Business and community leaders are putting $100 million into a new "Housing Action Fund" to encourage the development of affordable housing in Franklin County, officials announced on Monday.

Financed entirely by private-sector contributions and investments, the fund will offer low-cost loans to for-profit and nonprofit developers who commit to certain affordability requirements in their rental pricing.

Columbus Mayor Andrew J. Ginther said Monday that more than 54,000 people in central Ohio live at or near poverty and spend more than half of their income for housing.

"We must make sure that our neighbors who live in this region can afford to live here too," Ginther said Monday at a North Linden event detailing the effort.

The fund is to be managed by the Affordable Housing Trust for Columbus and Franklin County. Steve Gladman, president of the trust, said the new fund will finance both new construction and rehabilitation or upgrades of existing properties.

"Developers are looking at various models," he said.

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City and county officials expect that the fund will lead to the creation of at least 2,150 additional units of rental housing. All rents should be affordable to residents with incomes at or below 120% of the county's area median income as determined by the U.S. Department of Housing and Urban Development, which is about $93,600 for a family of four.

At least 51% of the units are to be affordable at 80% or below of the county median — $62,400 — for a four-person household — while the fund will give priority and incentives to projects that average 60% or below of the median, or $46,800.

"We're looking at housing that's affordable. That's typically measured as no more than 30% of your income," Gladman said.

But Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, said there needs to be more discussion about other ways to address the issue, including rent subsidies.

"Let's not be overly optimistic," Faith said after Monday's event. "It's a loan." And banks expect loans to be paid back, with interest, he said.

Among those contributing to the fund are Huntington National Bank, Fifth Third Bank, the Columbus Foundation, Heartland Bank, PNC, Nationwide, NiSource, L Brands, and Park National Bank.

Steve Steinour, president and CEO of Huntington National Bank, led the effort to gather banks to participate in the fund.

"Nothing has ever been done of this size in Columbus," Steinour said on Monday.

The announcement comes just more than a month after Columbus voters approved bond packages that included $50 million for affordable housing.

Steinour said he suggested this new effort, work on which began a year ago, to help nonprofit groups.

"It's important for us how the economy and neighborhoods go here, the health and vitality of the neighborhoods we serve," Steinour said.

Monday's event was held on a lot where nonprofit developer Homeport plans to build 45 apartments and five single-family homes. The one- and two-bedroom apartments would be available to people earning from $32,100 to $45,840.

Ginther said that it is important to get started on affordable housing efforts now unlike other cities such as Seattle and Austin, which have boomed and had to play catch up with such housing.

Steve Schoeny, director of the Columbus Department of Development, said the idea is for the fund to be both nimble and flexible so that projects can get underway quickly. No particular areas of the county will be targeted, and there is not a focus on specific demographic groups, such as seniors or families with children.

"There are needs everywhere," Schoeny said. "I can't tell you the list of communities that are expressing interest, but you will be shocked by the breadth of communities that want to participate in this discussion about affordable housing."

Housing advocates have long agreed that fast-growing Franklin County falls short on affordable housing. The city said a Builders Industry Association study shows that about 8,000 units are built each year in Columbus, far below the 14,000 needed across the city and county.

rprice@dispatch.com

@RitaPrice

mferench@dispatch.com

@MarkFerenchik

