City and County Announce Private Fund to Advance Affordable Housing
Columbus, Ohio -- The City
of Columbus, along with Franklin County, corporate partners and The Columbus
Foundation, announced a $100 million Housing Action Fund to address the need
for affordable housing in Franklin County. The fund will provide a flexible
source of capital dollars managed by the Affordable Housing Trust which will
offer low-cost loans to developers who commit to specific affordability requirements
in order to preserve and increase the number of units in Franklin County. These
funds, in addition to the $50 million in bond money approved by Columbus voters
in May, represent the foundation of a comprehensive community approach to
filling the gap that was identified through the work of the Affordable Housing
Alliance of Central Ohio.
“We know that more than 54,000 people in central Ohio live at or
near poverty and spend more than a half of their income for housing. As the
city and region continue to grow, we must make sure that residents who work in
the region can afford to live here, too,” said Mayor Andrew J. Ginther. “I am
grateful to the coalition of private and public leaders worked to create an
innovative financial solution to address this need.”
The new fund is unique in its diverse mix of investors aligned
with a shared purpose and commitment to the community. Founding investors
include:
- Affordable
Housing Trust for Columbus and Franklin County
- Columbia
Gas/NiSource Charitable Foundation
- The
Columbus Foundation
- Fifth
Third Bank
- Heartland
Bank
- Huntington
National Bank
- L
Brands
- Nationwide
- Park
National Bank
- PNC
“If we are committed to providing a solid foundation for
families to thrive in Columbus, then we must start with affordable housing,”
said Columbus City Councilmember Shayla Favor. “This is just the beginning. I
am proud and humbled by the collaborative nature and spirit of community that
reverberates throughout the City.”
“Affordable housing is one of the great challenges facing our
community. Franklin County is thriving, but we’re not a success unless
all of our residents can afford to live here,” said Board of Commissioners
President Marilyn Brown. “We remain committed to supporting affordable
housing for our residents, and that’s why the county puts nearly $17 million
toward this issue each year. We are excited about what today’s
announcement means for this community as we move forward with the private
sector to improve affordable housing options across Franklin County.”
The Housing Action Fund will offer quick-strike and longer term
dollars to support organizations committed to affordable housing in a very
competitive market. This fund gives the City of Columbus and Franklin County
the ability to fund housing development, home repair and modification, and
targeted renter assistance.
“We are honored to stand alongside all the investors, inspired
by the recent call to action from our Mayor and County Commissioners, to ensure
our economic tool kit includes private dollars that can be repeatedly leveraged
to create more safe, dignified and affordable homes for our community,” said
Steve Steinour, President and CEO of Huntington National Bank, who led the
effort in gathering founding investors. “This is a significant opportunity
for banks, foundations and corporations in central Ohio to join in partnership
with our City and County to advance a highly replicable model and innovative
source of capital needed to ensure more of our families have a place to call
home.”
“This is an historic investment into our community that will
address a critical need today and pay dividends for generations to come,” said
Doug Kridler, President and CEO of The Columbus Foundation. “With Franklin
County projected to grow by another 200,000 people to a population of nearly
1.5 million by the year 2050, by collectively supporting housing affordability
in this way now, we have the opportunity to grow in a more inclusive way
throughout the rest of the 21st century.”
According to a BIA study, there are 8,000 units built each year
in Columbus. In order to meet the needs of Franklin County and Columbus
residents this number must increase to 14,000 units per year. Through this
fund, an additional 2,150 units of mixed-income rental housing will be able to
be created and preserved.
“The Affordable Housing Trust for Columbus and Franklin County
is proud of our collaboration with the city, county and community partners
establishing the Housing Action Fund, which will leverage the community’s
investments to build and preserve affordable housing,” said Robert Weiler,
chairman of The Robert Weiler Company and chairman of the Board of Trustees of
the Affordable Housing Trust, which will underwrite and approve loans issued by
the fund.
"The Affordable Housing Alliance is so gratified that
community leaders at all levels understand both the magnitude of the affordable
housing gap and the benefit of affordable homes for all of our residents,” said
E.J. Thomas, Chair of the Affordable Housing Alliance. “This commitment of
significant new public, private, and philanthropic resources achieves the
funding goal in the Alliance 3-Year Start-Up Plan and puts us solidly on the
path to meeting the Franklin County affordable housing challenge.”
The fund will provide below-market loans to for-profit and
non-profit developers. All properties financed by the fund are required to have
an affordability commitment and strategy. The fund will give priority and
provide incentives to projects that average 60 percent AMI rents or below, or
less than $1,200 a month for a three-person household.
###