Economic Recovery and Legislative Updates
City of Chicago opens applications for Tax
Credit Assistance Program
The City of Chicago Department of Community
Development has begun receiving applications
for funding under the Tax Credit
Assistance Program (TCAP) and Tax
Credit Exchange Program (TCEP or "Section
1602") (View
press release). The funds were
authorized under the American Recovery and
Reinvestment Act of 2009 to help fill the
financing gaps in Low Income Housing Tax
Credit projects impacted by the credit
crunch.
At this time, the City is only accepting
applications for projects that have already
been selected for an allocation of Low Income
Housing Tax Credits from the Department of
Community Development (DCD) or the Illinois
Housing Development
Authority.
The due date is on
September 30, 2009 at 4:30 pm. More
details can be found by visiting www.cityofchicago.org/recovery
or by contacting William Eager,
Deputy Commissioner of Development Finance,
at (312) 744-9475, or Tracy
Sanchez at (312) 744-0892.
Olympics guarantee passed, 49-0
On September 9th, the City Council
unanimously voted to back the 2016 Olympic
Bid, approving an ordinance that would pledge
unlimited financial support for the Olympics
with taxpayer dollars. The ordinance also
establishes an oversight process through a
joint committee of the Budget and Government
operations and the Finance Committee. If the
City of Chicago is selected as the 2016 host,
the current Bid Committee will be reorganized
as the Olympic Organizing Committee, which
will be tasked to provide quarterly reports
on Olympic activities. These will include
financial reports, forecasts, MBE/WBE
contracting, and construction activities.
The Operating Committee must also report on
status updates on compliance with the goals
and principles set forth in the Memorandum of
Understanding, including housing provisions
in the Memorandum of Understanding. (Read
CRN's letter to Aldermen calling for
accounting of housing goals in the MOU)
goals)
City of Chicago Preliminary Budget Hearings
With a projected $520 million shortfall in
corporate fund revenue in FY 2010, the city's
financial outlook is grim. In this time of
economic crisis, CRN calls for the
prioritization of affordable multifamily
housing, safeguarding funding for the
Department of Community Development, and
improving in transparency and accountability.
(Read
CRN Budget Testimony)
In the next few weeks, the City will release
its full budget proposal. In October, the
full City Council will conduct budget
hearings with all city departments. Stay
tuned for more information and upcoming dates.
State of Illinois unemployment at 10%
The Bureau of Labor Statistics
released unemployment
numbers for August 2009. Illinois is
among 14 states with unemployment rates at
least 10%. During the same time last year,
Illinois' unemployment was 6.7 percent.
Illinois also lost almost 310,000 jobs since
last year, the fourth highest among all
states. Since last month, Illinois
experienced 19,200 in job losses.
Recovery Websites:
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Chicago CDCs on the Leading Edge of Creating Livable Communities |
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Members of President Obama's cabinet and
other federal agencies made a local stop
yesterday to tour West Garfield Park and
Bethel New Life's developments including the
Bethel Commercial Center as the first
destination on their "livable communities
listening tour."
Designed by Farr & Associates, Bethel
Commercial Center is a certified LEED Gold
building, incorporating sustainable
strategies in energy use, lighting, water and
materials, as well as employing green design
features and access to public transportation
via the Green line "L" and major bus routes.
It houses six retail spaces, including a
Community Savings Center, the Bethel Family
Economic Success program, a child development
center, a community technology center, the
State of Illinois Attorney General's Office,
a Subway Sandwich franchise and a coffee shop.
The "Partnership on Sustainable Communities"
tour is intended to highlight an interagency
partnership centered on creating walkable
communities with transit access that provide
a mix of housing options co-located with
businesses and services. U.S. Secretary of
Transportation Ray LaHood,
Administrator of the Environmental Protection
Agency Lisa Jackson, and the Director
of the White House Office of Urban
Development Adolfo Carrion and
Shelley Poticha, Senior Advisor for
Sustainable Housing and Communities at the
Department of Housing and Urban Development
were all in attendance. The visiting group
was met by Mayor Daley, State
Representative LaShawn Ford,
Alderman Ed Smith, Woodstock Institute
President Dory Rand, LISC Program
Director Joel Bookman , Scott
Bernstein of Center for Neighborhood
Technology, and Bethel New
Life president and CEO, Steven McCullough
who is also a CRN Executive Board member
In his opening remarks, Daley noted that the
tour is a part of the Obama administration's
desire to increase the strength and ability
of the individual departments by realizing
the power of collaboration to combat social
issues in all of their complexity. This was a
statement later echoed by Adolfo Carrion as
he expounded on the tour by explaining that,
"The livability initiative, the inter-agency
partnership was essentially to amplify the
work, the creativity and the innovation that
was already taking place and was simply not
supported by the federal programs or the
federal agencies, as the federal agencies
have historically been operating in what is
popularly known as 'silos.'" A problem, he
asserts, that the Office of Urban Development
was created to counter, acting as "center of
gravity" for the work of these related
agencies, so that "we can align
transportation investments with housing
investments with environmental improvements
with job production with training of workers
and all the other things that constitute
community."
Members of the visiting group consistently
discussed the unique features of Bethel
Commercial Center as well as the strengths of
the organizations that helped to make it
happen, such as Bethel New Life and the
Chicago Rehab Network. Ray LaHood, who served
as Illinois' 18th District Representative
before being appointed to President Obama's
cabinet, emphasized the importance that the
current administration places on listening to
local communities for what is working, "We
came here to highlight what you're community
is already doing! To use it as a model for
what other communities should be doing." Lisa
Jackson stressed that in addition to
fulfilling several of the goals of their
partnership, the Bethel Commercial Center is
also LEED Gold Certified, which she cites as
a strong example of "smart growth
implementation-making investments in
communities so they are better able to
sustain themselves over time."
In reiterating and adding to the statements
of her colleagues, Shelley Poticha requested,
"Help us understand how you did this
wonderful project. How can we help you get to
the next level? And what do we need to do to
make it easier for communities like this to
thrive and be built all over the country?
You, represent the leading edge, in many
ways, of what we are trying to accomplish
nationally with this sustainable communities
initiative."
Photo: Secretary of Transportation Ray LaHood
addresses the crowd at Bethel New Life, the
first stop along the Partnership on
Sustainable Communities tour.
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City housing production update |
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The Department of Community Development has
released its progress reports on it housing
production for the first and second quarter
of 2009. (Read
CRN's analyses of the first and second
quarter reports)
During both hearings, aldermen expressed
concern about foreclosures and the impact of
the recession on pipeline developments
receiving city subsidy. Programs that rely
on the private investment such as the Low
Income Housing Tax Credit and the Downtown
Density Bonus have been especially hit hard
by the economic slump. In the second quarter,
the Department reports that seven DDB
developments have been cancelled,
representing more than $4.5 million in lost
anticipated revenue. The Tax Credit
Assistance Program and Tax Credit Exchange
Program, created under the Recovery Act to
help fill in financing gaps in shovel-ready
developments affected by the credit crunch.
To date, the Department has yet to distribute
any of these funds although the State has
already received its $95 million allocation.
The Department also reports that foreclosure
efforts funded by the Recovery Act funds are
underway. Among the new foreclosure efforts
is the expansion of the Troubled Buildings
Initiative to include deconversion of
distressed condominiums. The Department
expects to receive $2.5 million of CDBG finds
for this effort and an additional $2.9
million for foreclosure mitigation, outreach,
and prevention programs.
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Preserving Lathrop Homes |
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Current and former residents of Lathrop Homes
and advocates for preservation spoke at the
Chicago Housing Authority's monthly Board
meeting on Tuesday, September 15th, calling
attention to the ten years of uncertainty
that has placed residents of this "island of
affordability" in limbo.
Since the launch of the Plan for
Transformation, Lathrop's future has been
summed up as "To Be Determined." Liala
Beukema, who served for 17 years as pastor of
Church of the Good News, which emerged from
the Lathrop community. Beukema states that
the "TBD" status has placed a burden on many
residents. "We've lost so many good people
because of the instability that this TBD
status has rendered. We believe that a
redevelopment plan that focuses on
preservation of the current building and
utilizing the skills of the people who are
there could bring our ideas and dreams and
our hopes to completion a lot quicker."
In July 2008, a Chicago
Tribune report found that 9 years into
the Plan, only 30 percent of the
redevelopment goals of the Plan has been
finished. In March 2009, CHA, however,
announced that the Plan is 70
percent complete.
Still, CHA officials have yet to provide
concrete plans for Lathrop. The Lathrop
Leadership Team, a coalition of residents and
leaders, has envisioned
plans for their community which includes
maintaining 100 percent affordability for
low- to moderate income families,
preservation of the buildings, which have
been designated as eligible under the
National Register of Historic Places,
educational and job training opportunities,
and accessible transportation programs such
as a partnership with Center for
Neighborhood Technology's I-GO Car
sharing program.
In the beginning of this year, CHA recognized
the enormous need for family rental housing
and created the Property Investment
Initiative which would acquire foreclosed
homes with large number bedrooms and convert
them to rental housing. CHA has also
partnered with the City of Chicago in its
application to the second Neighborhood
Stabilization Program grant where it
seeks to use NSP2 dollars to expand the
Initiative and create 200 affordable rental
units. It makes sense that preserving
Lathrop should be a part of CHA's strategy
increase affordable rental housing for low
and moderate income families especially in an
area that has become too expensive for most
Chicago residents.
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Neighborhood Stabilization - State Awards |
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Illinois Housing Development Authority and
the Illinois Department of Human Services
announced grant winners of the statewide
Neighborhood Stabilization Program.
We
congratulate CRN members, Genesis
Housing Development Corporation and Hispanic Housing
Development Corporation, two of the 18
organizations throughout the state that were
awarded NSP dollars. Genesis is targeting its
foreclosure efforts in the Chatham community
and Hispanic Housing will focus on the
Belmont Cragin community.
More information
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Illinois Recovery website improved |
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Good
Jobs First, a DC-based watchdog group,
released a report in July 2009 titled "Show
Us the Stimulus: An Evaluation of State
Government Recovery Act Websites." This
report evaluates the websites created by
state governments to highlight their role in
the implementation of the $787 billion
American Recovery and Reinvestment Act
(ARRA).According to their evaluation, the
State of Illinois was ranked last with a
score of zero out of 100.
Since the release, changes have been made but
these improvements have only raised the
website's quality to acceptable. Illinois
still needs to make great strides to improve
their transparency and accountability. The
Illinois Recovery website improved by adding
interactive maps and charts, providing county
allocations, and listing all the programs
that received funding from the ARRA. There
is still room for considerable improvement.
The website does not include a comparison of
allocations with economic need, data on job
creation, or the status of the projects being
funded by the ARRA.
Image: The Illinois Recovery website recently
added new maps and graphs to show where
stimulus dollars have been spent.
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Policy Reports |
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Renters in Chicago
On September 15th, Metropolitan Tenants
Organization held an event co-sponsored by
CRN among many others at which a new report,
The State of Renters
in Chicago, was presented. The forum
included an overview of the report's findings
and a panel discussion. Panelists included
Sheila Crowley of the National Low-Income
Housing Coalition, Deputy Commissioner Ellen
Sahli of the Department of Community
Development, and Janet Smith of UIC's
Voorhees Center.
The report uses Census data and information
gathered from the 150,000 phone calls
received by the MTO Hotline, a citywide
service for tenants' rights. The report's
findings call for a comprehensive national
housing policy beginning with a convening of
a national housing summit to address the
housing needs of the country. The
recommendations also call for a renewed
commitment to affordable housing demonstrated
by increased funding and production of
affordable rental housing and the protection
of renters in foreclosure.
The full report can be found at MTO's
website, http://www.tenants-rights.org/
Rental vacancies increase but affordability
still out of reach
The DePaul University Institute for Housing
Studies also released a report on the impact
of the housing slump on the rental market. It
finds that the weak economy and increased
joblessness are contributing to the high
vacancies in rental housing. The report
indicates that the unemployment and the slow
economy have lowered incomes and have caused
many families to "double up" or move in with
another family resulting in a stagnant rental
market and higher vacancies. The study also
shows that with unemployment affecting blue
collar workers more, low and moderate income
neighborhoods are disparately impacted by
vacancies which add blight to communities.
Further contributing to the instability of
the local economy is the rediction of
operating income among multifamily owners.
The full report can be downloaded at
http://ihs.depaul.edu/ihs/
A Picture of Chicago Foreclosures, First
Quarter 2009
A report on foreclosure activity in Chicago
from January-March 2009 is now available.
Download the report here.
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CRN in the News |
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CRN Executive Director, Kevin Jackson, was
recently on Chicago Public Radio's Eight
Forty Eight program with Deputy
Commissioner of the City's Department of
Community Development, Ellen Sahli to field
questions and comments about the foreclosure
crisis. The segment was part of the launch
of Chicago Public Radio series, Facing
the Foreclosure Crisis.
Most recently, the series profiled
the work of The Resurrection Project.
TRP provides financial and homebuyer
counseling to the Little Village and Pilsen
communities and holds workshops in English
and Spanish for struggling homeowners.
CRN Board member and Executive Director of
Claretian
Associates, Angela Hurlock, was
also profiled as part of Chicago
Matters: Beyond Burnham programming,
which is highlighting "local visionaries" who
are contributing to the future of the Chicago
region. Claretian Associates is a leader in
creating affordable green housing.
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Participate in the first Chicago Metro CDC Census |
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The CDC Census has debuted, and both Chicago
metro CDCs and CRN staff are working hard to
complete it. Once completed, the Census will
provide an information base to show the
economic boost CDCs bring to local
communities. Making your organization part of
this data will be crucial to demonstrating
the need for increased funding to
Chicago-area CDCs. Though all organizations
are busy with the work of helping their
communities, the groups that have completed
the survey with the help of CRN staff have
found it to be a fast and instructive
process.
Don't hesitate to contact CRN to
schedule time for staff to help you be
counted in this census of your world-moving work.
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Chicago Rents Right Expo |
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The 6th Annual Chicago Rents Right Rental
Housing Expo will be held on September
26 from 9:00 am to 3;00 pm at Fosco Park,
1312 South Racine, Chicago, IL
Learn what you need to know about affordable
rental housing in Chicago. The event is
free. For more information call 311 or visit
www.cityofchicago.org/dcd
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Network NewsMakers and Upcoming Events |
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The Renaissance Collaborative is
celebrating Bronzeville at its 10th Annual
Gala on September 24 at The Renaissance
Collaborative Ballroom, 3763 South Wabash,
Chicago, IL. Contact Tiffany Sledge at
773-924-9270 ext 25 or tsledge@trcwabash.org
for more information.
Citizen Action Illinois will host its 2009
Annual Dinner honoring Governor Pat Quinn on
September 25 at the Chicago Hilton and
Towers, 720 South Michigan Avenue. RSVP to
Hannah at 312-427-2114 or
hannah@citizenaction-il.org
Brighton Park Neighborhood Council is
co-sponsoring a community meeting with
representatives from the Federal Reserve Bank
to discuss the foreclosure crisis on October
1st at 5:30 pm at Shields Elementary School
Auditorium, 4250 S. Rockwell, Chicago.
Tickets may be obtained by contacting
312-676-2826.
Genesis Housing Development
Corporation is holding its 13th Annual
Friends of Genesis Celebration and
Fundraiser, Healing Hands. The event
will be held on October 8th at 1043 East 43rd
Street, Chicago, IL. For more information
call 773-285-1685.
Please save the date for the Lathrop
Homes Reunion 2009, "Lathrop Lives" on
Saturday October 17, 2009 at 6:00 pm. For
more information, visit the Logan
Square Neighborhood Association website.
Register for the Housing Action Illinois 2009
Convention., The Blue (and Green) Prints of
Affordable Housing: Mapping Our Way Through A
Changing Landscape. The event will be held
at The Blackstone Hotel, 636 S. Michigan
Avenue, Chicago on October 22. Visit http://www.housingactionil.org/
for more information.
The Chicago Community Loan Fund is holding
its Fourth Annual Building for
Sustainability Workshop on October 19-20
at the Chicago Center for Green Technology,
445 North Sacramento Boulevard. For more
information, visit CCLF's
website or email workshop@cclfchicago.org.
Hispanic Housing recently acquired the
Squire Village apartments in Elgin, IL for
affordable housing preservation. Hispanic
Housing has proposed $1.6 million for
rehabilitation of the 181 townhome units for
families. For more information, visit www.hhdc.org
CRN Members, please mark your
calendars for a membership meeting on
October 15th. More details are
forthcoming.
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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 Initiatives Support Corporation and the Chicago Community Loan Fund |
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