In 1982, CMHDC is created as an instrumentality of the Chicago Housing Authority (CHA), and issues bonds exceeding $200 million to finance the creation of 2,100 rental apartments. In 1993, CMHDC refinances the bonds under an agreement with the federal government. The refinance, known as Financial Adjustment Factor (FAF) allows CMHDC to capture more than $20 million over 10 years to develop affordable housing. In 1997, the corporation is restructured as a 501 (c)(3) under new management to become a non-profit housing development entity with a mission to acquire and redevelop multifamily properties using the FAF funds to leverage private financing. CMHDC then begins an affordable housing program and targets its acquisition efforts in many areas of the City of Chicago, while reducing its participation in the redevelopment of public housing. A year later, CMHDC furthers its transition to a self-supporting entity by negotiating a fee-for-service agreement with the CHA. CMHDC sets a goal to reduce income from CHA to no more than 10% of its total budget within 5 years. Between 2000 and 2004, the organization grows from $18 million in assets to $40 million in assets with over 400 rental units and no longer receives operating support from the CHA. By the end of 2008, CMHDC reaches over $46 million in assets with 525 rental units.

The mission of the Chicago Metropolitan Housing Development Corporation (CMHDC) is to retain and develop properties with both affordable and market rate housing in Chicago. In order to maintain a balance between the two, we target areas vulnerable to affordable housing shortages, and then acquire multifamily buildings in need of improvement while identifying other opportunities to develop new construction.

The main and only focus of CMHDC is to create affordable housing. The primary mechanism we use is the private financing model whereby we provide an equity investment to leverage bank financing to acquire properties that will become mixed income developments. We then lease 75% of the units to low income renters and the remaining 25% of the units are leased to market rate renters. The majority of our portfolio or 423 units were developed using this model. Creating and preserving affordable housing using this model sets CMHDC apart from other non-profit developers because we have not relied on public financing to structure transactions. Over the last five years we have begun to utilize more and more the private/public financing model to preserve affordable housing. In using this strategy, we provide an equity investment that also leverages both bank and public financing to acquire, redevelop and preserve affordable housing. The balance of our portfolio, 102 units fit this category. CMHDC, on behalf of the CHA, developed a 40-year lease program whereby a developer enters into an agreement with the CHA to provide public housing units for 40 years in private developments. Not only did CMHDC develop the program, but we also participated in the first transaction, Mohawk North. Our participation allowed CHA to lease 16 units in this mixed-income development for 40 years to public housing residents. CMHDC also provided gap financing for 16 units at the Old Town Square development under a similar 40-year lease scenario. CMHDC also purchased on behalf of the CHA, 13 new townhomes in the Orchard Park development in Cabrini Green. These townhomes were then re-sold to the CHA at a discount. Lastly, CMHDC worked with CHA to acquire 16 units in the Domain Development in the Cabrini Green area. Because of our 501(c) (3) designation, CMHDC was able to raise capital through the donation tax credit program to cover the financing gap of the transaction. We have also begun to focus our efforts on the development of for sale, mixed-income housing. The Mark located in Uptown represents CMHDC's first foray into condominium development. In 2004, CMHDC partnered with Related Midwest to develop this new 38 unit condominium project. Four of the condominiums were sold to buyers through the City of Chicago's CPAN program. And another four units were sold to individuals at 80% of AMI through a program CMHDC created. CMHDC is holding a silent second mortgage on these four units for a period of 10 years in order to ensure that the units remain affordable to low-income families. In 2009, we began working with the South Suburban Mayors and Managers Association (SSMMA) to address the foreclosure crisis affecting the south suburbs of Cook County; and develop a program to mitigate this crisis using NSP funds from Cook County. Our role in this endeavor is both as an advisor and program administrator on behalf of the SSMMA.