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Critical Decision Making: Designing Rental Subsidy Programs. NAEH 2006 Annual Conference Presentation by Betsy Benito Chicago Department of Housing. Innovative Housing Subsidy: Chicago Low Income Housing Trust Fund (CLIHTF). City-funded rental assistance program in operation since 1990

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critical decision making designing rental subsidy programs

Critical Decision Making: Designing Rental Subsidy Programs

NAEH 2006 Annual Conference

Presentation by

Betsy Benito

Chicago Department of Housing

innovative housing subsidy chicago low income housing trust fund clihtf
Innovative Housing Subsidy:Chicago Low Income Housing Trust Fund (CLIHTF)
  • City-funded rental assistance program in operation since 1990
  • Land-lord based program – provides “grants” to landlords to write down the rents for households below 30% AMI
  • CLIHTF currently targets special needs populations through small-scale programs: Families First, Street to Home, HUD SHP including Chronic Homeless Initiative
major victory clihtf will double its capacity in 2006
Major Victory: CLIHTF will double its capacity in 2006
  • State legislation passed/signed in 2005 adding a $10 surcharge on real estate recording fees
  • New fee will generate $13 million or 2,000 rental subsidies for Chicago (doubling the number of households served)
  • Half of these new resources will be earmarked for Chicago’s Plan
challenge and opportunity re designing the clihtf
Challenge and Opportunity: “Re” Designing the CLIHTF
  • Goal is to design newly allocated resources to make meaningful progress in our Plan to End Homelessness
  • Opportunity – exciting new resources with very few restrictions going to an existing, successful rental subsidy program
  • Challenge – deciding the best use of the resources amidst competing sub-populations
pending proposal with the trust fund for use of new resources
Pending Proposal with the Trust Fund for Use of New Resources
  • Current proposal developed by the Department of Housing and Department of Human Service seeks to meet the projected permanent housing resources needed to achieve the Plan
  • Permanent housing projections are driven by both data and assumptions on the use of Chicago’s shelter system
  • The pending proposal attempts to serve singles and families through short and long-term rental support.
summary of data and assumptions about chicago s homeless system
Summary of data and assumptions about Chicago’s homeless system
  • 48% of sheltered homeless are disabled as defined by HUD (90% single, 10% family)
  • 15% of sheltered homeless exit to unsubsidized, private market housing
  • 37% need short term rental subsidy
  • 70% of Chicago’s shelter beds are occupied by the same people throughout the year
  • 20% of sheltered homeless earn income from employment
summary of doh dhs pending proposal
Summary of DOH-DHS Pending Proposal
  • 80% of the resources to be used as long-term rental subsidy (traditional CLIHTF)
    • 90% to singles (with set aside for chronically homeless, ex-offenders, other disabled)
    • 10% to families (priorities being considered for large families, Axis I and Axis II disabilities)
  • 20% of the resources to be used as short-term rental subsidy which would require a CLIHTF policy shift
    • For singles and families that may be non-disabled, current or recent attachment to the workforce, small families, etc.
  • We don’t want to create an incentive to use shelter, so are also designing how the households would be selected
related challenges the need and funding of services
Related Challenges: the need and funding of services
  • Community advocates are pushing for new funding of supportive services for the homeless-dedicated CLIHTF subsidies
  • Question: what is already being paid for in the system (city or federal funding) that would now serve people in housing versus shelter?
  • We need to understand better the service needs of our target populations, existing resources, and how to allocate new resources
next steps and timeline in completing the design
Next Steps and Timeline in Completing theDesign
  • Get the Trust Fund to finalize its commitment and approve the DOH/DHS proposal
  • Identify existing service “slots” already funded to support households in permanent housing
  • Implement a tenant selection process to support the design
  • Funds are expected to be available no earlier than October 2006
  • May take six months to fully allocate/commit resources
contact information
Contact Information
  • Betsy Benito, Projects Administrator, Chicago Department of Housing
  • Ellen Sahli, Mayor’s Liaison on Homelessness and Supportive Housing
chicago low income housing trust fund background
Chicago Low Income Housing Trust Fund – Background
  • Established by City Council ordinance in 1989
  • Incorporated as a non-profit organization in 1990
  • 15-member Board, appointed by the Mayor
  • Staff and administration provided by the Chicago Department of Housing
  • Annual budget is $13 million (54% from City Corporate funds)
  • Budget expected to nearly double in 2006
trust fund targets very low income chicagoans
Trust Fund Targets Very Low Income Chicagoans
  • Program targeted to households at or below 30% of Area Median Income ($22,600)
  • By ordinance, at least half of the Trust Fund resources must be used for families between 0-15% of AMI
  • 2,000 very low-income households are assisted annually
  • Over 25,000 households have been assisted since 1990 (includes duplication)
trust fund programs
Trust Fund Programs
  • Rental Subsidy Program
    • Major program – 54% of funds
    • Corporate funds
  • Affordable Rents for Chicago (ARC)
    • Interest free, forgivable loans to replace up to 50% of a developer’s private mortgage
    • Savings used by developer to reduce rents of tenants below 30% of AMI
    • Examples: 2004, 66 units received ARC assistance
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