Affordable Housing, Affordable Neighborhoods: Information, reports, discussions
and links to those who think, advocate, provide such services.

This page is presented by Hyde Park-Kenwood Community Conference and its website www.hydepark.org. HPKCC is a founding partner of the HP Coalition for Equitable Development, the new affordable housing advocacy and planning organization.
Join the Conference, support our work.

To our page on community coalitions for affordable housing.
To Affordable Housing in Hyde Park April 29 2006 Forum, report from Conf. Reporter. More internal and external links in the new Coalition's page. Their new website: hpkcoalition.org.
*****To May 19, 2007 Hyde Park-Kenwood Housing Summit
To New HPK Coalition for Equitable Development Organization page. Held its inaugural meeting and forum December 5, 2007 and meetings since. Their website: hpkcoalition.org
To Antheus/MAC Properties page. See below: Community. Mtg. with Eli Ungar May 6, Coal. Equit. Dev. meeting May 14.
To Ending Homelessness/Creating Affordability. Condo Conversions & High Rises.
To Government Services (both of the latter including programs for disabled, seniors and low/fixed income in housing; see also Seniors' and Other Tax Programs). Disabilities Task Force. Helpline-visit "Housing". Community Resources includes links to many region-wide support and study organizations; visit also Community Nonprofits.
The Olympics Community Benefits Agreements page has a model for advocacy: Draft for Olympic Village area
In this page: basic statistics to know. Liaison between HKCCC and the Task Force is George Rumsey.

Do you know?, housing and transportation are a family's biggest expenses.

Meetings and Seminars, movers and questions.

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Southside Solidarity Network meets in Reynolds Club various Thursdays. Contact Hallie at htrauger@uchicago.edu or (773) 896-6533.

A new faith based coalition for housing for the South Side, SOUL, has formed with a large number of congregations already joined. The group is working with new CECD - Coalition for Equitable Community Development in HPK.

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reprises:

October 16 2007, May 6 2008 forums with Eli Ungar of Antheus Capital and MAC Properties on landlord and housing and affordability management and development prospects and strategies had about good attendance and were lively meetings. Antheus also agreed to an affordable rental annex to Solstice on the Park if built and said he was working on ways to build new affordable and senior friendly units in his rental rehabs. Reports posted in Antheus page.

At the November 15 2007 public meeting on the 56th/Cornell project (Solstice on the Park), among items praised was agreement with IOC on keeping the building to the north affordable.

At the July 2008 TIF meeting, Ungar promised 15% affordable in the Village Center redevelopment.

December 5 2007, Affordable housing org.: Hyde Park Coalition for Equitable Community Development, an outgrowth of the multi-organizational forums, held its inaugural and organizational meeting at Hyde Park Neighborhood Club. It now seeks members to 1 show strength and interest, 2) be able to elect a board et al, 3) be able to inform the community on issues.

February 20 Coalition for Equitable Community Development in Hyde Park/Kenwood held its kickoff and an interim board was elected. Information in the CECD page. Website is in http://www.iocillinois.org/. Contact Pat Wilcoxen.

May 19 2007. Affordability Summit and proposal. The most poignant stories came from lower-income renters, but there were horror stories or concern from many much better off.
Interfaith Open Communities, Older Women's League, HPKCC, Chamber of Commerce, U of C Office of Community Affairs, and the Racial Justice Task Force, First Unitarian Church of Chicago. Hyde Park- raised community organizer John McDermott spoke. The assembly voted to start formation of a community organization on housing needs to plan, guide, support, and monitor housing and community activities that will create a sustainable, healthy community of Hyde Park-Kenwood open to residents at all income levels.The current task force will be expanded and convene a community convention to inaugurate the organization later this year.The call for the May 19 2007 summit, Herald report.

By June 2007, the affordable housing advocacy Council was organized as a formal nonprofit. Held forum Dec. 8, hold kickoff of the 501 February 20 and held a next meeting in May 2008.
To Report

Contacts: John Murphy at 459-4082 or Pat Wilcoxen at 643-7495.

A separate affordable housing group esp. including west Hyde Park renters, with Metropolitan Tenants Organization, marched from Drexel Fountain at 51st and Drexel to Harold Washington Park (53rd and S. Hyde Park) for rally and speeches. It seeks a freeze on condo conversions, preservation and maintenance of affordable rental stock, enforcement of laws governing landlords. Malik Wornum at MTO, 312 (may be 773) 292-4980.

 

News and updates:

Affordable housing--can it be defined to mean for people of all income levels and to the extent possible can it include accessibility needs? Need to do this was stressed for the Harper Court Area RFP at a guidelines focus meeting of the TIF plg. & Dev. comm. May 272008 and July TIF meeting.

A Federal update for 2008 from Chicago Rehab Network

Housing Stimulus Package. There are concerns about just using tax credits to stimulate buying. Sen. Dodd's June 25 amendment provides funds to preserve and create affordable housing with regulatory reform- FHA could insure refinanced loans. Treasury and the Fed. introduced regulatory and standards reforms to go into effect next January- opposition was expressed. Meanwhile Fannie Mae and Freddie MAC, with a couple banks nearly tanked. Proposed also in Congress ia s National Low Income Housing Trust Fund, most of which after 3 years would go to low income rental housing. The Waters Neighborhood Revitalization Act (now stand-alone) would target resources to vulnerable people(50% to families below 50% of Area Median) and concentrations of foreclosures but has been criticized as taxpayer bailout. Rep. Rangel sponsors a bill to increase th Low Income Housing Tax Credit. Rep Frank is working on a Housing Preservation Omnibus bill with provisions from the Preservation Working Group that includes Chicago Rehab Network; its design is to save and bring back housing threatened with conversion or demo by neglect. Another bill would give 90 days notice to tenants of properties being foreclosed.

The third most diverse neighborhood in Chicago

From Redeye, July 28, 2oo8, by Alexia Elejalde-Ruiz

...in a city that historically has been racially segregated...Uptown and other traditionally diverse neighborhoods, including Rogers Park, Hyde Park and Edgewater, are remarkable because they've managed to thrive as diverse communities for decades, becoming neither slums nor totally gentrified as other have....

Community groups that push for affordable housing and good health care, schools and jobs are paramount to maintaining neighborhood diversity, Maly [Michael Maly, Sociology Chair, Roosevelt University] said. The Organization of the North East, founded 34 years ago to "build and sustain a successful multi-ethnic, mixed-economic community"... is an important example,' he said. "....They've gotten people to work on projects together."

Some diversity stems not from tradition, but demographic shifts. Such diversity can be temporary. [Maly adds," I think it's important for our country to have those kinds o spaces where people can rub elbows."

Abstracted from the the measures that went into the ranking: Hyde Park (No. 3)

Measurements of the top 20 "most diverse" communities

41% White, 39% Black, 12% Asian, 5% Hispanic, 6% other (Hispanic question was answered separately.)

46% low income, 38% middle income, 16% high income (of top 20 diverse communities:
average for low income- extremes 61% New City, 26% Ashburn,
rather low for middle income- extremes 59% Ashburn, 32% Near West Side
highest (tied with Near West Side) for high income- majority 5%-7%

13% children (under 18), 67% adult (ages 18-54), 20% senior (over 55)
by far the lowest in children, the highest in adults under 55, third highest in seniors (with Uptown)

Antheus acquires Del Prado, East Lake Towers, plans Village Center with seniors in mind; VC with commitment to affordable 15%.

1) Hyde Park Herald, December 19, 2007. By Sam Cholke

Eli Ungar of Antheus Capital and MAC Apartments, confirmed Dec. 3 that they are under contact to purchase Del Prado Apartments, 5307 S. HydePark Blvd., and East Park Towers Apartments, 5242 S. Hyde Park Blvd.

"We are scheduled to acquire them at the end of January, and we are in the process of studying them to try to fully understand their current condition," Ungar said. Ungar said that from initial inspections it was likely that Del Prado would need to be emptied of occupants to perform repairs on the building.

"The Del Prado, I think, has some physical conditions that are very difficult if not impossible to address while the building remains fully occupied," Ungar said. From initial inspections of East Park Tower, much of the work - modernizing elevators and heating systems and renovating hallways and lobbies - could be done while residents continued to live in the building, Ungar said.

"The preliminary news is that the East Park Towers appears to be in significantly better shape than the Del Prado, and I think it is not certain, but highly likely, that the work we would want to do in East Park Tower could be done without interrupting occupancy of the building,"

Ungar said they are trying to keep renovation costs low so apartments can remain affordable once repairs are finished. "What we're trying to do is see what we can do at East Park Towers just short of a full renovation so that we wouldn't have to end up with rents that are significantly higher", Ungar said.

Both buildings are at about 70 percent of full occupancy currently , Ungar said. The hope is that some residents could be relocated to East Park Tower while renovations are completed on the Del Prado, he said. Ungar said one of the things they are trying to facilitate in the renovations is providing residents currently in the apartment towers the chance to stay in the community.

"We've been active in Hyde Park for a number of years now and things that were not on our mind when we first got started we've learned by being a part of the community," Ungar said. "Affordability is really first and foremost. There is a significant part of the community that has lived here for a long time, is on a fixed income, and would love to remain in the community and is growing ever more concerned about their ability to afford the community as it gets more expensive."

Antheus capital is mindful of the fact that one of the results of renovating buildings is that they become nicer and more expensive, Ungar said. "Financially, it would probably be better for us to empty both buildings and do a complete renovation. I think there is a market that would readily rent those apartments as soon as they're done," Ungar said. "Having said that, I don't think that's the best overall outcome for the community, and we're trying to be attentive to that and try to find a middle course that allows us to receive a fair return on our investment and also takes into serious consideration the impact it has on the community."


Del Prado's residents' move nears

Hyde Park Herald, March 12, 2008. By Kate Hawley

Tenants at the Del Prado Apartments, 5307 S. Hyde Park Blvd., had mixed reactions to a briefing last week about when they wil have to move out to make way for a gut renovation of the building. Tenants will be able to stay until their leases expire, representatives rom MAC Property Management explained at the meeting, held on Tuesday, March 4 at the building.

MAC is the management arm of Antheus Capital, the New Jersey-based company that bought the building in late January. The Del Prado is in need of major repairs that can't be accomplished if the building is occupied, MAC staff explained.

Tenants will have to find and apply for new apartments, but if they move into other buildings managed by MAC, they'll be able to waive the application and move-in fees, according to Wendy Neitzel, MAC's director of property management. Those fees will also be waived if the tenants want to come back to the Del Prado, she said. And tenants can end their leases early without penalty. MAC also plans to invite tenants and local building managers to a housing fair on Thursday, April 3.

Muel Benforde, a building resident, said he found the meeting helpful. "I was pretty much comfortable with what they talked about," he said. "They were very professional about it." He would be interested in moving to another building managed by MAC, he added.

Maribeth Quinn, who has lived in the Del Prado for 23 years, is among the tenants who receive subsidized rent through the Section 8 voucher program. Although she agreed that the building is in disrepair, she was upset about moving. "At first, I cried," she said. "This was my home."She hoped not to have to leave the neighborhood. "I want to stay here in HydePark," she said. Section 8 tenants must apply for new apartments that accept vouchers through the Chicago Housing Authority. Whether or not Section 8 tenants can return to the rehabbed Del Prado depends on what the rents will be, which hasn't yet been established, according to Eli Ungar, head of Antheus Capital.

Karen Bevil, a 19-year resident, lives in a market-0rate studio with a view of the lake. She was irked that she'll have to re-apply for anther apartment. "I'm already a tenant, and I'm a tenant of yours by default," she said. "Why should I go through anything but just transfer to another apartment?" Ungar said that since his company inherited these tenants, it has the right to ask them to apply for space in one of its other properties. Bevil also expressed doubt that the building was in need of repair. Ungar said it needs serious attention: the elevators, windows, plumbing, and heating and cooling systems need to be replaced.

Major demolition and rehab won't begin until the last residential lease ends in late fall. The rehab of the building will likely take a year, with the units ready to be leased in the spring of 2010. Ungar said it's too early to tell whether rents in the rehabbed building will be comparable to what they are now, especially since some reconfiguration of the units is likely. The building has a number of 250-square-fot studios that will likely be made into larger, more livable units, he said. "The building will be beautiful and rents will reflect that," Ungar said.

Currently, the Del Prado's roughly 200 apartments are about 65 percent occupied, according to Ungar. The building also has a handful of retail tenants, including a dentist's office and a dry cleaner. Those leases will be honored if the tenants so choose, he said.

2) In July 2008 Antheus rolled out plans for a mixed development replacement for Village Center shopping ctr. at E. Hyde Park Blvd. and Lake Park, to include 170 condos, 15% affordable and 20% accessible, with likely overall accommodation of seniors-friendly components. See Antheus page. Of course, it is a question of whether what is called affordable is, and to whom, in condo developments.

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Debate continues over whether CHA transformation is leaving thousands with no good replacement housing and inundating neighborhoods (and the south suburbs) with thousands either unprepared for independent living or criminals*

(*Ald. Hairston decries the inundation and lack of training-services, but blames a set of landlords, not Section 8 for the growth in gangs and criminals while Ald. Preckwinkle points to the dislocation/relocation of gangs.)

In early summer 2008 the Chicago Tribune published a series strongly blaming the CHA. Metropolitan Planning Council takes exception:

"The Metropolitan Planning Council’s advocacy of quality housing options for the city’s low-income and working families dates back to our inception in 1934, and continues today. MPC is deeply involved in promoting the accountability and success of the city’s Plan for Transformation with the full range of stakeholders - including residents, developers, employers, civic and community organizations, and, of course, the CHA and other city agencies. MPC took issue with the Tribune’s article, which failed to acknowledge either the historic progress that has been made, or the context for its critiques.

MPC firmly believes mixed-income housing - linked to reinvestment, good jobs, transit, schools, parks, and other services - is the best way to reverse decades of poverty and isolation for public housing residents. Creating such healthy and thriving communities is a daunting endeavor, considering the challenges. The Plan should be judged by its ability to improve people’s lives, not against an arbitrary timeline.

MPC’s response to the Chicago Tribune, co-authored by The Partnership for New Communities, is available online." http://www.metroplanning.org.

Alderman Preckwinkle also accused the Trib of misrepresenting Transformation-- and redevelopment, in her July 30 Alderman's Report in the Herald

I was deeply disturbed by the story on the Chicago Housing Authority's Plan for Transformation which ran in the Chicago Tribune on July 6. There are transformation developments in my ward and my knowledge of these developments does not correspond with the thrust of the Tribune story.

The reinvention of public housing in Chicago has been complicated and difficult. While there are problems, my constituents are pleased with the changes they see as new, mixed income housing replaces dilapidated, troubled public housing projects. Mayor Daley, Lewis Jordan (Chicago Housing Authority), Valerie Jarrett (Habitat), and everyone else who has been involved deserve our thanks for their vision and hard work.

The article begins with a troubling omission. It glosses over the terrible conditions in the public housing developments in my ward and elsewhere prior to the Plan for Transformation. The Ida B. Wells, Madden Park and Washington Park Homes sites in my ward were plagued by violence, gang and drug activity, terrible management and miserable police protection. My most uncomfortable moments for year were meetings between CHA managers and good and decent public housing residents who begged , without success, for the eviction of bad actors. The condition of public housing in Chicago reflected very badly no only on the housing authority, but also on the city as a whole.

The second glaring error is the implication that developers and managers were chosen for these sites by the friends and allies of the mayor. On the basis of my experience, this is nonsense. Neither the CHA nor Habitat made decisions alone, and to imply otherwise ignores the good work of many dedicated, committed individuals, public housing residents and their lawyers, community residents, the city departments of Planning and Development and Housing, Habitat, Business and Professional People in the Public Interest and my staff and I were all part of the decision making process. This has been a collaborative effort.

In addition, all three working groups I participated in were committed to mixed-income developments that included both rental and for sale housing, reflecting the pattern in the rest of the City. There was also a universal commitment to seamless communities where the income of residents could not readily be determined by the design or materials of their units. This has undeniably resulted in higher per unit costs, and I think it is money well spent.

In fairness, let me acknowledge what the Tribune got right. The initial goal of completing redevelopment in a decade was overly optimistic. From the outset it was clear that twenty or thirty years was a more reasonable timeframe. Furthermore, putting the redevelopment deals together, since they involved layered financing an multi-level government signoffs, was a complex and difficult process. Getting started took longer than anyone anticipated and the recent collapse of the housing market has been an additional obstacle to progress.

Also, while taking down the existing public housing units was absolutely the right thing to do, insufficient consideration was given to the consequences. A handful of African American communities in the City and south suburbs have been inundated with very low income families relocated from public housing units. Neither CHA nor the City had a plan to prevent this re-concentration.

While I am concerned about these issues, I think that the Plan for Transformation has been a tremendous benefit to the communities I serve, and I regret the Tribunes' gloomy and dismal assessments. I understand this is the first of a series of articles and I hope future stories are more balanced. Top

Set aside ordinance- but is is enough?

In May, 2007 City Council and the Mayor compromised to pass a set aside ordinance 42-2. It had the support of Ald. Preckwinkle and Hairston, but aldermen consider it a Trojan Horse. They and other aldermen will be seeking further changes. The minimum is 10% (with opt out into fund allowed); aldermen can negotiate for more.

Ald. Preckwinkle and others told the May 19 Housing Summit in Hyde Park that the Mayor in effect pushed his ordinance through at an extraordinary Monday 8 am meeting just a few days before alder ment who favored a stronger ordinance were to be sworn in. The worst problem is that it sets the definition of affordable units as that affordable to the median six-county income earners ($75,000), defined under federal formula as costing to the buyer $225,000.
The second problem is that the number of such units (or equivalent in payment into the city affordable housing fund) is only 10%. In effect, efforts by aldermen to negotiate for better may be undermined.
The third problem is that it does not apply to all development--only to city-owned property, planned developments, and upzoning.

But, Preckwinkle said, the new Council is expected to push for improvement.

Compromise Affordable set-aside ordinance passes city council, local aldermen approve by seek more.

No less than 10 percent: Alds. Preckwinkle, Hairston approve Daley's affordable housing ordinance. Hyde Park Herald, May 16, 2007. By Kathy Chaney

Hyde Park aldermen Toni Preckwinkle (4th) and Leslie Hairston (5th) pledged their support of Mayor Richard M. Daley's Affordable Requirements Ordinance at a special CityCouncil session May 14. The measure passed 44-2.

"I'm grateful to the 15 aldermen who supported the set-aside idea in December 2002 when we first introduced it and hen the 21 aldermen who supported it in May 204 when we introduced a revised and much more substantive ordinance," Preckwinkle said in council chambers.

The mayor's ordinance, expected to produce about 1,000 units of affordable housing each year, differs from an ordinance championed by Preckwinkle in 2002. It expands the 10 percent mandate to incorporate planned developments, various types of land transactions within the city and changes in zoning that would boost density. It also defines as "affordable" no more than $75,000 per year in annual income for a family of four in Chicago, an amount Preckwinkle felt was too high. *

[Ed. GMO: This means that the units would be offered to affordable-qualified for not less than $225,000- NOT that units are pegged to an affordable price then offered to families of four earning as much as $75,000. This, setting a high income level that defines the prices for the units, these aldermen say, makes them not affordable to most living in their wards on the South and West Sides. Still, to afford median housing in the 6-county Chicago Region (spending about the recommended quarter of income on housing), a family of four with one earner needs to earn about c$15 an hour, half again the proposed floor of the failed big-box ordinance, $10. ]

"our new policy will support economic development, increase the supply of affordable housing and make sure people have the housing choices that meet their needs. We're much more progressive than any other city," Daley said.

Developers would be offered an alternative. For a contribution of $100,000-per-unit to the city's affordable housing trust fund, a developer could opt out of the requirement.

In 2002, Preckwinkle devised an ordinance that required 25 percent of units be set-aside for affordable housing. That measure did not garner the support of the mayor and other aldermen, stating the ordinance would drive potential developers away.

Two years later, Preckwinkle offered a revised version to City Council that required developers to set aside 15 percent of units for affordable housing. the ordinance also defined "affordable" as no more than $60,000 per year in annual income for a family of four. Pilsen Ald. Billy Ocasio (26th) wanted it lowered to nearly $50,000. Both amendments for the reduced annual income were defeated.

Hairston said the ordinance was "not definitive" but "one more step towards the final goal" adding that the definition of affordable excludes many of her constituents."We need to be real with what we're doing in our own backyards. We need to get on the right track," she said.

Most aldermen said the ordinance should be celebrated as a victory because it is a step in the right direction while a few feared the ordinance would block their attempts of getting more units set-aside by developers.

"It's a minimum that establishes a a baseline across the city," the mayor said, adding that any alderman could negotiate for a larger percentage in their wards [ignoring that that leads to distortions, even avoidance and redlining].

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The call for the May 19 summit and talk; Herald report

Hyde Park Herald, May 16, 2007, by Brian Wellner.

The future of Hyde Park's housing will be discussed at a summit from 9 .m. to 11 a.m. May 19 at University church, 5655 S. University Ave. Also discussed at the summit will be the creation of a housing committee for Hyde Park. The event follows a panel discussion last year regarding the fate of affordable housing in the neighborhood.

Organizers recently told the Herald that community leaders and elected officials should demand economic diversity in the area's housing. "There's a consolidation of our housing stock and people are getting squeezed," said Hyde Parker and organizer John Murphy."Longtime residents who grew up here and raised their families here find that they cannot stay here once they retire."

Murphy is a social worker for the Hyde Park-Kenwood Interfaith Open Communities, one of the event's sponsors. Other sponsors include Hyde Park Older Women's League, Hyde Park -Kenwood Community Conference, Hyde Park Chamber of Commerce and the University of Chicago's Office of Community Affairs.

If participants at the summit agree, a housing committee could created as soon as October.

Organizer Pat Wilcoxen suggested that one of the first tasks of the newly-formed committee could be to create an inventory of current rental housing in Hyde Par. "This would not be a service organization. We would do research, give information and work with developers at the very early stages," she said.

Murphy said Interfaith Open Communities has met with Eli Ungar of Mac Property Management/Antheus Capital on numerous occasions about preserving rental housing in the neighborhood. Ungar's company recently purchased 47 apartment buildings throughout Hyde Park and said that while converting apartments is not totally out of the question, he would maintain at least most of them rentals. Many of the buildings were previously managed by K 7 G Management LLC. As a result of the sale, Mac now manages 2,800 rental units in Hyde Park, making it one of the neighborhood's largest property managers.

According to Wilcoxen, there has not been resistance from the development community about the creation of a neighborhood housing committed."Developers respond better the broader the organization," she said.

As for the lack of developable land in the area, Murphy responded by pointing to Harper Court. "It's an excellent location," he said. "We need a meeting of the minds."

For information on the summit, call Murphy at 459-4082 or Wilcoxen at 643-7495.

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Herald report on the May 19 summit- Groups vote unanimously to create housing committee

May 23, 2007. By Yvette Bresberry

Several community groups and residents of Hyde Park and Kenwood voted May 19 to create a committee to support affordable housing in the area.

Members of the Interfaith Open Communities (IOC), an organization known for addressing local concerts, met with other community organizers and local residents to discuss ways to create and sustain affordable housing for current long-term residents. They then approved unanimously to create a housing committee that supports affordable housing to residents of all income levels.

Although Mayor Richard M. Daley recently passed a housing ordinance that required 10 percent of planned housing developments be set aside for affordable housing for a household of four earning $75,000 annual income, IOC members said more would need to be done to keep affordable housing in a consistently changing area like Hyde Park and Kenwood.

Hyde Park resident John McDermott said that Hyde Park might face housing problems if the Olympics are placed in Washington Park in 2016 and the South Loop continues to stretch into Douglas, with new business and housing developments.

McDermott brought up that while city officials are hoping the Olympics will produce revenue for the city as a whole, businesses and residents who may be affected by the Games' arrival, mainly in Kenwood and Hyde Park, are concerned about losing land to gentrification. He wondered what benefits Hyde Park will reap by the Olympics' popularity, particularly in housing.

"Hyde Park might be facing a whole new set of problems," McDermott said.

While considering creating a committee to supervise options for affordable housing, some attendees asked why this new committee could not be an extension of the Interfaith Open Communities. "We want to broaden the base as much as possible," said organizer Pat Wilcoxen, adding that the new committee is intended to be an organization of organizations and not just linked to one group.

Ken Oliver, the meeting moderator and IOC's executive director, said the next step is to add people to the housing committed and inaugurate the group by the fall. "We'll be looking to [add] a convention this fall, maybe October," Oliver said.

 

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What will be the impact over time, if any, of purchase of 47 mostly K and G affordable unit buildings by rehabbers MAC Properties?

Disabilities Task Force: A task force on rights and responsibilities of and towards People with Disabilities or face barriers or non compliance is in full action. Call the Conference office, 773 288-8343, Lenora Austin at Hyde Park Chamber of Commerce, 773 288-0124 or Sue Purrington at the 5th Ward Office, 773 324-5555. Visit the Disabilities Task Force page.

October 13, 2006. The city's Chicago Center for Green Technology hosted a workshop, Building for Sustainability. Affordable Housing, Energy Management, Healthy Homes, High Design Results. Attendees learned about best solutions and results, grant programs and other resources including preview of the coming "Green Guide" to local resources, the challenges to affordable green design, new projects. At the Center, 445 N. Sacramento Blvd. Call David Theiss at 312 252-0440 x205 for information.

Meanwhile the Metropolitan Planning Council has published HomeGrown: Housing Strategies in Action (colab. of MPC, Chicago Metropolis 2020 and Metropolitan Mayor's Caucus.)

There is a new affordability index from The Brookings Institution and endorsed by Center for Neighborhood Technology: http://www.brookings.edu/metro/umi/pubs/20060127_affindex.htm. More description in the Affordability Forum page.

UC panel discusses micro credit

Hyde Park Herald, March 19, 2008

A student group at the University of Chicago [Southside Solidarity Network] hosted a panel Thursday to explore how micro credit -- the practice of handing out very small loans --might be applied locally. Microcredit gained international attention in 2006 when the Nobel Peach Prize was awarded to Gameen Bank of Bangladesh and its founder, economist Muhammad Yunus.

By extending microcredit to more than five million borrowers, Yunus and Grameen empowered people, many of them women, who would otherwise have been cut off from economic opportunity.

The panelists at Thursday's event expressed a similar goal. Kathleen Robbins, of the Illinois Small Business Development Center at Hull House Association, descried lending $150 to one client to help her start a hat-making business. And two officials from Shorebank described their institution's broad efforts to help low- and moderate-income clients.

"Our experience has been that the markets are really weak for small business customers, with the exception of rehabbing apartment buildings," said Mary Houghton, president of Shorebank corp.

However, microcredit doesn't have the kind of broad application in this country that it has had in third-world countries abroad,noted Kate Rogers, vice president of marketing and lending with ACCION Chicago, an affiliate of ACCION USA, the nation's largest micro-lender. And micro-lending has diminished in Chicago in the last few years as credit markets have tightened, sid Duane Wadlington, a loan officer with Chicago Community Ventures, a nonprofit focused on small-business development.

 

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Legislative update spring 2006 (as of April 10)

From Interfaith Open Communities

Illinois- for latest go to www.ilga.gov

Comprehensive Housing Planning Act SB 220. Martinez Sen, Hamos House. Passed both April 6, expected to be signed.

New law requiring an annual housing plan, strengthening Executive Order 2003-18 for Illinois Housing Task Force.

Low-Income Home Energy Assistance Program HB 1744.Covin House, passed, amended and passed in Senate, likely passed now by both.

Allow voluntary donations to ILHEAP and transfers into the fund $5.2m according to a formula.

7% Tax Cap Permanent Extension and raised minimum benefit SB 2699 was SB 700. Hoolihan and Daley support--should have passed, ask rep. or senator.

Residential Tenant Protection Act HB 4758. Failed. Princ. sponsor Housing Action Illinois. Makes lockout of tenants illegal and codifies case law decisions with assigned penalties.

Safe Homes Act Hb4715. Rep Kelly passed both. Illegal to evict a victim of domestic abuse and allows same right to terminate joint-tenancy lease.

State budget from Governor. One-time uses of Affordable Housing Trust Fund surplus of $22.5m. Ask rep. or sen. what passed.

Federal- for latest go to http://thomas.loc.gov

President Bush called for small increase in Section 8 voucher funding but reduction in public housing capital budget and Community Development Block Grants, calls for passage of a Flexible Voucher Act. Disagreement.

New affordable housing (GSE such as Fannie Mae) Deadlocked.

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Follow up planned to April 29 2006 Hyde Park Affordable Housing forum

[The group is now considering a narrower focus and organization of a funding arm, such as a community development corporation.]

From Joan Staples and Pat Wilcoxen, Housing Forum Planning Committee, Hyde Park Herald, May 31, 2006

Thank you for providing a background article on affordable housing (Herald, April 26( as well as publicity before the April 29 forum and follow up to that event including editorial support (Herald, May 10).

As recommended by those attending the housing forum, a task force is in formation to explore opportunities for affordable housing in Hyde Park, Kenwood and Woodlawn. Those interested in joining the task force may call the convener, Julius Yacker, at 363-0328.

A summary of the April 29 forum will soon be available on the web sit of Interfaith Open Communities (IOCillinois.org) and the Hyde Park-Kenwood Community Conference [April292006forum page]. A summary will also be sent to those who attended.

Future meetings are planned for the fall.

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Higher end realty holding up well

According to a Herald article in November 2007 by Sam Cholke, while velocity of real estate sales in the $2 million and up class has dropped here, it is less than for other neighborhoods and show signs of turning around, and prices have held steady. Housing prices in Hyde Park are traditionally over 15% below those in Lincoln Park and Bucktown-- and holds its value better. Diane Silverman of Urban Search cited the University anchor, variety and distinctiveness of of styles and strong sense of community for the steadiness, noting that people buy here basically to live. She also noted that media attention and other trends have reduced the untrustworthy lenders, contributing to more stable lending for neighborhoods like HydePark that have shown consistent appreciation. She expects activity to pick up in the spring.

At the meeting on the 56th Cornell proposed 26-story condo high rise, Bob Mason of South East Chicago Commission said this new building for condo buyers will fill a missing niche while not driving anyone out and will bring in new customers to grow retail that will benefit all. He noted that Hyde Park's population peaked at 71,000 half a century ago and bottomed out at 42,000 at the end of the past century.

At the same meeting, John and Brenda Murphy of Interfaith Open Communities, along with Eli Ungar of Antheus Capital, announced terms of affordability for the 5528 Cornell building that Antheus bought and will remain just north of the Solstice on the Park project. Current residents will have rents frozen into perpetuity, and new tenants will have affordable rents into perpetuity. Top

Jack Spicer's prescription to HPKCC Development Committee after 53rd Vision Workshop 2008

Affordable housing was not thoroughly dealt with at the workshop. it is standard practice for affordable housing advocates... to petition (beg) the aldermen to encourage (lean on) developers to provide below market units in their developments. Nobody is building new rental right now, so this is mostly low-end condos or off-site rental in older buildings. There's not much potential here for poor or old people because the condos are still too expensive and the off-site rental isn't where people are now living. Why not create a not-for-profit community development corporation that creates and manages "low-equity co-op housing"? The local banks and the developers involved in local projects would be partners and community members could buy shares in the corporation and "invest" affordable housing. Development and "gentrification" are going to happen in Hyde Park. As we work to make sure it is good and smart development, we need to take it into our own hands to limit the damage to poor and old people. Not-for-profit, low-equity co-op housing corporations are operating all around the country, often in the same way a nature conservation land trust operates. Burlington, Vermont has a good one (also has a good, successful co-op grocery store, by the way). Top

Preserving Apartments and rental housing in general

Drawn from pamphlet from the Chicago Rehab Network, May 2006. There was a Southside Affordable Rental Housing Preservation Summit Saturday June 3.Chicago Rehab Network, 312 663-3936. http://www.chicagorehab.org

[Note, the national real estate board says rents are starting to soar, April's rise in Chicago being twice that of the previous year.]

The South Side (c. 27th to 95th, Lake to west edge) has about 12, 400 units of affordable-defined rental housing. By 2010, over half, 7,100 units are in risk of being lost.

Of the units above, Hyde Park is listed as having 24 units of affordable rental housing, Kenwood 690, Oakland 176, Grand Boulevard 658, Washington Park 368, Woodlawn 1109 and South Shore 685.

There is an Illinois law, the Federally-Assisted Housing Preservation Act that gives tenants several opportunities to intervene if an owner plant to terminate affordable rents. There is an increased set of situations in which owners of assisted housing must give notice and opportunity for tenants to purchase, including via tenant associations partnering with non profit or private developers, to keep the buildings affordable. Forming a tenants association is a key step, so is reaching out to form a support network of elected officials and organizations. Top

Countervailing the condo conversion trend: niche rental marketers. And disapproval of the thesis that the only way to get property renewal and upgrade is through conversion. (The question is still there, "affordable to whom?", but the units are clearly affordable to many who are well off but not rich.)

In addition to the many retailers that cater to the student renter, and some who provide distinctive middle-income small apartments, are those who say they will not convert but will continue to offer higher end rental apartments. One is MAC Properties, associated with the same New Jersey firm (Antheus Capital) that recently bought the Algonquin Apartments, which now is declared to be staying rental. Another is Regents Park, whose new owners backed away from prospects of going condo (although they reportedly cut services and staff as well).

MAC Properties is buying the famed and landmarked Windermere House from Metroplex; there appears no likelihood of its going condo and will probably add a regional epilepsy and brain disorder imaging and treatment center in conjunction with the University of Chicago Hospitals.

Re the Algonquin, the Herald reported* (Daniel J. Yovich) October 4 2006 that:

The owners of the Algonquin Apartment buildings are continuing an extensive rehab and remodeling project begun by the previous owners and say they have no plans to convert the Mies van der Rohe-designed building to condominiums. "We are in the process of renovating the first two of the (six) building and intend to renovate all of the buildings in the next year or two," said Susie Charendoff, a spokeswoman for Algonquin Management LLC. "We anticipate completing the first units later this year and they will be available for rent. We have no intentions of converting the property to condominiums."

Erroneous speculation and rumor of an impending Algonquin condo conversion have recently made the rounds among Hyde Park real estate and financial circles. The property was purchased from the Habitat Company in February, which had publicly said in 2005 i had plans to convert the 414-unit, six-building complex to condos.

Some Algonquin tenants have been asked to relocate to other buildings as the renovation continues. ... A new fitness facility for the complex is also planned...

*according to a knowledgeable source contacted, not every detail is right, but the tenor is.) Top

A bit of reality from the developers of 56th and Cornell (Antheus).

Asked [at the January 4th HPKCC board meeting] about prospects for “affordable” units, the developers said that the market makes it very difficult to build new structures containing affordable owner units, and new rental buildings are completely out of the question in Hyde Park or nearby (none having been built since 1969). The replacement cost for a $5 million-priced building is $15 million and assessments and taxes for similar buildings vary enormously. Programs designed to help, such as Section 8 and Class 9 have now gotten out of balance, so that only desperate landlords will use them---until they convert the building to condos, and those that have a good market for their units will turn down prospective occupiers under these programs who won’t or can’t pay market prices or rents no matter who goes to bat for them. Section 8 at present is not profitable to landlords and is tied up in inspections and other bureaucracy. (Class 9 subsidizes 20 percent (was 33%) for multiple-unit and $16% for single-occupant structures and involves tax breaks if the units are upgraded—but this is no longer profitable and is inappropriate for an owner building, the board was told. Landlords are phasing out of Class 9.) Top

Whoa--is this a Mac Management invasion? Mary Rose Shaughnessy writes Herald July 25 2007- goodbye affordability?

Whoa! What's going on in our Hyde Park? Have you noticed all the Mac Management signs around Hyde Park? Have you heard of Antheus Capital LLC? You should know that this corporation owns over 80 properties in Hyde Park, managed by Mac Management. Take a lok at the website of their holdings in Hyde Park: [http://www.]macapartments.com/mac/a_ch_hp_overview.html.

Be sure to click on the Property List by Address link to see the specific buildings. Chances are you live in or nest door to one of his properties. I do.

Does this look like it's getting to be a monopoly? O, yes, now you remember. Isn't Antheus Capital the one who has big plans for the Village Center? And the Windermere? And isn't it the one planning to put up that tower next to Bret Harte School?

If Antheus Capital continues unchecked--it may end up owning more of Hyde Park than the University of Chicago.

What's wrong with this, you ask? Do we want one man, Eli Ungar of Englewood, New Jersey to have a monopoly in Hyde Park?

We wonder what plans has he got for us? Well, to begin with, he thinks we need more expensive condos. "There are very few options for people interested in a highly amenitized, well-located condo building in Hyde Park," he said about the new tower at 56th Street and Cornell Avenue. "There's been very little new construction of residential buildings in Hyde Park," he claims.

Apparently he missed the highly amenitized new residential developments that have gradually filled every inch of Hyde Park before he arrived in 2002.

Can higher real estate taxes be far behind? And judging from the steel and glass tower he plans for the parking lot next to Bret Harte, he has no idea of what architecture is appropriate to Hyde Park.

Ungar also does not seem to understand the character of the community. Hyde Park has never been a bedroom community of short termers who come for a few years to work and then move on. Yet that is what Hyde Park could become if the middle-income renters have to move out because they can't afford the new rents after he upgrades his rental properties, as he is dong with the Algonquin Apartments. "Stainless steel appliances, including a dishwasher, are surrounded by granite counter, granite backsplashes and white laminate cabinets. Translucent doors that match the hall closet enclose one pair of cabinet. White subway tiles line the kitchen's far wall, and dark beige ceramic tiles cover the floor," according to Janice Rosenberg in a "Special to the Tribune" March 18.

Stainless steel and granite counters wil mean middle-class residents and seniors who are already paying almost half of their income to live in the Algonquin will have to leave. Doe he plan to "amenitize" all the 80+ buildings Antheus owns in Hyde Park?

Do we want upgraded buildings at the expense of our long term neighbors? Do we want Hyde Park to become Evanston-on-the-Midway? Do we want to drive out the middle class from Hyde Park? Do we want our real-estate taxes going through the roof?

Is Mr. Ungar interested in us, or is he only interested in the profit that can be made from hot properties for his corporation? Top

See rebuttals in the Antheus/MAC page.

Proposed Chicago Set Aside Ordinance (princ. area sp. Ald. Preckwinkle, 4th)

Applicability Substantial rehab, condo conversion, new to 10+ units
Set-Aside 15% on non-subsidized private development
Target Income Levels

Rental units: affordable to households at below 50% of Area Median Income ($37,500 for family of 4 in 2004)

Owner-Occupied units: affordable to households at or below 80% of the Area Median Income ($57,500 for family of 4 in 2004)

Control period 30 years
Cost Offsets

All permit fees will be waived on the affordable units, and a developer will receive two of the following cost-offsets, subject to the approval of the alderman:

  1. 1 for 1 density bonus
  2. Increase in maximum floor ratio
  3. Increase in maximum height of 25% in areas zoned R4 and above and corresponding commercial areas
  4. Reduction in the required minimum rear setback of 30% or 10 feet whichever is less
  5. Reduction in the required minimum front setback of 25%
  6. Reduction in the minimum off-street parking requirement to .333 parking spaces per affordable unit
  7. One accessory unit
In Lieu Alternatives
  1. Develop 1.5 times the number of required units offsite within the same or contiguous community area
  2. Rehab 2 times the number of required affordable units within the same or contiguous community area
  3. Pay a fee in lieu of the amount of $100,000 per affordable units ...deposited in Chicago Low Income Housing Trust Fund where for 3 yeas they will be allocated for units affordable to households at 30% of the AMI. Money must be expended within the same or contiguous community area of the development except for developments in the central district.
 Resale Requirements

Maximum resale price is lesser of:

  • Original price plus inflation adjustment of original price based on CPI for Chicago plus allowances for closing costs/sales commissions (seller receives limited equity); OR
  • Price affordable to an eligible household as published in Annual Report (seller receives limited equity)
  • Owner must provide 60 day notice to Department of intent to offer unit for resale
  • Owner must sell the affordable unit to a qualified household that meets the income criteria of the ordinance (80% of AMI)
  • Department determines resale price
  • Seller must provide Department with proposed sales contract, copy of buyer's Qualification Certificate, signed affidavit attesting to accuracy of all documents.
 Enforceability
  1. (General)
  2. Any owner of an affordable unity who does not occupy the unit as a primary residence must offer unit for resale; any lessee not occupying unit as a primary residence must vacate unit
Effective Date 6 months after passage
Non-Profit Housing Providers

Have 60 day option to begin purchase or rental of one-half of the owner-occupied affordable units

  • Department must provide advance notice of available units
  • Housing provider receives priority consideration in event of comparable offer from an individual
  • Housing provider may only lease or resell unit to eligible households

Note that the ordinance would apply to new construction, not just current.

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News from the Hyde Park Transitional Housing Project-Spring 2006

Supported family: Debbie, head of household, is in electrician apprenticeship. Leaves program start of 2007 including assumption of lease. Her son will attend Morehead and has undertaken several projects.

THP held a fundraiser in February and annual meeting with panel in May and went to Springfield in February to support legislative housing initiatives and funding.

Mentors are needed. Anne Holcomb at hpthp@att.net. (if not work try sbcglobal.net.)

Mailing address: HPTHP c/o University Church, 5655 S. University, 60637. Rev. Don Coleman 773 363-8142, Anne Holcomb 773 643-8161. http://iocillinois.org/hydepark/transitionalhousing/

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Questions about Homesharing based on flyer from LCBH. homesharing@lcbh.org, 773 627-8201.

What is it? A single home is shared between to or more unrelated individuals. HomeSharing partners have a private bedroom and share common household areas. Rent, services or a combination are exchanged.

Why? Some want help with housing expenses. Others seek companionship and security or assistance, whether health or aging related or during transitions such as divorce, unemployment, or education. A main motive is keeping one's home and independence.

Limitations. Compromising solitude and personal space. HomeSeekers may have to give up a pet or furniture. Likely to be temporary or term on both parts.

Screening. HomeSharing staff reviews and interviews. References are required and checked.

Matching. Staff seeks compatibility of needs and expectations. Meetings and negotiations are held. Decision is solely in the hands of the parties. The process may take some time. Staff will stay involved.

Taste of Hyde Park raises $, awareness. Hyde Park Herald Feb. 27, 2008. By Kate Hawley.

This year's Taste of Hyde Park showcased the fare of 23 local establishments, but the purpose of the event, held Saturday evening at the United Church of Hyde Park, 1448 E. 53rd St., went far beyond the gourmet pizzas and glasses of Chardonay.

Its proceeds supported the Hyde Park Transitional Housing Project, which sets homeless families up in apartments and pays their rent for two yeas. During that time, mentors help them find jobs, pay bills, make appointments and sent their kids to school

In support of that cause, a crowd of about 114 paid between $20 and $30 per person to sample food from Bar Louis, Cedars Mediterranean Kitchen and other restaurants. Willie Pickens, the noted jazz pianist who lives in Hyde Park, provided the entertainment, playing standards like Gershwin's "The Man I Love" ______________.

.......[material cut] two school aged children. The mother had been living in her car for two years while the kids stayed with relatives. [Anne] Holcomb described the children in that family as "intellectually gifted."

The third-annual Taste of Hyde Park raised a little more than $7,600, according to Allan Lindrup, treasurer of the organization. The first year, it raised $4,000, he said. The cost of supporting a family is between $12,000 an $15,000 per year, according to Mark Granfors, a board member.

The Hyde Park Transitional Housing Project is an all-volunteer organization that gets its funding primarily through individual donations. Board members appeal frequently to their churches and synagogues, whose member have often responded generously [Rev.] Coleman said. Top

University of Chicago Employee Assisted Housing program troubled or at least plateaued but mostly foreclosure free

Based on a Herald article July 16, 2008 by Sam Cholke:

The program provides an interest-free loan on down payment of $7,500 to employees that is forgiven after 5 years in return for certain commitments such as selling or continuing employment at the University. Application is down about 40%, due to normal plateauing (according to Metropolitan Planning Council) and the cooling housing market, and increasingly strict and difficult borrowing policies by mortgageers. (In June 67 applicants and 19 closings vs 77 and 24 in 2007.) MPO set up the program and the Neighborhood Housing Services of Chicago provides counseling. While 75% have chosen to live in HP, Kenwood or Woodlawn, choosing one of the other 6 or 7 neighborhoods designated brings lower qualifications. Fewer than 10 have left the program since its start in May 2003, and there has been only one foreclosure, said to be of a person who did not follow the counselor's advice.

New Metropolitan Planning Council data quantifies benefits of employer-assisted housing
Analysis of Milwaukee hospital data shows EAH participants are long-term, high-performing employees; Milwaukee is one of ten cities around the U.S. that MPC is assisting with EAH strategies.

Visit REACH Illinois for further information on the many benefits of EAH >>

Basic housing statistics on Hyde Park and Kenwood

From Chicago Rehab Network. Hyde Park plus Kenwood total pop. 48,000+

These stats indicate for Hyde Park and Kenwood that:

Community Area 40, Hyde Park

Population 2000

Total 29,920, +4.5% from 1990
Foreign born 16.3%
Aver. Household Size 2.0

Race and Ethnicity (2000 and % change 1990-2000)

White 13,000 (c. 45%) -9.8
African American 11,290 (c. 41%) +5.4
Hispanic 1,230 +37.4
Asian-Pacific Islander 3,382 +39.0
Other (new category) 998

Income (2000 and change. Inflation adjusted)

Median Household Income $35,991 -3.0 (Chicago $38,625 +9.6, Area $67,900 +16.8. Modestly below median and about 55% of Area. Slightly below Kenwood)
Persons in Poverty 4,428 (c 10 or 11%) -9.0

Income Distribution as % of Area Median Income and change

Low (>80% AMI) 4,121 (c. 40%) +18.4%
Moderate (80-120% of AMI) 2,545 (c. 30%) +7.2%
High (over 120 AMI) 2,556 (c. 30%) -18.1%

Income Distribution as a % of Chicago Median income and change

Low 6, 121 +18.4%
Moderate 2,545 +7.2
High 5,707 -6.9

Housing Units

Total 15,227 -0.7
Owner Occupied 4,551 +17.3%
Renter Occupied 9,809 +0.2
Vacant 867 -40.0

Units per Building (changes not shown in statistics)

1 unit 1,552
2-9 units 3,683
10+ units 10,018

Housing Market

% built since 1990 2.7
Rental Vacancy Rate 4.8% (-5.8)
Median Gross Rent $675 (+2.5)
Median Home Value $271,020 (-7.4%)

City owned vacant- 2, Project Based Section 8 - 161

Affordability and Housing Stress

Cost burdened renters sp. >35% of income on hsg- 3,681 37.5% of sample
Extreme cost burdened renters sp >50%- 2,461- 25.1% of sample
Cost burdened Owner Occupants 225 17.7% of sample

Overcrowded Households 532 3.7%
Lead Exposed Children 7.7% of tested

 

Community Area 39, Kenwood

Population 2000 and percent change from 1990

Total 18,363 +1.0%, foreign born 8.7%, average household size 1.8

Race and Ethnicity

White 2,915 -18.2%
African American 13,900 +0.3%
Hispanic 301 +24.9%
Asian-Pacific Islander 792 +74.8
Other 455

Income (2000 and change. Inflation adjusted)

Median Household Income $36,612 +19.8%. Slightly below Chicago median, 60% of Area median, slightly above Hyde Park.
(Chicago and Area see above in Hyde Park)
Persons in Poverty 4,368 -8.3

Income distribution as % of Area Median Income

Low income <80% of CMI 5,844 +5.0%
Moderate 80-120% 1,621 +18.3
High >120 1,471 -13.6

Income distribution as % of Chicago Median Income

Low income 3,998 -1.2
Moderate 1,329 +6.3
High 3,609 +7.9

Housing Units 2000 and change 1990 to 2000

Total units 9,974 -1.5
Owner Occupied 2,617 -24.9
Renter Occupied 6,318 -4.6
Vacant 1,039 -26/1

Units per Building (changes not in statistics)

1 unit 2,296
2-9 units 1,453
10+ 7,316

Housing Market

% Housing Units Built Since 1990. 6/4%
Rental Vacancy Rate 6.3% -7.6%
Median Gross Rent $611 +12.9 inflation adjusted.
Median Home Value $297,354 +65% infl. adj.

City Owned Vacant Properties 93
Project Based Section 8 Units 750 (cf. 161 in Hyde Park)

Affordability and Housing Stress 2000 and as % of sample

Cost Burdened Renters (pay >35% of income toward housing) 2,283 34.5%
Extreme Cost Burdened Renters (>35%) 1,578 25.%0
Cost Burdened Owner Occupants (>35%) 193 24.6%

Overcrowded Households 512 5.7%
Lead Exposed Children. 12.6% of tested

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from Affordable Housing Conditions and Outlook in Chicago: An Early Warning for Intervention.

March 2006. By Nathalie P. Voorhees Center for Neighborhood and Community Improvement, College of Urban Planning and Public Affairs, University of Illinois at Chicago. Lead: Yittayih Zelalem. With Chicago Rehab Network, Housing Action Illinois, and Latinos United. [Note also: the proportion of income to housing steadily goes up--and twice as fast for renters as for owners.]

Executive Summary

The Chicago region as a whole experienced a significant increase in population between 1990 and 2000 and the trend continued at an accelerated rate through 2004 in most counties. Simultaneously, the poverty rate increased in all counties between 2000 and 2004. The poverty rate in Cook County is the highest in the region at 14.6% although higher increases were recorded in other counties between 2000 and 2004 with the increase in Will County the most table at 83%. The number of housing units added to the stock also increased in all counties since 1990 although the increase did not keep pace with the increase in population. In addition, the units added to the stock, in the most part, are not targeted to address the increasing needs of low-income people. As a result, the housing stress for low-income households, particularly those with the least income and with larger families, is becoming more and more acute, further exacerbating the housing cost burden and overcrowding.

In Chicago, the affordable housing stress is even more pronounced with increasing demand on the one hand and declining supply on the other. There is little production of of housing affordable to to very low-income households, particularly those that earn below 30% of Area Median Income (AMI). While federal resources targeting low-income populations have been steadily declining, the limited resources that are available continue to be diverted to support the development of mixed-income communities on former public housing sites. In addition to the very limited production of housing for very low-income households, the problem continues to worsen because of the loss of existing affordable housing stock due to expiring Section 8 and tax credit units, public housing demolition, conversion of affordable rental units to market rate condos, etc. As a result, homelessness is on the rise.

In the light of these conditions, the study entitled "Affordable Housing and Outlook in Chicago: An Early Warning for Intervention" was launched by the UIC Voorhees Center and its partners... in order to gain a more precise understanding of the mismatch between the demand and supply of housing in general, and affordable housing in particular. The project has two general goals: the first is to categorize all households by income group and size and match them with units appropriate to their size and income, and the second is to assess what the demand and supply mismatch may be by 2010 in light of current trends.

Public Use Microdata (PUMS) data was used to do a detailed analysis by household size with households grouped as small (1-3 person households) or large (4-8 person households). A typology categorizing areas of the city with similar characteristics into seven sub markets was also developed to allow for more understanding and insight into conditions and possible strategies for each sub market.

Major findings: this short report summarizes the components of the study (the full report is available on the Voorhees Center website); and the following is a brief synopsis of the major findings contained in the report.

  1. Out of a total of 1,046,729 households in Chicago, 307,185 or nearly 30% are housing cost burdened; the following highlight the magnitude of the housing cost burden borne by low-income households:

    a) Over 72% or 181,030 extremely low-income households earning below 30% of AMI are housing cost burdened.

    [Small households: Less than 1/3 are in units that fit household size and paying no more than 30% of income on housing. The rest] are forced to occupy housing that is beyond their means and end up paying more than 30% of their income. [Why? Shortage of 84,252 appropriate units and] another 47,844 units... are taken up by higher income groups competing for these scarce units.

    [Large households: 45,934 (76%) out of 60,422 households pay more than 30%. There are enough units, but they] are taken up by households in other income/size categories.

    b) ...78,345 or 51% of households earning 31-50% of AMI are also housing cost burdened.
    Over half of all households (both small and large) in this income range are housing cost burdened in spite of the fact that there are more housing units within the range of this income group because many of these housing units are taken up by other household categories.
  2. The reverse is the case for moderate and small) many of whom pay under 30% for housing). Although there is a shortage of units within the strict range of these income groups, all units in lower income categories are accessible to them as a result of which many in these income categories compete with lower income groups.

    a) Out of 229,510 moderate-income households at 81-120% of AMI over 40,000 or 17.4 spend less than 30% of their income for housing. ...(35,000) or 21% of small and 5,400 or 8.4% of la rage moderate-income households compete with lower income categories to secure their housing and end up paying less than 30%

    b) Out of 237,717 higher income households at over 120% of AMI, 139,956 or 59% spend less than 30% of their income on housing. (126,966) or 67% of am all and 12, 9090 or 26% of large higher income households ..compete with lower income households to secure their housing and pay less than 30%.
  3. Unbalanced development and population trends. [city center and north shore] are increasingly becoming home to small upper income households at expense of small and large low income families. Communities surrounding the center are likely to see similar [trends].... Periphery communities, on the other hand, are experiencing increases in low-income households who are forced to move out of gentrifying areas. Communities of the north and far southwest with traditionally high rates of home ownership are increasingly losing higher income households and gaining low-income households, despite having little rental housing stock or affordable single family homes. Additionally, communities of the far south and southwest have lost both moderate and higher income households and experience the second highest increase in low-income households. Because they have relatively higher affordable housing stock, these communities become the natural path of least resistance to households with limited housing options.
  4. Increasing overcrowding. [In all areas of the city--especially homeowning areas with Latinos moving in--up to 121% 1990-2000.]
  5. Outlook- Trends suggest that the housing stress for low-income households is likely to get worse:

    [Small low-income households rose while rental housing declined. Small households making over 80% AMI increased twice as fast as former and housing for them also declined. Units for large low-income went up a bit while numbers went up.]

    Overall, low-income households will continue to grow at a much faster rate than t he development of affordable and suitable housing. The projected shortage in rental options is a serious concern because few low-income households can afford to buy a house in the city. The gap between demand and supply of rental housing is likely to widen further with the potential loss of existing units because of expiring contracts, condo conversion, public housing transformation, etc.

The findings of this report demonstrate the current and projected mismatch between demand and supply of affordable and suitable ho suing for low-income households, particularly those earning below 30% of AMI...
....proactive steps may be taken to avert or mitigate an impending crisis that will affect not only those directly impacted but society as a whole.

[A racial/ethnic as well as income pattern noted is the reshuffling and reconcentration of groups, not a net increase in diverse communities over time.

What is the relationship of income, family size, and percent of Area Median Income? Shown in tables. Example at the low end:
0-30% of AMI is $14,250 for one person, $20,350 for family of 4, $26,900 for family of 8.

The study indicates the supply of affordable housing (as they define it) is declining a=nd the city's plan for affordable housing production has fallen far short of projections (especially for larger families) as well as need and has been skewed to higher income renters and especially buyers. There is insufficient focus on those most stressed.

What is the size of households in Chicago? (all have increased except 7-person) (approximate)

1 person 340,000, 2 person 275,000, 3 person 160,000, 4 person 130,000,
5 person 75,000, 6 person 45,000, 7 person 20,000, 8 person 15,000.

Where is "affordable" housing? Mainly in South and West side that have been long "soft" markets, i.e. poor quality stock. And what does the city look like if community clusters are lumped into 7 sub markets? Hyde Park and west to the Ryan are lumped into a grouping down to about the Stevenson that is called early to mid stage gentrification, Areas to the south including Woodlawn and South Shore are lumped into Gentrifcation Pressured. [Ed. caveat- the variation within each grouping is such as require great care in drawing local conclusions as well as in comparing the large sub markets--as with use of census tracts.]

Gentrifying. Heavily from the Loop to the northern boundary and northwest and west halfway to the border. Less further along in the Uptown-Edgewater strip, a band west of the Chicago River, and from the Stevenson through Hyde Park and west to the Ryan.

Gentrification pressured. Three clusterings- west half of the west side to mid northwest side, a section surrounding the Stevenson down to Garfield [5500 S.] almost to the western edge, and the neighborhoods south, south and southwest-southeast of Hyde Park.

Crowded. A wedge from Pilsen south[west?] to city edge, surrounded by Gentrifying on north and east and on the rest of both sides by Gentrification pressured.

Accessible. Almost all the rest of the far south and southwest side.

Mixed income and mixed tenure. Most of the far northwest side between Gentrification and Stable Homeowning as one nears O'Hare.

Stable homeowning. Southwest and northwest sections, not very deep.]

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Some more facts, from Metropolitan Planning Council December 2006:

Did you know..Illinois minimum wage is going up rom $6.50, but average entry level position in Cook County is 8.79 ($18,293 per year). But to afford a 2-bedroom apartment, a 40 hour household has to earn $17.98 an hour.
A majority of CHA residents still do not have jobs despite thousands of placements, and the average income of those who do is $15,000. 89% of those in moving-to-work still live under the 2002 poverty level.
Ability to afford a home is the basic indicator of self -sufficiency but many residents have to pay much more than 30% on housing. A family earning over $59,000-- isn't even eligible for federal assistance, and only a small percentage of those eligible get assistance; 30 percent of the ineligible are "severely" housing cost burdened (spending over half on housing). To be eligible for new or rehabbed homes in mixed income communities, CHA requires work at least 30 hours a week or be in training.

Neighborhood Housing Services/Neighborhood Lending Program gets $100 million commitment over 3 years from city, private lenders for new homes, home repairs for low and moderate income families

This program in 2003 consolidated 6 partnership programs of the city and private financial institutions. Between then and 2006, it a leveraged $90 million in loans from $32 lenders t asst 1,300 homes. One dollar leverages 9 from the private sector.

1800 882-0882.

The City-managed Chicago Partnership for Affordable Neighborhoods (CPAN) is expanding programs for affordable condos; Community Land Trust

Formed in 2002, the program is moving ahead on making at least some affordable condos available in more market rate housing developments in more parts of the city. It's properties will mostly be in the Chicago Community Land Trust started in 2006. (Meant to encourage long-term affordability, there are restrictions on what these CLT properties can be resold for.) One to the north of here is Jazz on the Boulevard east of cottage Grove on Bowen. CPAN offers incentives that actually get up to 20 percent affordable units.

But of course there is the question of what's affordable and to whom, especially in light of the sub-prime meltdown.) How do you qualify? Household must earn less than 100% of Chicago median income. for singles that's $52,800, for 2 60,300 and on- if so, you can buy at reduced price. If you earn less than 80% ($41,700, $47,700...) you can receive assistance.

From the Tracking Community Trends II page: The state of and options for diversity and affordability in housing in HPK and surrounding areas.

Diversity, inclusiveness, including re: housing change. (See more in following section, and in Neighborhood Profiles.) Hyde Park is overall and locally more diverse and integrated than nearly every other community in the region and than it has been in at least a long time, if ever, according to the 2000 U.S. Census and widespread observation. There are fewer blocks that are exclusively, or even by large majority, the home of one racial, ethnic or income group. The the number of nationalities and ethic groups present in small or substantial numbers has been large for over a century but is now if anything even higher, with Spanish and Asians having increased to recognizable presence. Non-Spanish whites and blacks are in about equal numbers, neither being a majority but together about 90 percent. See a breakdown