COMMUNITY BLUEPRINT:
CCLF’S NEWSLETTER OF COMMUNITY DEVELOPMENT PROJECTS, ISSUES & FEATURES 3rd Quarter/2013 In This Issue Mercy Housing Bestows its Partner in
Innovation Award to CCLF
Mercy Housing honored 19 partner organizations that participated in a concentrated community development effort in the Pullman community of Chicago. The Chicago Community Loan Fund was presented with one of the awards for creating or preserving healthy family housing through the renovation of Pullman Wheelworks and the rehab of historic townhomes in Pullman.
• Mercy Housing Award • LUCHA’s Borinquen Bella Blast • Genesis Housing and CCLF • Southland Community Development Fund • Oakwood Shores Opens
HB 3267 Becomes Law
Rob Rose, Vice President of Lending for CCLF, attended the signing of House Bill 3267, which gives Disadvantaged Business Enterprises (DBEs) throughout Illinois the opportunity to receive loan assistance from the Pictured: Bill Goldsmith, Mercy Portfolio Services; Illinois Department of Transportation. CCLF provided financial and Calvin Holmes, CCLF; and 9th Ward Alderman “This legislation will support jobs and knowledge transfer investments Anthony Beale encourage business growth in Illinois,” through the City of Chicago’s Governor Quinn said. “We are comNeighborhood Stabilization Program (NSP) in Pullman. A total of thirteen single mitted to helping disadvantaged busifamily homes and small apartment buildings were financed by CCLF with the goal ness enterprises build capacity and of seeing home values stabilize and neighborhood decline prevented as blighted compete for economic opportunities.” buildings were refashioned into homes for families. Bill Goldsmith, President of Mercy Portfolio Services, presented the awards and stated, “On behalf of Mercy Housing, Anaerobic Digester Arrives it is an honor to recognize nineteen key partners who have demonstrated creativity, at the Plant undertaken substantial risks, and created new replicable development models.”
LUCHA Hosts Borinquen Bella Blast
CCLF borrower Latin United Community Housing Association (LUCHA) celebrated the completion of its Borinquen Bella apartment complex, which features 47 units that will provide affordable housing to over 150 tenants in the Humboldt Park community. “These properties are located in the 26th Ward, where rents increased 26 percent from $743 a month to $938 from 2000 to 2010,” said Professor Ralph Cintron from the University of Illinois (Cintron, Toro-Morn, Zambrana and Scott, 2012). He cited that 20% of families leaving the 26th Ward are being replaced by non-family households. Citywide, the average loss of family households was at 9%. “LUCHA is helping to keep those families here,” he affirmed. CCLF borrower The Plant was thrilled to see the arrival of its anaerobic digester system and combined heat Charlene Andreas, Acting Executive Director of LUCHA, stated, “Without predeand power turbines. CCLF provided velopment financing, Borinquen Bella would not have been able to attract the an equipment loan to purchase and funding needed to complete the project.” In 2008, CCLF made a predevelopment loan to LUCHA to help with emergency repairs while the rest of the financing was install the digester, which will convert assembled. “We are proud to be a supporter of these types of community projects waste from produce vendors and lothat preserve affordable housing,” said Rob Rose, CCLF’s Vice President of Lending. cal breweries to biogas that can be “As a predevelopment lender, we are so proud to see this project go from concep- used for heat and electricity creating a zero-sum outcome for the business. tion to completion and preserve affordable housing in Humboldt Park.”
Genesis Housing and CCLF to put National Foreclosure Settlement Funding to Work
CCLF’S Repeat Borrowers
Financing Available for TOD Projects in Metro Chicago’s Southland
Boyer feels that CCLF understands his business plan more than some large banks might. This thought was echoed by Brendy Sims, COO of Rimland Services.
Since its founding in 1991, CCLF has extended 305 loans to 180 organizaThe Illinois Attorney General awarded Genesis Housing Development Corpotions. This means that CCLF has relaration (GHDC) $750,000 for further implementation and expansion of their tionships with many repeat borrowers Neighborhood Stabilization Program in the target areas of Chatham, Auburn – organizations that have received Gresham, Greater Grand Crossing and Englewood (called the CAGE communitwo or more loans. Two of these reties). GHDC, CCLF and Northern Trust expect to partner in this initiative to cre- peat borrowers are Blue Chair Capital, ate affordable homeownership and rental units without deep private or govLLC and Rimland Services NFP. Blue ernment subsidies at the project level. This will be achieved by providing direct Chair has received three loans from subsidies, low cost financing and technical assistance for the development of CCLF since 2012, while Rimland Services has five loans, starting in 2004. a total of thirty-five foreclosed homes and returning them to productive use within a three year period. Blue Chair focuses on properties for low- to moderate-income renters, Attorney General Lisa Madigan awarded the funding from the National Forewhich fits in well with CCLF’s mission, closure Settlement, which stems from her lead role in obtaining a historic $25 according to owner Mike Boyer. billion national settlement in 2012 with the country’s five largest bank mortgage servicers. Attorney General Madigan announced that a total of $70 million will “CCLF is not a bureaucratic organizabe available to assist housing efforts across Illinois to rebuild communities that tion,” he said. “I’m always able to reach have been devastated by the national foreclosure crisis. “With these awards, we out and talk to the people that make are making a down payment on a better future for families in communities hard- the decisions. You have common sense est hit by the foreclosure crisis,” Madigan said. “The work being done by these underwriting and your goals seem to be aligned with our goals, or vice versa.” outstanding organizations will help move us forward on the road to recovery.”
The South Suburban Mayors and Managers Association (SSMMA) and a coalition of community organizations are working together to encourage transit oriented developments (TOD) within one half mile of transportation hubs, includ“They’re more sympathetic to what ing Pace and Metra stations, located in the southern suburbs. This effort, called could be some shortcomings with a the Southland Community Development Fund (SCDF), is co-managed by CCLF not-for-profit,” Sims said. and Enterprise Community Partners. The SCDF was introduced to community developers and municipal leaders on August 21, 2013 at a forum sponsored Rimland Services is an organization by Ice Miller LLP, Legal Counsel. Present were a diverse mix of stakeholders in based in Evanston that provides support urban development including government agencies, developers, banks, comto adults with autism. Loans from CCLF munity development financial institutions and residents. The goal is to provide have gone to purchase and fix up eleven group homes across Chicagoland. the hard to obtain financing for pre-development and land acquisition costs Both Boyer and Sims anticipate more in order to encourage developers to select the Southland community for new collaboration with CCLF in the future. mixed-use projects that provide for more walkable and livable communities.
Wilson Yard Study
“The Southland Fund will be a patient lender with a ready source of capital to Now Available assist developers during the early CCLF’s Wilson Yard Study evaluated the stages of their impact of one commercial real estate projects,” said loan made in the Uptown neighborCCLF President hood of Chicago. This study helped Calvin Holmes. illustrate that our investments are “As these developmaking a difference by improving ments move from the quality of life of residents in low pre-development wealth communities. The results of to construction, this study make a very strong case for the consortium CCLF to do more commercial-retail projects because these projects prohas agreed to vide housing and job creation/retenprovide technition; prevent displacement; and offer cal assistance and services so residents don’t have to construction and/ Pictured: Torrence Moore and Calvin Holmes, CCLF; Andy leave the community to shop or find or semi- or perGeer and Rosa Ortiz, Enterprise; Herman Brewer, Cook County jobs. Go to http://cclfchicago.org to manent financing Bureau of Economic Development and Ed Paesel, SSMMA download the study. for projects.
Oakwood Shores Terrace Apartments Open Oakwood Shores Terrace Associates Limited Partnership held a ribbon cutting ceremony on July 27 for its Oakwood Shores Terrace Apartments and Medical Center. This new construction, mixed-use, midrise building forms part of the revitalization of the former Ida B. Wells and Madden Park public housing projects. CCLF provided predevelopment financing for this project that resulted in 48-units of affordable housing with a fully licensed clinic on the ground floor. Pictured: CCLF President Calvin Holmes (far right) joins 4th Ward Alderman Will Burns (center) and other dignitaries in the ribbon cutting ceremonies of Oakwood Shores Terrace Apartments and Medical Center.
CCLF Noteworthy Thank You to Funders and Investors
For their recent grants, CCLF thanks Bank of America Foundation, Citi Foundation, Cole Taylor Bank, PNC Foundation, Polk Bros. Foundation and U.S. Bancorp Foundation. For their recent investments and renewals, CCLF thanks Sara Jo Light, Simrit Dhesi, School Sisters of St. Francis, Calvert Foundation and Wheaton Bank & Trust Company.
CCLF Staff & Board News After 46 years of working as a bookkeeper, bill collector, claims adjuster, paralegal and loan closing officer, Clarice Norin decided to retire. Clarice served as a Loan Closing Officer for Chicago Community Loan Fund and was able to work with many community development organizations building projects that had a social impact. “This is the best job I ever had because of what we do for people,” she said. Rob Rose, Vice President of Lending, joined Citibank Pictured: Norin NMTC Corporation Advisory Board. As an advisory board member, he will provide feedback on the community impact of selected investments and loans within Citi’s target market in low-income communities. CCLF welcomes Elizabeth Ginsberg as its new Portfolio Management Associate. Elizabeth has already spent one year at CCLF through the Lutheran Volunteer Corps (LVC). The LVC volunteers that joined CCLF’s team in August are Chelsea Krummrey, Finance & Administration Assistant and Alyce Eaton, Program Assistant.
Donate to CCLF We need your financial support to provide targeted technical and financial assistance that empowers community-based developers to help create communities where people thrive. To support our work with a secure online donation, please visit http://cclfchicago.org/support-us
CCLF Board of Directors John L. Tuohy, Chair Chapman and Cutler (retired) Matthew R. Reilein, Vice Chair JPMorgan Chase & Co. Charles Walls, Treasurer ComEd Mohammed M. Elahi, Secretary Andes Capital Group LLC Thomas P. FitzGibbon, Jr. Talmer Bank and Trust Charles Daas Ravenswood Community Council Erik L. Hall Citigroup Lisa Herrera MB Financial N.A. CDC Edward J. Hoynes, CPA Community Accounting Services Ed Jacob Neighborhood Housing Services of Chicago Rafael M. León Chicago Metropolitan Housing Development Corporation Patricia Y. McCreary Consultant Raymond S. McGaugh, Esq. McGaugh Law Group Steven Quasny Consultant Nancy Radner Ounce of Prevention Fund Mark Spears The PrivateBank
Pictured: Ginsberg, Krummrey and Eaton
Kathryn Tholin Center for Neighborhood Technology
Credit Memos: CCLF lends $2.37 million in 3rd Quarter
Habitat for Humanity South Chicago Suburbs received a $400,000 revolving loan to bridge the gap between completion of work and reimbursement payments for 14 facilities that they acquired, rehabbed and sold in Park Forest and Lansing, IL. Thanks to Aaron Tucker, Holly Snow and Bradley Ritter of Paul Hastings LLP for serving as CCLF’s counsel on this transaction.
CCLF Staff Calvin L. Holmes President Dana K. Peterson Chief Operating Officer
Celadon Holdings LLC received an $89,500 mini-permanent loan to allow them to refinance one residential building in Greater Grand Crossing. Thanks to Sharone Levy and Kim Barton of Chapman and Cutler LLP for serving as CCLF’s counsel on this transaction.
Jane I. Ames Vice President, Finance & Administration
Ignatia Foundation received a $310,000 construction loan to remodel and expand its residential services facility in Avondale. Thanks to Mark O’Meara and Ryan Bower of Chapman and Cutler LLP for serving as CCLF’s counsel on this transaction.
Juan Calixto Vice President, External Relations
Proviso-Leyden Council for Community Action, Inc. received a $685,000 minipermanent loan to refinance existing debt on their headquarters in Maywood, IL. Thanks to Jeffrey P. Gray and Laura Kaplan of Edwards Wildman Palmer LLP for serving as CCLF’s counsel on this transaction. Chicago Rehabilitation Network received a $50,000 mini-permanent loan to move its corporate offices to a new location in downtown Chicago. RPT Development Group Inc. received a $190,000 construction loan to rehabilitate a residential two-unit building on the Near West Side. Thanks to Jennifer A. Kratochvil of Mayer Brown LLP for serving as CCLF’s counsel on this transaction. KMW Communities received a $218,000 mini-permanent loan to allow them to refinance three residential buildings in West Humboldt Park. Thanks to Kim Barton of Chapman and Cutler LLP for serving as CCLF’s counsel on this transaction. Rimland Services NFP received a $150,000 mini-permanent loan to make repairs to seven of their group homes for adults with autism in suburban Cook and Lake Counties. Thanks to George Houhanisin, Michael Boykins and Emily Knurek of McDermott Will & Emery LLP for serving as CCLF’s counsel on this transaction. Blue Chair Capital, LLC received a $150,000 mini-permanent loan to refinance two affordable rental properties in West Garfield Park and Washington Heights. Thanks to Alpita Shah and Larissa Leibowitz of Mayer Brown LLP for serving as CCLF’s counsel on this transaction.
Rob Rose Vice President, Lending
Mark Fick Senior Loan/Program Officer Wendell Harris Senior Loan/Program Officer Lycrecia Parks Senior Portfolio Management Officer Evelyn Turner Loan Closing Officer Kallie Rollenhagen Technical Assistance Program Officer Bettye Claggette Finance & Accounting Associate Elizabeth Ginsberg Portfolio Management Associate Lincoln Stannard Lending Associate Alyce Eaton Program Assistant Chelsea Krummrey Finance & Administration Assistant
Consultants Torrence Moore Senior Consultant - Special Initiatives Chelsi Cicekoglu Lender
Newsletter Credits The mission of the Chicago Community Loan Fund is to provide flexible, affordable and responsible financing and technical assistance for community stabilization and development efforts and initiatives that benefit low- to moderateincome neighborhoods, families and individuals throughout metropolitan Chicago.
Compiled by: Juan Calixto Alyce Eaton Printed by: Salsedo Press
@cclfchicago Contact us: info@cclfchicago.org