hbagc the case for private affordable housing initiatives
Post on 20-Jun-2015
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Promoting Progressive Policiesfor a promising future
DPDCHICAGO DEPARTMENT OF PLANNING & DEVELOPMENT
Affordable housing impacts every aspect of the local economy.
• EmploymentEmployment• Consumer spendingConsumer spending• Small businessSmall business• Property taxesProperty taxes• Sales taxesSales taxes• DiversityDiversity
• EmploymentEmployment• Consumer spendingConsumer spending• Small businessSmall business• Property taxesProperty taxes• Sales taxesSales taxes• DiversityDiversity
• Population shiftsPopulation shifts• Federal fundingFederal funding• Public servicesPublic services• EducationEducation• Health careHealth care• Crime preventionCrime prevention
• Population shiftsPopulation shifts• Federal fundingFederal funding• Public servicesPublic services• EducationEducation• Health careHealth care• Crime preventionCrime prevention
Despite best intentions, subsidized development costs are out of control.
New Construction*
>$350,000Rehab**
$418,035
* City of Chicago—Bouncing Back: Five Year Housing Plan 2014 – 2018
** Chicago Rehab Network—Accepting the Challenge: Five Year Affordable Housing Plan, 2009 - 2013
Unit Cost
“These high costs make the construction of affordable housing extremely difficult to achieve at the
necessary scale.”
--City of Chicago Bouncing Back: 2014 – 2018 Five Year Housing Report
(page 27, section 4.5)
The cost of disinvestment is exponential, and impacts everyone.
• Dozens of projects cancelled
• Thousands of affordable units lost or not available for families who need them
• 57 of 77 Chicago neighborhoods lost population over the last 10 years
• Englewood, Little Village, Pilsen and Logan Square lost between 8,000 and 12,000 residents each
• Lost development fees, sales taxes, property taxes, federal funding and rental subsidies
In collaboration, we can create private, structural solutions for
Chicagoland’s affordable housing challenge.
After all, 75% “of all affordable rental housing is provided by non-subsidized
operators.”--Joint Center for Housing Studies at Harvard University
Private sector solutions free public resources to be applied where they’re most impactful.
Diverse, healthy communities = better performing investments.
But private solutions require institutional investment.
And institutions have minimum performance thresholds for investment.
So let’s map out a plan that serves the interests of all stakeholders.
Together we can leverage a recovering economy and build a Chicago that works for everyone.
DPDCHICAGO DEPARTMENT OF PLANNING & DEVELOPMENT
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