Comparing & Contrasting CLTs in Urban & Suburban Locations Highland Park, Illinois West Humboldt Park, Chicago

Highland Park West Humboldt Park

Characteristics for 2000 Highland Park West Humboldt Park West Humboldt Park CLT Target Area Total Population31,36552,21721,309 % White91.2%15.4%5% % Black1.8%57.7%85% % Latino8.9%39.311% % Asian2.3%0.4%1% Median Household Income$100,967$26,844$24,389 Median Property Home Value$392,000 $95,350$84,191 Average Household Size Median Age % College Bachelor Education61.6%5%6% % Families Below Poverty2.3%30%32% Owner-occupied82.1%38%37% Renter-occupied17.9%62%63% (Source: 2000 Census, STF 3) Demographics of Highland Park and West Humboldt Park as of 2000

West Humboldt Park Community

First Community Land Trust of Chicago  Mission:  Create opportunities for local home ownership for households presently not income-qualified for the city’s existing affordable homes program.  Enable low-income households to enjoy positive participation in community – and economic-development policies impacting area.

What is the Need for this CLT?  Affordable housing  To impact policies purportedly benefiting low-income households  To enable low-income residents to improve their participation in Chicago’s economy and social fabric

CLT Progress  Created the bylaws and ground lease  Arrived at a resale formula  Received 501(c)3 non-profit status  Hired a development consultant  Issued a RFP to builders  Formed an interim board of directors  City set aside land for 10 CLT homes  Established rights/criteria for membership  Garnered attention of policy area inside City of Chicago

Development Sites  Already secured 10 City-owned vacant sites at no cost to the organization

CLT Homes and Homebuyers  Single-family detached homes  Households with annual incomes that are less than $40,000  Preference given to those who already live in the community  Anticipate CLT selling prices below those of current affordable housing program selling prices

Membership Organization  The Board is a reflection of the membership  Voting members must live in the community  Three-tiered  Lessees  General-neighborhood representatives  Public-outside the neighborhood, corporate/institutional

City of Highland Park

What is the Highland Park Illinois Community Land Trust (HPICLT)?  Incorporated in March 2003, HPICLT is a private not-for-profit 501(c)(3) organization, created to own land for the benefit of the Highland Park community. HPICLT provides and preserves permanently affordable housing on this land.

How Did HPICLT Get Started?  HPICLT 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.  Creation of a community land trust was a key recommendation of the affordable housing plan adopted by the Council.

A Precursor to the CLT: The Single Family Home Ownership Pilot Program Created in units sold to low and moderate-income families

How is HPICLT Governed?  A nine-member Board of Directors governs the HPICLT.  The Board is comprised of a cross-section of key stakeholders in the community with an interest in affordable housing.

Board Composition  Three are “public representatives,” including at least one City Council member and at least one member of the Highland Park Housing Commission.  Three are “lessee representatives,” including individuals who live on land owned by HPICLT or who represent organizations that serve the interests of the target population.  Three are “general representatives” from the community at large.

How Does HPICLT Acquire Property?  HPICLT purchases properties available on the market. It also can receive donated properties.  In many cases, HPICLT is competing with builders for homes they wish to tear down.  Properties can include a variety of housing, such as single-family homes, duplexes, town homes, condominium units, small multi-unit buildings, as well as undeveloped land.

Who Lives in HPICLT Homes?  Majority of households served must have incomes that do not exceed 80% AMI (approximately $58,000 for a family of 4).  Maximum income limits vary, depending on funding source requirements, but do not exceed 115% AMI.  Priority is given to low and moderate-income individuals and families who live or work in Highland Park.

Home Buyers  The combined assets of a household may not exceed 150% of AMI for the household size (for a family of 4, assets can not exceed $113,100).  Home buyers must qualify for a mortgage from a participating lender.  Home buyers must contribute a minimum of 1% of the net purchase price as earnest money towards the purchase of the home.

Temple Avenue Town Homes

Successful First Development Temple Avenue Town Homes:  6 town homes constructed in  Three-bedrooms, two and one-half baths, 2 car attached garage.  $35,000-$75,000 was the range of incomes of those households purchasing town homes.  Homes were sold at prices ranging from $110,000 to $190,000.

Rocky and Estella Flores are pictured with their two children. They were one of the first buyers at the Temple Avenue Town Homes. Rocky is employed by the City’s Public Works Department and Estella works for North Shore School District 112.

Comparing & Contrasting Strengths  HPICLT:  Executive Director has 15+ years experience in housing  Dedicated source of funding - Housing Trust Fund  City government was instrumental in establishing organization  City staff very supportive  Pro bono Support  First CLT of Chicago:  Strong political support  Active community participation in local development programming  Outgrowth of an existing organization  City of Chicago land set asides  Pro bono support

Comparing & Contrasting Challenges  HPICLT:  Over-reliance on a single source of income  Single-staffed  High land and housing prices  Loss of political support  Disparity between effort and amount of product and people served  First CLT of Chicago:  Fundraising  High construction costs  No prior experience in housing development  Strong competition city- wide with other non- profits  Cultivating wider political support