Cleveland launches Housing Investment Fund for affordable housing

Cleveland has launched a new housing investment fund aimed at improving affordable housing in the city. The fund, which totals $38 million, was introduced during a press conference at City Hall. Mayor Justin Bibb was present along with representatives from KeyBank and the Local Initiatives Support Corporation. The mayor emphasized the urgent need for quality affordable housing in Cleveland. The fund will provide low-interest loans and equity investments to housing developers. An initial $18 million came from the city, and $20 million from KeyBank, but there are plans to raise a total of $100 million. This larger goal would help finance housing projects, creating up to 3,000 new housing units, including homes for lower-income residents. Developers can expect to receive between $1 million and $5 million from the fund for each selected project. The funds will focus on both rehabilitation of existing buildings and new construction. Areas outside downtown Cleveland will benefit, particularly neighborhoods in need of more housing options. KeyBank's investment is part of its ongoing commitment to affordable housing in the region. Officials are also seeking further investments from local banks and philanthropies to help address housing shortages. Additionally, the fund aims to support minority developers, offering them guidance and resources to access capital more easily.