NH & RA Summer Institute Mixed-Income and Workforce Housing Case - - PowerPoint PPT Presentation

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NH & RA Summer Institute Mixed-Income and Workforce Housing Case Studies Reclaiming Southwest Chicago (Chicago, IL) Saturday, July 21, 2018 Nick Brunick, Partner Applegate & Thorne-Thomsen, P.C. 440 S. LaSalle, Suite #1900 Chicago,

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NH & RA Summer Institute Mixed-Income and Workforce Housing Case Studies Reclaiming Southwest Chicago (Chicago, IL) Saturday, July 21, 2018

Nick Brunick, Partner Applegate & Thorne-Thomsen, P.C. 440 S. LaSalle, Suite #1900 Chicago, IL 312-491-3328

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Reclaiming SW Chicago

Southwest Organizing Project (SWOP) Brinshore Development United Power for Action and Justice

1. St Gall Church
2. St Clare of Montefalco Church
3. Talman Elementary School
4. Gage Park High School
5. Morrill Elementary School
6. Lawn Terrace Independent Living
7. Inner-city Muslim Action Network
8. St Rita of Cascia Church
9. Fairfield Academy Elementary

School 10.Churchview Senior Campus 11.SWOP, NHS, GSDC 12.Marquette Elementary School 13.Beth Shalom B’nai Zaken Ethiopian Hebrew Congregation 14.Catalyst-Maria School 15.Sisters of St Casimir Motherhouse 16.Holy Cross Hospital 17.Nativity BVM Church 18.McKay Elementary School 19.St Adrian Church ฀ Other SWOP member institutions

SWOP Member Institutions

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Southwest Chicago Hard Hit By Foreclosures

Foreclosures initiated January 2011-December 2012 Zip code 60629

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Phase I Area

53 Homes and Apartments (by Brinshore/SWOP)
55 Homes and Apartments by Local Contractors (Private Development)

Reclaiming Southwest Chicago Is About:

1. Creating Affordable Homes, Good Schools, and a Safe Neighborhood 2. Transforming Vacant Properties Into Affordable Homes 3. Organizing a pool of renters and buyers who want to reclaim the neighborhood 4. Supporting Existing Owners by Helping Families Stay in Their Homes 5. Developing Neighborhood Leaders There were nearly 700 vacant properties in 2012 in our community. SWOP, Brinshore Development and local contractors are purchasing and rehabbing buildings and then selling or renting them to people from our pool of owners and renters who are committed to Reclaiming SW Chicago.

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Phase I – Brinshore/SWOP The Washtenaw Building (13 Apartments)

Development Sources 1. Illinois AG National Foreclosure Settlement Funds: $1,460,000 2. * City of Chicago CDBG Funds $900,000 3. * Build IL Bond Program $900,000 *8 Apartments at or Below 80%; 5 Apartments Unrestricted Market Rate

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Phase I – Brinshore/SWOP 30 Unit 9% Tax Credit Project

PHOTO Development Sources * 9% LIHTC Equity $6,800,000 * NSP Funds $2,715,000 * DDF $150,000 9 Different Buildings Households Served *All 60% AMI or below

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Phase I – Brinshore/SWOP Rehabbed Homeownership Homes

Ten SF Homes

Sources: 1. $1,540,000 in AG Grant Funds
2. Approximately $1,000,000 in sales proceeds

* Homebuyers at 80-120% of AMI

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Phase I – Local Contractor Properties

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Cumulative Development Impact

SWOP BRINSHORE/SWOP 20 properties/53 units Local Contractor Developers 25 properties/55 units Total Impact: 45 properties/108 units

Local Contractor Brinshore/SWOP

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Phase I Impact Vacant Buildings – 2012 vs. Today

93 properties/June 2012 13 properties/September 2017

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Phase I Impact

Over 55% Decrease in Crime Significant Improvement in all Local Schools Significant Increase in Property Values Reduction in Vacant Properties Neighborhood-Wide from 700 to 200

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Phase II target areas Phase I target area Original focus area

Phase II – Finishing the Work

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Phase 2 Sources and Approach

$3 million in private donations (in hand now)
Use Illinois Affordable Housing Tax Credits (“State Donation Tax Credits”)

to leverage $3 million into $4.36 million

$3 million cash donation generates a $1.5 million State Donations Tax Credit

Certificate

Sell $1.5 million State Donations Tax Credit Certificate at $0.90 = $1,350,000
Plus $10,000 required donation from the Credit Certificate Buyer = $1,360,000
Utilize some agency soft funds
Utilize some hard debt
Utilize some employer-assisted housing funds from local employers

Brinshore/SWOP raises $10-12 million to acquire and rehab another 50 plus homes and apartments SWOP works with local contractors to fill in after the Brinshore/SWOP acquisitions

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Operate Strategically, at Scale, and in a

Comprehensive Manner

Use of Traditional Financing Tools to Support

and Stimulate Private, Workforce Housing

This Stuff Really Works