the development of affordable housing
many poor neighborhoods, single and multifamily residential buildings
have decayed as a result of neglect by absentee landlords and the
inability of local property owners to secure financing for home
improvement. Development of affordable new or renovated housing
can be the first step in community revitalization.
number of CDFIs make low-income housing a priority. But the high
cost of multi-unit housing projects often necessitates finding a
bank partner who will put up most of the money. The role of the
CDFI in this partnership is to take most of the risk by financing
preliminary phases of development and giving the bank priority in
recovering collateral in case of foreclosure. These loans are usually
repaid with a combination of rental income and government subsidies.
Braithwaite, a resident of the south side of Chicago, rehabilitates
and manages apartment buildings with financing from South Shore