Cincinnati approves addition to LISC grant pool

More money will become available for the pre-development of market-rate housing thanks to an ordinance passed by Cincinnati City Council.

The ordinance allows the Cincinnati Development Fund to transfer $225,000 of its $1 million in Cincinnati Housing Development Fund LLC Initial Restricted Purpose Grant funds to the Local Initiatives Support Corporation's (LISC) Recoverable Grant Pool.

LISC will combine this grant with $225,000 from the United Way of Greater Cincinnati and their own $225,000 match.

The recoverable grant pool provides forgiveable loans to developers and non-profits of between $5,000 and $100,000 at 0 percent interest for a maximum term of 24 months, with repayment due at the earlier of the maturity date or the close of construction financing.

Funds are restricted to market-rate development and can only be used for:

* The cost of an option to purchase property to ensure site control during predevelopment
* Architectural, engineering, or site planning
* Fees for construction estimates
* Legal and accounting expenses
* Environmental reviews, appraisals and market studies
* Application fees for permits and for public financing

LISC recoverable grant funds have been used for such projects as the Villages of Daybreak in Bond Hill, Jonathan Meadows in Evanston, Community Views in Over-the-Rhine, Price Hill's Cedar Grove program and scattered-site projects by Cincinnati Housing Partners and Working in Neighborhoods.

Previous reading on BC:
LISC grant could fund market-rate housing (6/17/08)