Are We Making Progress?
by Kevin Jackson
We've seen two important new affordable housing
policies from the 5th floor this year: the passage of
the amended Affordable Requirements Ordinance
and the just-passed Affordable Housing Preservation
Ordinance.
Some reflection on both might reveal important next
steps for those of us in the advocacy community.
Many of us have been working on the concept of the
ARO for over 8 years now. The ARO as amended
upholds the principles of inclusionary housing
policies around the country - that booming real estate
markets create both opportunities and burdens - that
even people of modest means should benefit from city
development improvements - that the funds raised
from "in lieu" of fees can benefit housing for the poor
(as the units created do not).
Still, it is hard not to be somewhat discouraged by the
resistance along the way. The original ordinance
introduced by Ald. Toni Preckwinkle awarded density
(read: profit) to developers in exchange for affordable
units - that fact got lost in debates about mandates vs.
incentives. On the other hand, the timing of the Zoning
rewrite worked in our favor as the outpouring of
community pressure forced the downtown density
bonus as the precedent for what we have today.
In the end, it is good that Chicago finally has a policy
in place which requires affordable housing in
developments where the developer receives city
assistance. That doesn't negate the fact, however, that
thousands of affordable units could have been
created if this had been done years earlier.
Our next big challenge is to ensure that stakeholders
and decision-makers use their power to ensure
application of the ARO on every eligible development.
We raised the issue at the last Housing and Real
Estate Committee Hearing and many aldermen
understood that success of the ARO requires
unprecedented coordination between key City
Departments and committees. CRN will be offering
training over the next six months on this - and we'll do
our best to keep sunshine on the issue too with our
tracking system at http://www.chicagorehab.org/reso
urces/docs/policy/aro/arowatch.pdf.
While still in its infancy, I'm sure you'll agree
that we have to start somewhere.
The Affordable Housing Preservation
Ordinance recently passed out of Committee and City
Council. It lays out a set of procedures and policies
which builds on the Illinois Federally Assisted
Housing Preservation Act to require that Chicago
owners provide proper notice to the Commissioner of
Housing if they intend to alter federal affordability
restrictions on a rental property.
This City ordinance adds "qualified
entities/developers" to the "right of purchase"
category. This is a good policy in general that is
standard protocol in cities throughout the country. It
defines characteristics of qualified entities and
requires the timely public posting of notices and sales
agreements to be provided by the Commissioner.
This is enabling legislation. A definite step in the right
direction and a foundation to build upon - but largely
unfunded with the proper resources. We know that
there is sufficient development capacity and
willingness of CDCs to serve as "qualified entities"
and purchase these buildings. The key challenge
towards achieving impact will be whether the
resources exist to allow qualified entities to purchase
and improve these assisted buildings for the low
income households that reside there today and in the
future.
Progress? You be the judge.
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For 25 years, the Chicago Rehab Network (CRN) has
worked to further the development and preservation
of safe affordable housing in Chicago, and throughout
the state of Illinois.
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HOT STUFF: Waiting For Affordable Housing |
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When Bickerdike Redevelopment Corporation
announced it would be re-opening its Section 8
waiting list, some 600 people started lining up two
days before the pre-applications were handed
out. Hundreds waited in line overnight, some for two
nights, for a chance to apply for the affordable
apartments. Once families are on the list, waits for
Bickerdike's Section 8 units can be 1 to 3 years. The
non-profit's total Section 8 portfolio is 454 units. In
2004, approximately 1,500 people stood in line for 500
slots on a Bickerdike waiting list that had not been
opened in three years. Affordable housing, obviously,
remains an important issue for Humboldt Park and
Chicago residents.
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HUD Touts Green Initiative |
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HUD introduced July 20 its Green Initiative, a
nationwide pilot initiative to encourage owners and
purchasers of affordable, multifamily properties to
rehabilitate and operate their properties using
sustainable Green Building principles. These
principles comprise sustainability, energy efficiency,
recycling, and indoor air quality, and incorporate
the "Healthy Housing" approach pioneered by HUD.
The Green Initiative will focus on properties within
HUD's Section 8 portfolio, specifically properties in the
Mark to Market (M2M) Program administered by the
Office of Affordable Housing Preservation (OAHP).
What is Green Building? The real estate
industry, including the housing industry (and more
particularly the affordable housing industry), is
undergoing a fundamental shift toward Green Building
principles. Green Building is an approach to
sustainable development that is designed to result in
a property that reduces its impact on the environment,
costs less to operate, and improves the residents'
quality of life, according to HUD.
To date, the focus of green initiatives nationally has
been primarily on new construction rather than on
rehab, particularly the moderate level of rehab that is
typically associated with M2M properties. There are
fewer opportunities to Go Green in rehab, but the
opportunities are nonetheless significant and worth
pursuing, particularly when viewed in the context of the
M2M standard 20-year schedule of property repairs
and replacements, said HUD.
Green rehab practices should result in lower utility
costs that benefit HUD as well as residents. They
should also result in other benefits, generally in the
form of lower environmental impact. When rehab is
performed in a manner that meets both Green and
Healthy Housing principles, residents will benefit from
lower utility costs (to the extent the cost savings are
shared by the owner and residents), improved indoor
air quality, lower risk of pest infestations, lower levels
of allergens, and reduced risk of mold-related illness,
HUD said.
Why apply Green principles in the M2M Program?
The M2M Program offers a unique platform for
establishing a Green Initiative in the HUD affordable
housing portfolio because it can be implemented
within existing statutes, regulations, and authorities.
M2M affords the opportunity to implement Green
Building principles in a representative sample of M2M
restructurings involving properties that are already
undergoing rehabilitation, from within the larger HUD
portfolio, the agency said. As HUD's primary housing
preservation tool since its creation in 1997, OAHP has
restructured more than 1,600 projects nationwide
through the M2M program. These projects are
privately owned, HUD-subsidized (through Section 8),
multifamily properties, with approx 100 units each, on
average. In addition to rehabilitating properties, M2M
also resizes and restructures property debt to account
for market rent levels, to pay for rehabilitation and 20
years' of estimated repairs and replacements, and to
establish a financially viable project for the long term,
said HUD.
M2M provides an opportunity to test the impact of
Green and Healthy Housing principles in the existing
HUD-subsidized multifamily inventory by providing
modest incentives to owners and purchasers to
perform needed rehab and maintenance using Green
alternatives, and to collect ongoing data to validate
impacts on utility consumption and indoor air quality,
HUD said.
Questions or comments regarding the M2M Green
Initiative should be referred to Ted Toon, OAHP Deputy
Assistant Secretary (Theodore.K.Toon@HUD.gov, 202-
402-8386), and Carolyn Carpenter Porritt, OAHP
Headquarters Financial Transaction Specialist
(Carolyn.Carpenter.Porritt@HUD.gov, 202-402-8369).
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Member Spotlight: Car Sharing and the Center for Neighborhood Technology |
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I-GO Car Sharing is one among many exciting
projects taking place at the Center for Neighborhood
Technology (CNT), a non-profit that focuses on
sustainable development. I-GO is another way to
relieve some of the housing and transportation cost
burden faced by working families. I-GO is a CNT
initiative designed to make inexpensive and
environmentally friendly transportation more
accessible to Chicagoans.
Launched in 2002 with support from the city and
Department of Transportation as a pilot car-share
program, today more than 100 I-GO cars are located
in 23 communities. For a basic membership fee,
drivers can access energy efficient hybrid vehicles for
$6 per reserved hour, plus $0.50 per mile, at any of I-
GO location in Chicago. With gas, auto insurance and
maintenance prices soaring, I-GO has become a
valuable alternative to owning a car, with a savings of
up to $4,000 per year in transportation costs. With
gas, auto insurance and maintenance prices soaring,
I-GO has become a valuable alternative to owning a
car, with a savings of up to $4,000 per year in
transportation costs. According to CNT, 50 percent of
those who owned cars prior to joining sold their cars
after six-months of membership.
Since becoming the car sharing programs chief
executive officer, Sharon Feigon has helped increase
I-GO's capacity three-fold. Before heading the I-GO
program, Sharon was CNT's Manager of Research
and Development and concentrated on innovative
solutions to problems of urban sprawl.
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Click here for more about the Center for Neighborhood Technology |
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Aldermanic Briefing a Success |
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CRN invited city council members to a July 26 briefing
on affordable housing to acquaint lawmakers and
their staffers with affordable housing issues and to
discuss the role of non-profit community developers
and other community-based housing organizations in
addressing affordable housing needs. Some 25
Chicago aldermen and their staff members attended
the briefing.
Several new aldermen are beginning their
terms in the city council and many observers see a
renewed commitment to creating and preserving
affordable housing, especially with the passing of the
Affordable Requirements Ordinance and the
Affordable Housing Preservation Ordinance, which
supports the Illinois Housing Preservation Act, a state
law CRN helped pass in 2004. Through training and
technical assistance, CRN is committed to informing
policymakers on the current and emerging housing
issues in the city.
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CRN Hosts West Side Leadership Breakfast |
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CRN hosted leaders on Chicago's West Side in a
discussion of affordable housing issues June 21 at
the Garfield Park Conservatory. The meeting was
convened to broaden local leadership's
understanding of the housing stock on the West Side,
including the valuable stock of federally assisted
housing, and evaluate strategies for long-term
housing sustainability.
Leaders from a diverse range of organizations were in
attendance, including the Steans Family Foundation,
community-based nonprofits such as the Pilsen
Alliance and the Lawndale Business and Local
Development Corporation, local developers such as
Herron Development and Hispanic Housing
Development Corporation, and elected officials from
local aldermen to the office of Sen. Dick Durbin.
Alderman Ed Smith, Rev. George Daniels of First
Baptist and Steven McCullough of Bethel New Life
helped convene the meeting, which included a
presentation on local housing trends and facts, as
well as an open discussion about serious challenges
on the West Side, and strategies for reinvestment and
retention of valuable housing resources.
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Recent Federal Housing Legislation: SEVRA Passes the House |
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The 2007 legislative season witnessed aggressive
efforts to push a national housing agenda as
advocates moved quickly to take advantage of
changes in the congressional climate since last fall's
elections. The most recent major victory was the
passage of the 2007 Section 8 Voucher Reform Act
(SEVRA) through the House of Representatives.
SEVRA is a sweeping reform bill that contains
provisions that alter key components of the Section 8
program.
These include:
- A new voucher funding formula that will create
incentives for housing agencies to assist more
families and eliminate much of the $1.4 billion of
unused funds in housing agency reserves;
- Authorization of 100,000 new incremental
vouchers spread out over five years;
- Allowing housing agencies to use a greater
percentage of their funds (25 percent) towards project-
based vouchers, as opposed to tenant-based
vouchers;
- Greater targeting towards lower income
families;
- · Facilitating portability, or the ability of
families to take their vouchers to other districts,
without negative impact on public housing agencies;
- Allowing vouchers to be put towards
homeownership;
- Reducing burdens on housing agencies,
landlords and families through simplifying rent
calculation, inspection rules, and income
recertification;
- Expansion of "Moving to Work," a controversial
demonstration program that has allowed select
numbers of public housing agencies (including the
Chicago Housing Authority) the flexibility to experiment
with their development plans and bypass normal HUD
requirements and regulations.
These are only some of the important provisions
contained in SEVRA, a bill that advocates crafted to
incorporate diverse needs and build support for
across the spectrum - from HUD tenants to owners
and public housing administrators. Perhaps the
greatest accomplishment was SEVRA passed by an
overwhelming bipartisan majority of 333 to 83 in the
House. While new challenges await as the Senate
version of the bill is pushed, the recent victory offers
encouragement to housing advocates across the
country. For more information on other provisions in
SEVRA, or debates over existing provisions, contact
CRN or see the Center for Budget and Policy Priorities
website.
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Stay Tuned for Upcoming Trainings |
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Midwest Academy and CRN will offer a multi-day
training on preservation and tenant organizing in late
September. There are two seats
remaining! For more information, contact Gené
Moreno at CRN, at 312-663-3936.
CRN will also be offering additional trainings in
coming months, including "Using TIF Resources for
Affordable Housing" and "Tracking the Affordable
Requirements Ordinance and Making It Work for Your
Neighborhood."
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Takin' Note |
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Congratulations to Melissa McDaniel, the new
executive director of the North River
Commission.
Melissa became executive director after working as
NRC economic development specialist for the past
four years. While North River Commission has largely
focused its recent energy on economic
development, Melissa plans to put more emphasis on
preserving affordable housing in her organization's
target area.
Lawndale Christian Development Corp.
invites you to celebrate the grand opening of
Gideon Homes, one of the former
Lawndale Restoration properties on Wednesday, Aug.
8, 10-11 a.m., at 3242 W. Douglas Blvd.
Refreshments will be provided, but please RSVP to
773-762-8889, ext. 45.
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Job Opportunities |
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If you are looking for new opportunity
several organizations are seeking staffers.
Heartland Housing
http://www.heartlandalliance.org has two
openings, director of property management and real
estate development assistant. Claretian
Associates is seeking a
New Communities Program
director. ... Access Living of Metropolitan
Chicago, a center for independent living, seeks a
full-time community development organizer to
develop and implement an organizing campaign to
further fair housing for residents with disabilities in
public assisted housing. Cover letters and resumes
may be faxed to the Manager of Administration at (312)
787-3866, sent via e-mail to
nanderson@accessliving.org.
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