HIT’s MidWest@Work Investment Strategy Announced
The HIT has developed a $2.1 billion investment strategy targeting the American Midwest. The HIT’s MidWest@Work is designed to spur economic development and job creation in areas hardest hit by job losses in the manufacturing sector. The strategy addresses many issues caused by the Midwest’s economic decline since the 1970s, namely job loss, blighted abandoned housing, and scarcity of investment capital.
MidWest@Work will work to reverse these trends through three avenues: investing in the creation and rehabilitation of multifamily housing, investing in the repair and renovation of vacant single family homes, and providing predevelopment and other unmet financing needs for community and economic development projects. The HIT’s wholly-owned adviser subsidiary, HIT Advisers, is in the process of creating a fund that will address this element, the Economic Development Fund.
The strategy’s footprint covers the states that border the Great Lakes, from Upstate New York to Minnesota and will concentrate on nine cities/metropolitan areas – Buffalo, Cleveland, Columbus, Detroit, Minneapolis, Milwaukee, Pittsburgh, Saint Paul, and St. Louis. The $1.2 billion of investment anticipated under the program will leverage an additional $900 million in capital to create a total economic impact of nearly $4 billion over seven years.
An article in the Associated Press announcing MidWest@Work highlighted the current need for this type of investment strategy in the Midwest. The story increased the exposure of the investment strategy and the HIT has received an overwhelmingly positive response from stakeholders in the nine cities. MidWest@Work was designed to help communities struggling with aging neighborhoods, divestment, and unemployment. HIT expects this strategy to create more than 25,000 total jobs, including over 9,000 union construction jobs, generating $1.4 billion in wages and benefits for residents.
For more than 30 years, the HIT has proven that investing in housing can create huge economic impacts for communities that reach beyond one single development. For example, since the HIT’s inception in 1984, it has made investments in 240 multifamily construction or rehabilitation projects in the Midwest with a total development investment of $4.4 billion. The total economic impact of the construction of these projects is nearly $9.3 billion, more than double the amount invested, generating $3.5 billion in wages and benefits for residents. HIT investments create a virtuous cycle attracting further investment in the communities where HIT projects are located. HIT’s many targeted investment strategies, including MidWest@Work, take advantage of this cycle, concentrating investment for a sustained impact.
Job and economic benefit figures are provided by Pinnacle Economics, Inc. and the HIT. Estimates are calculated using an IMPLAN input-output model based on HIT projections, project data and secondary source materials. In 2015 dollars.