Highland Park, Illinois Affordable Housing Trust Fund
Highland Park, Illinois Affordable Housing Trust Fund. History. The Housing Trust Fund is an outgrowth of the process begun in the late 1990s to update the City of Highland Park’s Comprehensive Master Plan.
Highland Park, Illinois Affordable Housing Trust Fund
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Presentation Transcript
History • The Housing Trust Fund is an outgrowth of the process begun in the late 1990s to update the City of Highland Park’s 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.
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
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
Implementation • City Council adopted the Affordable Housing Plan as an element of the City’s 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
Key Issues for Highland Park’s Housing Trust Fund • Purpose • Beneficiaries • Oversight and Administration • Program • Funding
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
Beneficiaries • HTFs target households with incomes ranging from 30% AMI to 120% AMI • Highland Park’s program requirementsimpose income limit of 100% AMI, with emphasis on 80% AMI or below • Priority for people who live or work in community
Oversight and Administration • Highland Park’s 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
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
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
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
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
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
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
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.
Getting Started • Resource: Center for Community Change, www.communitychange.org Mary Brooks was very helpful • Adopt ordinance • Develop program requirements and process for use and awarding of funds • Develop structure for program administration
