COMMUNITY BLUEPRINT CCLF E-NEWSLETTER OF COMMUNITY DEVELOPMENT PROJECTS, ISSUES & FEATURES 3rd Quarter/2012
CCLF Receives $1.45 Million CDFI Fund Award and $3 Million for Healthy Food Financing Initiative Awards grow CCLF to $36 million under management The Chicago Community Loan Fund (CCLF) received a $1.45 million, permanent capital financial assistance award from the U.S. Department of the Treasury's Community Development Financial Institution (CDFI) Fund. This award will support the increase in demand for CCLF's lending to community development organizations throughout metropolitan Chicago for commercial/retail development and neighborhood stabilization initiatives that benefit low- to moderate-income communities and families.
In This Issue CCLF Receives CDFI Awards CCLF Makes Largest Permanent Loan CCLF Noteworthy 2011-2012 Annual Report CCLF Building for Sustainability NSP Update
CCLF's 2011-2012 Annual Report Online
CCLF will use the Healthy Food Financing Initiative award to make more loans to social enterprises such as The Plant. A volunteer is pictured above with The Plant's aquaponics system, a closed-loop system used to grow produce and raise fish using net-zero energy. (Photo: Steve Becker)
In addition, CCLF was one of 12 organizations nationwide to receive the CDFI Fund's $3 million Healthy Food Financing Initiative award to support its ongoing work to bring healthy food options to Chicago's lower-wealth communities. Together, these awards, totaling just over $4.45 million, will help CCLF leverage additional support and investment, resulting in a dramatic increase in its capacity to help create healthy, thriving communities in the Chicagoland area. It will also increase CCLF's total capital under management to over $36 million.
You can view or download this year's report on our website.
CCLF Makes its Largest Permanent Loan $2.6 million loan preserves 30 housing units as affordable This August, CCLF closed its largest ever permanent loan to Genesis Group 5800, LLC to help refinance a 30-unit affordable housing building in the Washington Park neighborhood. Steve Thomas of 5T Management, like many smaller, credit constrained developers, had difficulty finding funding for this loan in the current lending market. "The banks who thought they may be able to get the deal done wanted hundreds of thousands of dollars to pay down the loan," says Thomas.
CCLF Building for Sustainability Workshop October 11-12
This two-day green building and design primer will help affordable housing and community development practitioners better understand what green building is. Learn about the integrated design process, green project finance, energy modeling, building deconstruction and more! Time: 8:45 am-5:00 pm Location: Chicago Center for Green Technology 445 North Sacramento Boulevard Register online or contact Maureen at mmcquilkin@cclfchicago.org for more information.
Thomas is not alone trying to find a way across the credit gap. According to a 2012 study by DePaul University's Institute for Housing Studies, 35 percent of units in Cook County are small multifamily properties. Of these, about 93 percent that received a mortgage between 2005 and 2010 were considered credit constrained, where the amount of credit for a property is not enough to meet the property's demand. "I know there are many local developers that find themselves in the same situation [that I was in], with great personal and business credit, well capitalized with a great track record, but find themselves pushing the limit with their local lender and have no secondary market that is willing to work with them," says Thomas. The Washington Park building was 100% occupied with a 500-person waiting list. However, without financing, this building, like many others in Chicago, was at risk of falling into disrepair. CCLF, as a member of the Cook County Preservation Compact, was motivated to not let this happen. Additionally, with the need for affordable rental housing higher than ever, Thomas was not able to move forward with any other developments without being able to refinance the maturing debt on the Washington Park building. CCLF recognizes the bind that developers like Thomas are in and is often times able to be the lending source that developers like Thomas are looking for. Not only will this loan preserve 30 units of housing as affordable, but also will enable energy efficiency upgrades and preserve six jobs.
CCLF Thanks New Investor
CCLF would like to give special thanks to new investor Andrea A. Raila & Associates for their generous investment of $100,000. Mike Rohrbeck is part owner of Andrea A. Raila & Associates; as a former community leader and borrower, he has maintained a relationship with CCLF for over 15 years. We are thankful to steward his firm's community investment!
"If this continues to be the [lending] environment that we must work in, the small- to medium-sized independent developer will no longer flourish and will cease to be the backbone of our Chicago neighborhoods," Thomas forecasts. "If not for CCLF, I would not be able to acquire additional properties at reasonable terms. In six weeks [they] had me a commitment letter and closed the deal within eight weeks."
CCLF Noteworthy Thank You to Funders and Investors For their recent grants, CCLF thanks Bank of America, Opportunity Finance Network as a result of Starbucks' Vote.Give.Grow. Program, Community Accounting, HSBC, Polk Bros. Foundation and US Bank. For their recent investments and renewals, CCLF thanks Andrea A. Raila and Associates, Louise and Robert Bowditch and Phyllis Hatfield Living Trust.
Staff & Board News CCLF is happy to welcome our newest team members. Dana Peterson joins the staff as Chief Operating Officer, a newly created position expected to help CCLF achieve greater community impact by improving operations. He previously served as CFO for Chicago Commons Association, McCormick Theological Seminary and, most recently, IFF. Elizabeth Ginsberg joins CCLF's Finance and Administration Team as a member of the Lutheran Volunteer Corps, where she will help with administrative duties. Maureen McQuilkin also joins CCLF as a member of the Lutheran Volunteer Corps. As Program Assistant for CCLF's Lending Team, Maureen assists with workshops, handles loan inquiries and helps with other special projects. Welcome Dana, Elizabeth, and Maureen! CCLF President Calvin Holmes has been appointed to Cook County's Land Bank Advisory Committee to help determine the feasibility of structuring a land bank to deal with the County's distressed lots. CCLF's Emily Sipfle was recently appointed to the membership development chair for Women in Planning, an organization for women professionals to expand their skills, network and exchange ideas. Kallie Rollenhagen joins the CCLF staff as the Technical Assistance Program Coordinator after a year with CCLF through the Lutheran Volunteer Corps. Kallie also recently received her LEED Green Associate accreditation. Congratulations Calvin, Emily and Kallie!
Credit Memos: CCLF lends $6.8 million in Third Quarter Chicago Neighborhood Initiatives, Inc. received $280,000, $278,000, $270,000 and $266,000 in construction loans to rehab four properties in Pullman through the City of Chicago NSP. Genesis Group 5800 Inc. received a $2,600,000 minipermanent loan to refinance a 30-unit residential building in Washington Park. This loan is part of the Cook County Preservation Compact. Thanks to Jessica Simons and Bradley Ritter of Paul Hastings LLP for serving as CCLF's counsel on this transaction.
Neighborhood Stabilization Program (NSP) Update: 37 of the properties that CCLF provided financing for through the City of Chicago's NSP program have been sold to new homeowners, totaling over a third of the 180 units financed through CCLF.
Board of Directors John L. Tuohy, Chair Chapman and Cutler (retired) Susan Kaplan, Vice Chair The Law Project (retired) Charles Walls, Treasurer ComEd Mohammed M. Elahi, Secretary Andes Capital Group LLC Charles F. Daas Ravenswood Community Council Erik L. Hall Citigroup Toya Horn Howard Real Estate Attorney Edward J. Hoynes, CPA Community Accounting Services Ed Jacob Neighborhood Housing Services of Chicago Rafael M. Le贸n Chicago Metropolitan Housing Dev. Corp. Patricia Y. McCreary Consultant Raymond McGaugh McGaugh Law Group Steven Quasny BMO Harris Bank Nancy Radner Ounce of Prevention Matthew R. Reilein JPMorgan Chase & Co. Kathryn Tholin Center for Neighborhood Technology
Staff Karry L.Young Development, LLC received a $436,000 construction loan to rehab a 4-unit rental property in Austin through the City of Chicago NSP. Keaney Construction, Inc. received a $337,500 construction loan through the City of Chicago NSP to rehab a 2-unit property into a single family residence in Hermosa. Preston Bradly Center, NFP received a $175,000 construction and minipermanent loan to address code and safety violations in a property in Uptown. This loan is part of the City of Chicago's Small Business Development Fund. Thanks to Kimberly Edsenga, Holly Snow and Aaron Tucker of Paul Hastings LLP for serving as CCLF's counsel on this transaction. Urban Juncture, Inc. received a $1,800,000 construction and minipermanent loan for the development of a commercial building in Bronzeville, which will feature five restaurant/food venues. This loan is part of Calvert Foundation's Communities at Work Fund and State Farm's Strong Neighborhoods Fund. Thanks to John Hammond of McDermott Will & Emery LLP for serving as CCLF's counsel of this transaction. Unity Enterprise Development Corporation received a $280,000 construction loan to rehab a single family residence in Hermosa through the City of Chicago NSP. West Humboldt Park Development Council received a $75,000 working capital loan to rehab a building to be leased by Quench Restaurant. This loan is part of the City of Chicago's Small Business Development Fund and the Calvert Foundation's Communities at Work Fund. Thanks to Mark O'Meara & Ami Patel of Chapman & Cutler LLP.
Calvin L. Holmes President Dana K. Peterson Chief Operating Officer Jane I. Ames Vice President, Finance & Administration Rob Rose Vice President, Lending Mark Fick Senior Loan/Program Officer Paul Gakhal Senior Loan/Program Officer Lycrecia Parks Sr. Portfolio Management Officer Clarice Norin Loan Closing/Portfolio Officer Juanita Walker Office Manager Emily Sipfle Lending & Portfolio Management Associate Jessica Stoneberg Finance & Administration Associate Lincoln Stannard Program Assistant Kallie Rollenhagen Technical Assistance Program Coordinator Elizabeth Ginsberg Finance & Administration Assistant Maureen McQuilkin Program Assistant
Consultants
CCLF provides low-cost, flexible financing and technical assistance to community development organizations engaged in affordable housing, social service and economic development initiatives that benefit low- and moderate-income neighborhoods and households throughout metropolitan Chicago.
Torrence Moore Senior Consultant Special Initiatives
Credits Editor Kallie Rollenhagen Printer Salsedo Press
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