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Special Hearing on Olympic Community Benefits Ordinance for Olympic Village
The City Council's Committee on Finance
addressed the topic of community benefits and
the 2016 Olympics last Friday, March 27, in a
special hearing of the Committee on Finance. A
community legacy ordinance from Alderman Toni
Preckwinkle was deferred from the prior week's
Finance meeting to allow for the newly
expanded advisory committees to the 2016
Olympics to complete their work and offer
recommendations.
At the meeting, a new ordinance in the form
of a Memorandum
of Understanding (MOU) incorporating the
recommendations of the Outreach
Advisory Councils was presented and
passed unanimously by the finance committee.
This now goes to the City Council and to the
IOC.
We appreciate and commend the dedication of
the advisory committees' sincere efforts to
building a full legacy agenda that embraces
meaningful social impacts. In particular, we
recognize the risk-taking and tireless
leadership of KOCO ( Kenwood Oakland
Community Organization), CEO and Alderman
Preckwinkle in advancing the community
benefits agreement concept. The MOU in terms
of affordable housing lacks specificity -
even the inclusion of the laudable 30%
affordable housing in the Olympic
Village is more a goal-based target with
funding contingencies rather than a firm
commitment with specific income targets
required of the developer. This points to
the underlying tension with the
Village--balancing what a private developer
desires in terms of risk and what the
community needs in terms of housing
opportunities for the less well off. In
other words, who are we building for?
Importantly, the affordable housing committee
trained its intent beyond the Olympic Village
proper and embraced a community wide housing
vision that would start with the principle of
no displacement. The advisory committee
offers workable solutions to this concern by
recommending among other things expanded use
of the Chicago
Community Land Trust and circuit
breakers. For the concept of the Land Trust
to work it needs to be employed immediately;
otherwise, a speculative market will
undermine the best of intentions and will be
further exacerbated if the Olympics are
announced and nothing has preceded the
announcement. As we first documented last
Spring the increase in rents will rapidly
displace residents ( see Olympics
and Chicago Neighborhoods). That is the
challenge to the city's 2016 Bid:
Implementing the MOU needs to begin now with
accountability and regular progress reports
to the public.
For our part, we will
continue at CRN to put forth ideas, forums
and technical assistance to foster, as has
been our mission for thirty years, community
empowerment and development without
displacement.
City Closer to State Financial Guarantee
for Olympics
In Springfield, the Illinois Senate passed
Senate Bill 2016 [Full
text] paving the way for a $250
million guarantee from the State to help
support the City of Chicago's preparation for
the Games if it wins the bid. The Bill also
creates the Chicago Olympic Public Safety
Command (COPSC) to engage in security and
public safety if Chicago is selected as the
host city for the 2016 Olympic and Paralympic
Games and other provisions to help move the
bill forward. In the process of passing the
bill, a Housing Affordability Impact Note was
filled by IHDA. [Track
Bill status].
The bill also
establishes a monitoring body to oversee
diversity in
hiring and contracting opportunities. This
oversight committee will have 23
members: the
Governor, President of the Senate, Minority
Leader of the Senate, Speaker of the House,
and the Minority Leader of
the House will each get 2 appointees; five
will be appointed by the Mayor; five
from the Outreach Advisory Council; and one
representative from each of the three
agencies hosting an Olympic event:
Metropolitan Pier and Exposition Authority,
The Chicago Park District, and UIC.
TIF Sunshine Amendment, Stimulus Projects
Hearings Deferred
The votes on two important city issues were
postponed after each proposal
sparked several hours of deliberation from
City Aldermen.
The TIF
Sunshine Amendment was heard at the
joint meeting of the Committee on Economic,
Capital and Technology Development and
Committee on Finance.
The ordinance, sponsored by Alderman
Waguespack and Alderman Flores, aims to make
TIF Redevelopment Agreements more accessible
to the public by expanding reporting online.
The newly-formed
Department of Community Development will
be in charge of keeping and
disseminating the records.
The move for TIF reform was prompted by the
recent debacle concerning the Republic
Windows and Doors Company. Located in Goose
Island, Republic abruptly closed its doors in
December 2008 giving only three days notice
to its workers and sparking a labor dispute
that made national news. The company
received $9.6 million in TIF subsidies in a
1996 agreement. At issue was whether the
company fulfilled the requirements stated
under the agreement such as job creation and
other community benefits. But since the
agreement had expired in 2006, the city had
little standing to hold the company accountable.
The ordinance proposed by both aldermen is a
step toward increasing oversight and
accountability in TIF Agreements. TIF is a
major source of local funding for affordable
housing as well. In addition to direct TIF
assistance, housing developments receiving
any TIF money must comply with an
affordability requirement to set-aside 20% of
the units for affordable housing. These
requirements, along with others such as job
training and job creation, serve as a way to
provide benefits to the community in exchange
for public investment.
Alderman Laurino, chair of the Economic
Development committee postponed the vote in
order to allow for sufficient review of the
issues raised at the meeting. A contentious
point in particular was the cost and capacity
of the Department of Community Development to
uphold these new reporting requirements and
whether these costs are considered
TIF-eligible expenses.
No date has been set for the follow up
hearing but the ordinance's sponsors,
Aldermen Flores and Waguespack, hope to have
the ordinance passed next month.
The City
of Chicago Stimulus Projects were
debated at the joint meeting of the Committee
on Budget and Finance on March 19th. With
hundreds of millions of dollars coming
to the city, many communities hard-hit by the
recession are hoping these new resources are
able to make a significant impact towards
economic recovery. But the city's aldermen
expressed disappointment at last month's
regular City
Council meeting over what appears to be a
less than forthcoming selection process for
the projects that will be receiving stimulus
money--with a resounding 43-7 vote in support
of a resolution
by Alderman Pat Dowell to
release a city project list.
Before the resolution was heard in the
Committee, however, the city released its
stimulus
project list and the public got a
first look at what city plans to do and the
communities that will benefit. At the
Committee on Budget meeting held on March
19th, some aldermen expressed concerns
that dollars meant for economic recovery
aren't going to communities who need it most
and do not address the critical
infrastructure needs of the city.
Alderman Carrie Austin, Chair of the
Committee on Budget, suspended the rest of
the meeting, held the vote and public
comments until a follow up meeting can be
scheduled.
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| Recovery Act Passed; Housing Advocates prepare for stimulus dollars |
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On February 17th, President Obama signed The
American Recovery and Reinvestment Act in to
law, setting the stage for the infusion of
$787 billion in stimulus monies to states and
municipalities in an unprecedented effort
jumpstart an ailing economy. Billions of
dollars are making its way to Illinois and
with it comes the opportunity to create and
preserve hundreds of affordable housing.
According HUD, Illinois will receive nearly
$540 million for housing programs including
formula and competitive grants and the City
of Chicago will receive approximately $250
million for housing. (CRN
ARRA matrix )
In addition, ARRA authorized a second
Neighborhood Stabilization Program which,
unlike the first NSP passed in July 2008,
will be administered competitively. The State
is expected to receive an estimated $88
million in NSP funding sometime this year.
The recovery package also promotes energy
efficiency retrofits, green technology and
investments. The package includes a new
program that will fund energy retrofits and
investment in green technology in
federally-assisted housing. This program
will be administered by HUD's Office of
Affordable Housing Preservation. Details of
funding have not yet been released.
Stimulus Program Links
CHA will receive largest sum of stimulus money
A generous portion of the recovery funds will
go to the Chicago Housing Authority who will
receive nearly $144 million of the Public
Housing Capital Fund. The fund's main
objective is to address the capital needs
backlog, rehabilitation, improvements, and
energy retrofits in public housing. However,
the
CHA sought approval to demolish six
buildings with nearly 600 units
in the Harold Ickes Homes with
stimulus money. The demolition of buildings in
the Ickes Homes conflicts with CHA planning
documents which indicate that Ickes Homes
would be rehabbed.
CRN raises the issue that the stimulus
dollars are best used to preserve
affordability especially during this economic
crisis. Demolition of public
housing without a replacement plan in place
provides no public benefit and little
economic stimulus.
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| City and State Neighborhood Stabilization Programs Officially Begin |
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The City of Chicago and Mercy
Portfolio Services released the Request
for Qualifications for the Neighborhood
Stabilization Program. Responses will be
accepted on a rolling basis beginning on
April 13, 2009.
Download
the RFQ
For more
information, visit the City
of Chicago NSP website.
The Illinois Department of Human
Services and
Illinois Housing Development Authority
also has
launched the State Neighborhood Stabilization
Program. Applications are due May 4, 2009
at
2:00 pm. For more information, visit the Request
for Proposal/Application website
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| CRN Celebrates Community Development Leaders |
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Join us for a reception honoring graduates of
the 2007 and 2008 Community Development
and Empowerment Series!
When: April 20, 6:00pm to 9:00pm
Where: Gibson's, 1028 North
Rush Street
RSVP to CRN 312-663-3936
Cost: $25 (Pay online
or at the door)
Download the Invitation
Underwritten by:
Virmac Services Inc.
Sponsors (in formation):
Citi Foundation
Chicago Community Loan Fund
Holsten Development Corporation
Landon Bone Baker Architects
The Private Bank
National Equity Fund
Local Initiatives Support Corporation
Supporters (in formation):
Brinshore Development
Chicago Metropolitan Housing Development Corp.
For sponsorship opportunities, please contact
CRN at 312-663-3936.
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| The Community Development and Empowerment Series Workshops Starts on April 2nd! |
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Register Now for CRN's
Empowerment Series workshops. The series,
in its 14th year, exposes participants to the
entire process of affordable housing
development and management. Participants who
complete the entire eight workshop series will
receive a certificate.
Contact Andy Neilsen at andy@chicagorehab.org
to register.
More information
PHOTO: Students learn about project and
construction management during a site visit
to a development under construction in South
Chicago.
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| Bethel New Life celebrates expansion of A.I. Industries with New Markets Tax Credits |
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In 2007, Bethel was approached by Jane Addams
Resource Center to assist in renovating an
industrial building in West Garfield Park for
use as a manufacturing incubator and teaching
facility. Bethel financed the $780,000 rehab
with New Market Tax Credits and today the
building holds four business, including A.I.
Industries which Bethel was pleased to
provide a $200,000 loan for the expansion of
their garment manufacturing business.
Bethel New Life is able to support projects
for organizations like JARC with a $4
million dollar allocation of New Market Tax
Credits it received in 2004. With this
allocation, Bethel has assisted several
projects that benefit the West Garfield Park
community including the $1.3 million to help
develop the 23,000 square foot Bethel Center
on Lake and Pulaski. Anchored at a major
transit stop,
the LEED Gold-certified Center houses employment
services and child development facilities as
well as a technology community center and six
commercial storefronts.
Bethel also used approximately $1 million
dollars, leveraging an additional $2.2
million, to build 337 units
of affordable housing in West Garfield Park.
Bethel credits its investment partners, Park
National, Midwest Bank, and Private Bank for
their generous support even during these
challenging economic times. New Market Tax
Credits is a key tool in the recovery of our
communities. Bethel New Life plans to apply
to become a Participating Entity under the
City's Neighborhood Stabilization Program and
use the remaining allocation to directly
address the foreclosure crisis by using the
funds to acquire REO homes.
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| State Legislative Updates |
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Thus far, the Illinois General Assembly has
put forth a plethora of housing related bills
covering several main themes: foreclosure
prevention and counseling and green housing.
In response to the foreclosure crisis in
recent years, a range of legislators filed
bills to curtail foreclosures and provide
additional counseling to prevent further
foreclosures. House Bill 3863 [Full
text], sponsored by Rep. Will Burns, is
moving quickly. The Bill enhances
foreclosure protection to renters. In 2008,
nearly one-third of foreclosure filings in
Chicago were on 2-6 unit buildings. The Bill
would guarantee a Notice of Foreclosure to
tenants and clarify eviction procedures.
(More information about HB 3863 and how to
take action in Housing
Matters.)
House Bill 3806
[Full
text], sponsored by Rep. Marlow Colvin,
would create a deferment period lasting for
one year after the passage of the bill.
During this time, homeowners who were being
foreclosed upon could pay a deferment fee to
their lender in order to stay in their homes
and have additional time to renegotiate the
terms of their loan. The deferment period
would apply to those who are victims of
sub-prime or negative amortization loans and
whose family income is less than $250,000.
Green building and energy efficiency is
another priority this legislative session.
Rep. Julie Hamos introduced HB 3987 [Full
text] which amends the Energy Efficiency
Commercial
Buildings Act to include residential homes in
the existing energy efficiency requirements.
The bill outlines energy efficiency
guidelines that local units of government may
adopt. The bill does not require local
government units to adopt the guidelines but
does specify that if any guidelines are
adopted they must be the ones outlined in the
bill.
Housing also has a place within the budget
process. On Wednesday, March 18th, Governor
Quinn presented his budget proposal to the
General Assembly. Governor Quinn's budget
includes $25 million to the Department of
Commerce and Economic Opportunity to be used
as grants and loans to build and rehab
affordability housing. The budget reflects
additional funding that will be coming
through IHDA and other departments as a
result of the American Recovery and
Reinvestment Act. The complete operating
budget and capital budget are each available
online.
The Illinois House Democrats are holding a
series of Capital Budget hearings. Upcoming
hearings in the Chicago area is as follows:
- 4/8/2009 - Simeon Career Academy
Auditorium
8147 S. Vincennes Ave.
Chicago, IL 10 a.m.
- 4/16/2009 - Austin Town Hall
Auditorium
5610 W. Lake St. Chicago, IL 10
a.m.
- 4/16/2009 - Advocate Illinois Masonic
Medical Center Olson Auditorium
836 W.
Wellington Ave. Chicago, IL 6 p.m.
Both houses of the General Assembly will be
home during the legislative Spring Break from
April 6th through 17th. This is a great
opportunity to try to meet with your Senator
or Representative to discuss specific bills
or issues in your district. To learn more
about meeting with your legislator and
lobbying check out CRN's lobbying
tool kit for more information.
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| Help for Homeowners in Foreclosure |
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The Department of Treasury has set up a
website with a self-assessment tool to
determine eligibility in the Making Home
Affordable program. Visit http://www.makinghomeaffordable.gov
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| Cook County Assessor launches initiative to mitigate foreclosure impacts |
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The foreclosure crisis continues to have
detrimental impacts on property values
throughout Cook County. Assessor James
Houlihan is addressing this issue by
launching a new initiative to assess the
effects of foreclosures on property values
with the goal of developing new strategies to
improve the assessment process and mitigate
the impact of the crisis on property values.
The initiative will be a partnership between
the Assessor's Office, data consulting firm
RW Ventures, and University of Chicago Harris
School of Public Policy professor Christopher
Berry. The MacArthur Foundation is
supporting the project under its foreclosure
prevention initiative.
More Information
CCAO
Press Release
In the News
ABC
Local news
Chicago
Sun-Times
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| CRN Analysis of DOH 4th Quarter Report |
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CRN presented its analysis of the 4th Quarter
2008 Department of Housing Quarterly Report
at the Committee on Housing and Real Estate
meeting on March 17th. The report marks the
final quarter of the city's third Five Year
Plan for Affordable Housing, Build,
Preserve, and Lead.
CRN extends our heartfelt thank you to our
community-to each and all of you, the
community developers, activists and service
providers, to the leaders in government and the
financial and philanthropic sectors-who have
participated in the success of Build,
Preserve, and Lead. Through our
collaborations and advocacy for affordable
housing we have quite a number of
accomplishments to build upon such as the
Downtown Density Bonus, the Affordable
Requirements Ordinance, the Illinois
Preservation Act and City Preservation
Ordinance, the Rental Subsidy, and the
Chicago Community Land Trust. These are the
resources and policies that lay the
foundation to value affordability and create
community.
At the hearing, Alderman Shiller recommended
that the the Department produce even more
detailed quarterly reports in light of the
current housing market. Because aldermen use
these quarterly reports it is beneficial to
expand the reports to clarify what has been
preserved and what are the pipeline projects
since the still unstable market can impact
project plans over the course of
construction. The merger of Planning
activities with the new Department of
Community Development also provides an
opportunity to enhance the quarterly reports.
We begin the next Five Year Plan during the
country's most challenging housing
environment in recent memory. CRN calls on
the Department not to lose sight of the real
goal to create and preserve affordable
housing for the most vulnerable residents of
Chicago.
Download
the Full CRN Analysis Here
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| April Recess is Near! Schedule a Meeting with Your Representative |
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During the first two weeks of April, April
6-17th, most members of Congress and the
Illinois General Assembly will return
back to their home state and districts and
visit with
constituents. As April recess quickly
approaches, begin to schedule meetings with
your Representatives and Senators now.
As a housing advocate, you should lobby your
delegation--the experience and
information you can provide on the housing
situation in your Member's district is very
valuable to him or her. In addition, this
meeting allows an opportunity for your
Representative to become familiar with your
organization and the work you do.
More information
Key Committees
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| Network NewsMakers and Upcoming Events |
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- Chicago Community Land Trust
annual meeting will be on April 2nd from 5-7
at Northern Trust (50 S. LaSalle B6 Assembly
room). RSVP to chicagoclt@gmail.com.
CRN Board members, Patricia Abrams and
Guacolda Reyes, were also recently
reappointed to the Community Land Trust Board
of Directors.
- The Woodstock Institute will hold its
24th Annual Community Reinvestment
Reception and release of the Community
Lending Fact Book on Thursday, April
2, 2009 at 4:00-6:00 p.m. at the
Federal Reserve Bank of Chicago, 230
S. LaSalle, 3rd Floor. RSVP will be
required for building access. Please bring
government ID. Contact (312) 368-0310 to
RSVP.
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The City of Chicago Department of Procurement
Services will hold a second workshop on the
federal stimulus. The workshop will focus on
Road Work, Street resurfacing and Demolition
Construction Contracting Opportunities
When: Saturday, April 4, 2009 9:00
a.m. -11:30 at Central West Satellite Center,
2102 West
Ogden, Chicago, IL
Download
Registration Information
Congratulations to Angela Hurlock and
Claretian Associates for receiving the
NHS Neighborhood leadership award!
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| Help Build The Network! |
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The Chicago Rehab Network is the oldest and
largest coalition of non-profit community
developers and practitioners in the Midwest.
CRN works to provide a
foundation for new
strategies for effective policy,
communications, training and technical
assistance to support the development and
preservation of affordable housing across
Chicago.
You can support our work by spreading
the word about CRN or by making a donation.
Click Here to Support CRN
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| This publication is generously supported by the Local Support Initiatives Corporation and the Chicago Community Loan Fund |
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