December 9, 2010

Department of Community Development Announces Affordable Housing Results for Third Quarter 2010

Molly Sullivan    312.744.2976

molly.sullivan@cityofchicago.org

The Department of Community Development (DCD) today released its third quarter results, which ended September 30, 2010, reporting that it is making good progress on its five year affordable housing plan and that it has met its goal of obligating all of its round one Neighborhood Stabilization Program (NSP) funds ahead of schedule.

Consistent with the goals of the plan designed to create and preserve healthy communities, DCD met several of its critical targets despite a tough economic climate.

“As we continue to make progress in reaching our goals, the results of our performance are a clear illustration of an effective partnership between the public and private sectors,” DCD First Deputy Commissioner Ellen Sahli said.  “While working together in this uncertain economic climate, we have helped Chicago families with modest incomes obtain quality housing and pursue economic opportunities.”

Through the third quarter of 2010, the Department committed over $276 million in resources to support over 5,000 units of affordable rental housing and $26 million to help 519 households achieve or sustain homeownership.  To help residents repair, modify or improve their homes, the City committed $12 million to support 1,400 units.

The results through the third quarter, which represent the City’s progress on the Five-Year Affordable Housing Plan 2009-2013, show the Department committed over $315 million in funds to support over 7,000 units, which represents 76 percent of the 2010 unit goal and 77 percent of the 2010 resource allocation goal.

By year’s end, DCD projects to commit over $407 million in resources to support 9,523 units of housing.

In the third quarter of 2010, the City Council approved financing for four multifamily developments, provided over 750 homeowners the tools they need to protect their homes from foreclosure by hosting two Fix Your Mortgage and one Borrower Outreach event, and hosted the 7th Annual Chicago Rents Right Expo bringing information on rental housing resources to the attention of 150 tenants and landlords.

Third quarter 2010 highlights include:

  • The City approved the construction of the Naomi and Sylvester Smith Senior Living Center in the Auburn Gresham community.  The new development, to be located at 8130 South Racine Avenue, will bring 60 one-bedroom apartments in a five-story building to seniors, age 62 or older, whose incomes are within 50 percent of area median income.  Tenants will pay 30 percent of their income towards rent and HUD will pay the balance of the rent.
  • Also approved was a plan for the construction of Independence Apartments, part of the Homan Square Redevelopment Plan in the City’s North Lawndale community, which will bring 42 units of mixed-income rental housing in a structure with seven attached six-flats designed to look like one building.   The $8.8 million development will be built by Homan Arthington Foundation.
  • A loan agreement, the conveyance of three City-owned parcels and fee waivers were approved for the construction of Roseland Village Intergenerational Apartments in the Roseland community.  The 10-unit complex will part of a senior campus, located between the 10400 and 10500 block of South Michigan Avenue, and will also feature a park.
  • The City approved the sale of land and a $1.5 million loan for Hope Manor Apartments, a proposed $14.4 million development to provide housing with support services for 80 homeless veterans on the City’s West Side.  The four-story building at 3053 West Franklin Boulevard will include 30 studios, 10 two-bedroom and 10 three-bedroom units. 
  • As of September 1, 2010, the City has reached its goal of committing to projects all of the $55.2 million it received in round one of the Neighborhood Stabilization Program.  Mayor Daley announced that HUD has allocated an additional $15.9 million in round three NSP funds to the City, bringing the NSP grant total to over $170 million, the highest of any other local government.  The City also received $98 million in round two.  The City is using the money to acquire and rehabilitate foreclosed properties and turn them into affordable housing units. 

As of the third quarter, 343 units have been acquired and construction has started on 84 of those units.  Also, the first home to be rehabbed with NSP funds was sold to a qualified homebuyer.  Homebuyers interested in purchasing a Chicago NSP home can visit www. chicagonsp.org for information.

DCD continued to get the word out about foreclosure prevention services that are provided free of charge from trusted non-profit organizations working in partnership with the City of Chicago.

  • A Borrower Outreach Day (BOD) was held in September, providing 140 families the tools that they need to protect and prevent their homes form going into foreclosure. BOD offers participants loan work-out sessions with counselors and lenders and information about the City’s financial literacy programs.
  • The City with the help of a number of partners also sponsored two Fix Your Mortgage events that helped 612 households with loan modifications offered by the federal Making Home Affordable Program.

Information on these and other Department of Community Development programs is available by calling 311 or visiting www.cityofchicago.org/dcd.

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