1. Highland Park, IllinoisAffordable Housing Trust Fund

2. 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.

3. 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

4. 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

5. 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

6. Key Issues for Highland Park’s Housing Trust Fund • Purpose • Beneficiaries • Oversight and Administration • Program • Funding

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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.

17. 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