CHICAGO, MARCH 29, 2023 — CIBC today announced it has financed the 50th property under its CIBC Housing Initiative and will extend the program beyond its original $10 million investment in order to continue its commitment to strengthening neighborhoods through quality housing options.
The CIBC Housing Initiative launched in 2014 in response to the preponderance of vacant homes remaining in underserved communities following the 2008 financial crisis, and their adverse impacts on these neighborhoods. CIBC provides local developers with financing for the purchase and rehabilitation of vacant homes as well as access to resources to ensure success.
“Neighborhood stabilization and the promotion of economic development are pillars of the CIBC Housing Initiative,” said Shawn Beber, Senior Executive Vice President and Group Head, CIBC US Region, and President and CEO, CIBC Bank USA. “We are proud of the impact this program has had in responding to the community’s need for safe, stable and affordable housing.”
Under the program, CIBC has provided financing for the rehabilitation of homes in 24 Chicago neighborhoods and three Cook County suburbs, as well as one in Milwaukee. The 50th property in Chicago’s Auburn Gresham neighborhood is uninhabitable and will undergo a comprehensive rehabilitation that ultimately will create five bedrooms and three bathrooms with a fully finished basement.
The program is attractive to developers because it provides up to 80% in financing based on the as completed appraisal of the home. CIBC also helps developers with required legal fees, easing that burden.
“CIBC has done a commendable job providing solid financial solutions for our past and current projects,” said Alfred G. Lewis, Member and Manager, A-Tray Development, LLC. “Our CIBC team’s level of service sets a high bar for financial institutions looking to revitalize and invest in Chicagoland communities. Our relationship with CIBC has become more of a partnership."
Since the inception of the program, CIBC has worked closely with 19 developers — 12 of which are minority-owned or under minority leadership — who hire local workers. Rehabilitating these homes improves neighborhoods by removing blight, stimulates the local economy by providing jobs and moves these properties from a drain on resources to contributors to the local tax base.
“I have had the pleasure of working with CIBC on a number of projects and events,” said Matthew J. O’Shea, Alderman of the 19th ward of Chicago, whose community benefitted from one of the rehabilitated homes. “CIBC is dedicated to the communities that it serves, and its Housing Initiative deserves to be celebrated.”
As CIBC nears its original $10 million investment, the bank announced it would continue to work with developers and expand the program to new participants.
“Community impact is deeply rooted in CIBC’s culture,” said Beber. “We are proud to partner with developers who share our philosophy when it comes to investing in and addressing the critical needs of our city.”
