Woodlawn Construction Loan Fund
CIC offers low-cost construction loans for local owner-developers to rehab or build new homes in Woodlawn.
The Woodlawn Construction Loan Fund is part of the City of Chicago’s Woodlawn Housing Preservation Ordinance, which aims to protect Woodlawn residents from displacement and encourage affordable housing development and preservation.
Local, minority-led businesses with a history of positive work in Woodlawn and businesses committed to hiring local and minority contractors are especially encouraged to apply.
Multifamily Rental Product
Buildings with 5 or more units – rehab or new construction
- Interest Rate: 2.5% during the construction period
- Term: Up to 24 months
- Loan to Cost: Up to 90%
- Affordability: 50% of units provided at rents affordable at or below 80% AMI for 10 years; income verification at initial tenant move-in
- Security: Recorded mortgage lien
- Perm Debt: Provided by CIC at current rates (or third-party lenders can provide perm debt if borrower has lender commitment in advance of construction loan closing)
- Service Area: Woodlawn community area
Loan terms are subject to change. Call CIC for more information.
Single Family, 2-4 Unit For-Sale Product
Buildings with 1-4 units – rehab or new construction – intended for sale to owner occupants
- Interest Rate: 2.5% during the construction period
- Term: Up to 24 months
- Loan to Cost: 90%
- Affordability: Sale to homebuyers at or below 120% AMI
- Security: Recorded mortgage lien
- Rental Exit: Property can revert to rental at the request of the developer after six months of marketing a finished product. In such a case, the developer will need to refinance into a term debt product offered by CIC or another lender or otherwise take out the construction loan.
- Service Area: Woodlawn community area
Loan terms are subject to change. Call CIC for more information.
Program Resources
Program Partners
The City of Chicago and CIC developed the Woodlawn Construction Loan Fund under the City’s Woodlawn Housing Preservation Ordinance. The program is funded by investments and program support from Beverly Bank & Trust, Byline Bank, CIBC, Fifth Third Chicagoland Foundation, First Midwest Bank, JPMorgan Chase Foundation, TCF, and Wintrust Bank.
