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Highland Park, Illinois Affordable Housing Trust Fund.

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Presentation on theme: "Highland Park, Illinois Affordable Housing Trust Fund."— Presentation transcript:

1 Highland Park, Illinois Affordable Housing Trust Fund

2 History The Housing Trust Fund is an outgrowth of the process begun in the late 1990s to update the City of Highland Parks Comprehensive Master Plan. The City Council directed the 25 year old Housing Commission to develop an affordable housing plan as an element of the Master Plan.

3 Context for Affordable Housing Plan Rising land values Loss of affordable units Limited options for people who live or work in the community Increasing difficulty in recruiting/retaining workers

4 Master Plan Process Review of best housing practices Recommended strategies to promote affordable housing include: –Establish Housing Trust Fund –Create a Community Land Trust –Adopt an inclusionary zoning policy Flexible tools tailored to local needs

5 Implementation City Council adopted the Affordable Housing Plan as an element of the Citys Comprehensive Plan in January of 2001 Affordable Housing Trust Fund was established by ordinance of the City Council in May 2002 Community Land Trust was created in March 2003 Inclusionary Zoning Ordinance passed by the City Council in August 2003

6 Key Issues for Highland Parks Housing Trust Fund Purpose Beneficiaries Oversight and Administration Program Funding

7 Purpose To provide a reliable and flexible source of local funding for activities that address the affordable housing needs of low- and moderate-income people who live or work in Highland Park

8 Beneficiaries HTFs target households with incomes ranging from 30% AMI to 120% AMI Highland Parks program requirements impose income limit of 100% AMI, with emphasis on 80% AMI or below Priority for people who live or work in community

9 Oversight and Administration Highland Parks Housing Commission is designated as the oversight board It has sole responsibility for approving funding awards – removing the funding award from the political process Commission is assisted by a 7-member Advisory Committee

10 Elements of Operations Setting annual goals and budget Establishing policies, funding priorities, program requirements, procedures for disbursing awards Preparing notices of fund availability or requests for proposals Reviewing applications, approving and monitoring awards Evaluating HTF activities Reporting to City Council Fiscal management of fund

11 Program Examples Housing production (new construction, rehab, rental, ownership) Acquisition Rental assistance Home buyer assistance Land trusts Preservation of existing housing Housing-related services Capacity grants to support not-for-profits that address affordable housing needs

12 Highland Park Program Broad latitude under ordinance Current focus: build inventory of affordable housing –Fund housing development –Set-aside in ordinance to support CLT operations and developments

13 Affordability Requirements In Highland Park HTF-assisted units in for-sale developments must be kept affordable in perpetuity or as long as is legally permissible HTF-assisted units in rental developments must be kept affordable for at least 25 years Housing Commission will ensure on-going affordability through a grant agreement and deed restrictions, covenants or other related instruments that run with the property

14 Funding Examples Dedicated revenue from one or more sources –Property tax –Real estate transfer tax –Sales tax –Fees (e.g., commercial linkage fees, inclusionary zoning in lieu payments, condominium conversion fees) Other revenue sources (non-dedicated) –General revenue allocation –Bond issue –Corporate or foundation support

15 Funding: Highland Park Revenue dedicated from affordable housing demolition tax ($10,000/unit or $3,000/unit for multi-unit buildings) Revenue dedicated from demolition permit fee ($500/unit) Revenue dedicated from inclusionary zoning in lieu payments Revenue from sale of bond cap ($30,000 annually) Revenue from Commission resources (refinancing of existing properties - $1,000,000 from one property and approx. $2,400,000 from another

16 Use of Funds: Highland Park To date, Highland Park has approved grants totaling $950,800. –3 operating grants for HPICLT –2 development proposals for family housing from CLT 6-unit town home new construction 3-unit scattered site acquisition of existing homes –1 grant for a moderate-income homeowner rehabilitation program.

17 Getting Started Resource: Center for Community Change, Mary Brooks was very helpful Adopt ordinance Develop program requirements and process for use and awarding of funds Develop structure for program administration

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