $3.2MM
• CDFI Rapid Response: $1.8MM
• Health Path: $500K
• Eagle/Western Southern: $5MM
• City of Cincinnati: $34MM HUD 108 loan
• CDF Enterprise Capital (CDF’s balance sheet)
Pending Commitments:
• Advanced negotiations with multiple public and private
sources
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Why Sources Matter
• The AHLF has and will manage multiple
funding sources.
• Grants to CDF can be loaned or granted by CDF
without the expectation of repayment.
• Loans to CDF must be repaid by CDF, so loans
from CDF must be structured as true debt.
• Net: range of products that requires matching
source(s) to project need.
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Leveraging & Coordinating Funding
• The expertise CDF brings to this effort:
– pooling resources
– matching them to projects at critical junctures
– knowledge of the market, people , and
communities
– speed
• Example: Slater Hall
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About CDF
Lending as a core discipline:
• 34 years of lending to underserved communities
• Practices and procedures geared to vetting borrowers and
structuring debt to ensure success
• Embedded in community development
• Full-service: loan underwriting, origination, construction
oversight, servicing, revolving into new projects
• Organizational focus on affordable housing
What We Do:
• Identify needs for access to capital
• Raise funds
• Create products
• Seek positive impacts 15
Affordable Housing Leverage Fund
• A gap-filling fund that will leverage CDF’s lending expertise,
knowledge of the market, and relationships to accelerate the
production and preservation of affordable housing by
aggregating funding to provide a new and flexible source of
financing to developers that aims to:
– Expand production/preservation by existing developers
– Entice new developers into the market, and
– Attract new sources of private and public funding
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AHLF Strategy
• First, by focusing on immediate production:
– Filling gaps caused by rising construction costs
• 9% LIHTC
• NOFA
• Other
– Growing the 4% LIHTC market
– Equity Bridge Loans
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AHLF Strategy
• Second, by intentionally targeting and
encouraging:
– Smaller and minority developers
– Smaller projects
– Geographic diversity
– Mixed-income
– New structures and products
• Through engagement with and learning from
these priority communities
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AHLF in Action
Production from 2020-2022:
• CDF financed 16 real estate projects that included
affordable housing.
• These projects created 527 affordable units across the
housing spectrum: homeless shelter, permanent
supportive housing, LIHTC, and workforce housing.
• Total loans of $12.5 million leveraged $73 million of
additional capital.
Pipeline:
• Engaged with multiple projects at a range of sizes and AMI
levels
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Lower Price Hill Thrives
Lower Price Hill Neighborhood
Predevelopment financing ($380,000) to support:
47 units of affordable housing in 10 buildings and
one new construction building
Developers: Community Matters and Over-the-
Rhine Community Housing
Total Project Cost: $12.6 million
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Melrose Place
Walnut Hills Neighborhood
Predevelopment financing ($500,000) for the
creation of:
26 new units of permanent supportive housing
with wraparound support services
Developers: Model Property Development and
Interfaith Hospitality Network of Greater
Cincinnati (IHNGC)
Total Project Cost: $6.35 million
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John Arthur Flats
Northside Neighborhood
Predevelopment financing for the creation of:
57 units of new affordable senior housing
Developers: Pennrose LLC and Northsiders
for Sustainable Transformation (NEST)
Total Project Cost: $11.1 million
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1714 Vine Street
Over-the-Rhine Neighborhood
10 units of new rental housing
6 of 10 units are affordable to 80% or below
AMI; all 1 bedroom, 1 bath units
Developer: 8K Development Company
Total Project Cost: $1.2 million
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728 Chalfonte Place
Avondale Neighborhood
Assistance provided ($182,000) to small nonprofit
developer to acquire one 2-family and gut rehab an
adjacent 2-family on Chalfonte Place
All units will be affordable to households below 80% AMI
Project is completed and leased up.
Developer: Renting Partnerships
Total Project Cost: $386,951
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AHLF Strategy – Summary
– First, out of the gate, by prioritizing “shovel-ready” projects
that can have immediate impact on our overall volume and
which might be at risk of dying on the vine without this new
source of funding.
– Second, by holding back some of the initial round of funds
for projects in that second grouping that may need to tailor
their projects to work with this new product; while also
intentionally reaching out to the communities and places
that may not be as plugged into the development pipeline
as the established developers.
– Three, to continue aggressively pursuing the kind of funds
necessary for each type of product.
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Looking Forward
• Borrowers can apply through current
application process at www.cindevfund.org
• Future RFP once additional funds are secured
• Rolling applications and continued
engagement to develop new products
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Thank You
We deeply appreciate this partnership
and look forward to the work of
meaningfully addressing housing
affordability in our City together.
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Thank you!
Contact Information
Joe Huber, President and CEO
[email protected]
Robie Suggs, Chief Lending Officer
[email protected]
Cincinnati Development Fund
1224 Race Street
Cincinnati, Ohio 45202
www.cindevfund.org
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