Cluster 2
High
Urban core of economically dynamic, larger metro areas
Gentrification
Moderate income
Bachelor's degree or higher
25-34 years old
Low unemployment
5+ unit & 50+ unit buildings
Built before 1950
High density & vacancy
New development of high density buildings
Prosperous urban core with older rental housing, but also recent new development. Loss of lower-income renters and increasing higher-income renters indicate displacement pressures and increasing exclusivity. Most frequently found in the urban core of economically dynamic and larger metro areas:
- Demand: This market type has the highest levels of renter households. Renters in this area are younger and highly educated. It has high levels of renters 25-34 and the largest increase in renters 25-34 since 2012. It also has low levels of older renters and largest declines in older renters since 2012. Renters also tend to have higher incomes with the highest levels of very high-income renters (more than 200% AMI). It also has indicators of displacement with the largest declines in lower-income renters (those earning less than 80% AMI) and largest increase in higher-income renters (those earning over 120% AMI).
- Supply: This market type has an older rental housing stock with a high share of rental housing built before WW2, but it has also seen new investment with a large increase in rental properties built since 2000. It has higher levels of rental units found in mid-sized 5-49 unit rental buildings. It also has the highest level of rental units in 50+ unit buildings and the largest increase in rental units on 50+ unit buildings, indicative of the type of new investment happening in this area.
- Affordability: This market type has low levels of affordable rental supply and has seen large declines in the lower-cost rental stock. However, because renters in this market type have higher incomes, there is an overall low share of cost-burdened renters. Given the higher cost of market-rate housing, affordability is more likely to be found in subsidized units, and compared to other clusters, this area has higher levels of rental housing found in project-based section 8 and public housing. However, these types of units make up a relatively small share of the housing stock.
Programs active in Cluster 2
Opportunity Investment Fund (OIF) Chicago
Cluster 1 Cluster 2The Opportunity Investment Fund (OIF), also referred to as the Mezzanine Debt Fund, is administered by Community Investment Corporation (CIC) a Chicago-based community development financial institution (CDFI). The program provides low-cost mezzanine debt to developers acquiring existing, operating rental properties in high-cost Chicago markets. Borrowers must commit to making at … Read more >
Acquisition Opportunity Program (AOP) Boston
Cluster 1 Cluster 2The Acquisition Opportunity Program (AOP) is administered by the City of Boston's Mayor's Office of Housing and enables developers to pre-qualify for acquisition funding of up to $100,000 per unit to compete in risking cost markets to preserve rental housing affordability. Pre-qualification requires demonstrated organizational experience, financial capacity, and long-term … Read more >
Property Tax Incentive for Affordable Rental Housing Chicago, Statewide
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Property Tax Incentive for Affordable Rental Housing is a statewide property tax incentive in Illinois, implemented at the county level through individual County Assessor's offices. In Cook County, the incentive is called the Affordable Housing Special Assessment Program (AHSAP). Properties must have seven or more residential units and involve … Read more >
Amazon’s Housing Equity Fund Nashville, Seattle, Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5In January 2021, Amazon launched the $2 billion Housing Equity Fund with the goal of creating and preserving 20,000 affordable homes across three of its hometown communities, Washington State's Puget Sound region; the Arlington, Virginia/National Capital region; and Nashville, Tennessee, within five years. In June 2024, the company extended the … Read more >
Boston Acquisition Fund (BAF) Boston
Cluster 1 Cluster 2 Cluster 6The Boston Acquisition Fund (BAF) is a public-private revolving loan fund established by the City of Boston in 2024 and administered by Massachusetts Housing Investment Corporation (MHIC), a CDFI. The fund finances the acquisition and preservation of rental units currently renting below market rates in Boston in rising cost markets. … Read more >
Navigator Pre-Development Loan Hartford, Pittsburgh, Washington D.C.
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Navigator Pre-Development Loan is part of a broader suite of innovative financing products designed to connect property owners with technical assistance and funding to implement energy efficiency and climate resiliency retrofits. Created by Inclusive Prosperity Capital (IPC), a nonprofit specialty financing intermediary, the product is implemented in collaboration with … Read more >
Built to Last Philadelphia
Cluster 1 Cluster 2 Cluster 3Built to Last is an energy efficiency and home preservation initiative coordinated by the Philadelphia Energy Authority (PEA), an independent municipal authority established by Philadelphia City Council in 2010. The program launched as a pilot in 2021 and serves owner-occupied properties whose owners earn below 200% of the Federal Poverty … Read more >
District Opportunity to Purchase Act (DOPA) Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5The District Opportunity to Purchase Act (DOPA) is a preservation tool administered by the DC Department of Housing and Community Development (DHCD) that grants the District of Columbia a right of first purchase when eligible rental properties are offered for sale. DOPA applies to rental properties with five or more … Read more >
Income-Eligible Multi-Family Retrofit Program (IEMF) Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Income-Eligible Multi-Family Retrofit Program (IEMF), administered under the Mass Save® collaborative of Massachusetts electric and natural gas utilities, provides no-cost or incentivized energy efficiency improvements to affordable multifamily properties. Eligible properties must have five or more units with at least 50% of units occupied by households at or below … Read more >
Low-Income Rental Classification (LIRC) Statewide, Minneapolis
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6Administered by Minnesota Housing, the state’s housing finance authority (HFA), the Low Income Rental Classification (LIRC) Program provides that qualifying low-income rental properties are eligible for property use classification that has a lower tax class rate thereby reducing the property tax obligation for a given property. This property use classification … Read more >
Multifamily Energy Savings (MFES) Regional, Chicago
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Multifamily Energy Savings (MFES) program is a utility-delivered energy efficiency initiative serving affordable multifamily properties in northern Illinois, administered jointly by ComEd, Peoples Gas/North Shore Gas, and Nicor. The program provides comprehensive, building-wide upgrades, including building envelope, HVAC, and domestic hot water systems, in both tenant units and common … Read more >
Multifamily Property Tax Exemption (MFTE) Statewide, Portland, Seattle
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6The Multifamily Property Tax Exemption (MFTE) Program is a statewide framework established by the Washington State Department of Commerce in 1995 to incentivize multifamily housing investment through temporary property tax exemptions on residential improvements, implemented by participating cities and counties. Property owners are exempt from taxes on residential improvements for … Read more >
Pathway Housing Fund (PHF) Nashville
Cluster 1 Cluster 2 Cluster 4 Cluster 5 Cluster 6The Pathway Housing Fund (PHF) is a $30 million private capital fund launched in 2024 by Pathway Lending, a Tennessee-based community development financial institution (CDFI). The fund is designed to preserve unsubsidized affordable rental housing across Tennessee that is at risk of market conversion due to gentrification and rising land … Read more >
Preservation of Existing Affordable Rental (PEAR) Pilot Chicago
Cluster 1 Cluster 2 Cluster 3The Preservation of Existing Affordable Rental (PEAR) Pilot Program was established by the City of Chicago in 2018 to preserve affordable housing in rising cost neighborhoods. The program provided zero-percent interest rate refinancing of private-sector debt on residential properties with six or more units, with the requirement that at least … Read more >
Property & Casualty Initiative (PCI) Loan Fund Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 6The Property and Casualty Initiative, LLC (PCI) is a statewide community loan fund established in 1999 under Chapter 259 of the Massachusetts Acts of 1998 by a consortium of Massachusetts-based property and casualty insurance companies. PCI provides financing for affordable housing, community services, economic development, and small business lending to … Read more >
Regional Naturally Occurring Affordable Housing (NOAH) Fund Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 6The Regional NOAH Fund is a revolving debt program administered by Massachusetts Housing Investment Corporation (MHIC), a community development financial institution (CDFI) founded in 1993, to support the acquisition of unsubsidized multifamily properties across Massachusetts. The fund provides senior and subordinate debt at below-market rates for terms of up to … Read more >
Rental Improvement Fund (RIF) Philadelphia
Cluster 1 Cluster 2 Cluster 3 Cluster 5 Cluster 6The Rental Improvement Fund (RIF) is administered by the Philadelphia Housing Development Corporation (PHDC) and provides loans to small property owners for health, safety, habitability, energy, and water efficiency repairs. Eligible borrowers must own no more than 15 rental units across no more than five properties. Loan amounts range from … Read more >
Small and Medium Multifamily (SMMF) Loan Program Minneapolis
Cluster 1 Cluster 2 Cluster 4 Cluster 6The Small and Medium Multifamily (SMMF) Loan Program is a partnership among Land Bank Twin Cities, the Local Initiatives Support Corporation (LISC), and the City of Minneapolis to preserve small and medium multifamily rental properties (2–49 units) in Class B and C buildings without existing government subsidy. The Land Bank … Read more >
Small Buildings Program (SBP) Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5The Small Buildings Program (SBP) is administered by the DC Department of Housing and Community Development (DHCD) Housing Preservation Unit and comprises two subprograms: the Small Housing Provider Grant and the Small Property Loan Program. The Small Housing Provider Grant provides up to $65,000 per unit, capped at $400,000 per … Read more >
Small Property Acquisition Fund (SPAF) Pilot Statewide, Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 6The Small Property Acquisition Fund (SPAF) is a statewide program administered by the Community Economic Development Assistance Corporation (CEDAC), a community development financial institution (CDFI), on behalf of the Massachusetts Executive Office of Housing and Livable Communities (EOHLC). The program supports nonprofit acquisition of small residential properties to prevent displacement … Read more >
The Life Initiative (TLI) Statewide, Boston
Cluster 1 Cluster 2 Cluster 3 Cluster 6The Life Initiative (TLI) is a Massachusetts-based investment fund established in 1999 under Chapter 259 of the Massachusetts Acts of 1998 and initially capitalized at $100 million for a 25-year period by life insurance companies. TLI provides a range of financing products, including predevelopment, acquisition, construction, bridge, and working capital … Read more >
Washington Housing Initiative Impact Pool (WHIIP) Washington D.C.
Cluster 1 Cluster 2 Cluster 4 Cluster 5The Washington Housing Initiative Impact Pool (WHIIP) is an approximately $115 million investment vehicle managed by JBG SMITH Impact Manager, a subsidiary of JBG SMITH Properties. The fund provides mezzanine/second trust financing, coordinates the placement of qualified 501(c)(3) bonds, and measures and reports on impact outcomes. WHIIP provides up to … Read more >
MSAs including Cluster 2
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