Neighborhood Stablization Program 2
Housing is the cornerstone of healthy communities. CMAP's initiatives seek to integrate housing into our long range comprehensive planning processes as well as to be responsive to current housing market conditions. The CMAP Board's Strategic Report on Visioning, Governance, and Funding calls for the agency to address housing issues as part of the overall comprehensive plan, particularly addressing housing conditions, type, affordability, and location. To meet regional priorities, the location, availability, and affordability of housing needs to balance with that of jobs, access to transportation, and protection of open space and natural resources. The escalating costs of housing force some families to move farther from employment centers to seek out reasonably priced housing options , even though such savings may be partially or even completely offset by the increased transportation expenses of longer commutes. CMAP seeks to explore sound policy decisions that assure residents of northeastern Illinois safe, decent and affordable places to live. Here is CMAP's Housing Fact Sheet which includes a set of housing principles.
Given the current housing market crisis, CMAP has been involved in several initiatives that aim to provide communities with the tools they need to be responsive to foreclosures within their communities. In 2008, CMAP has hosted several workshops and conferences, and initiated several projects aimed at addressing these issues. They include:
- Legislative reviews and proposals aimed at strengthening municipal authority to resolve issues with vacant and foreclosed properties. CMAP will work with with the Metropolitan Mayors Caucus and Business and Professional People's for the Public Interest (BPI) to develop a sound legislative package to address foreclosures in the state of Illinois during the spring 2009 legislative season. The legislation is aimed to do three things:
- First, the bill will require that municipalities receive notice when a foreclosure is initiated and completed, and when a tax delinquent property has its taxes sold. Too often, municipalities only learn that properties are vacant after the buildings have started to cause problems. The bill will provide a vital early warning system, so local officials can take action to protect their communities' neighborhoods. The bill will also require that contact information be provided to municipalities to make it easy to reach the person responsible for maintaining the property. Currently, acquiring this information is difficult, expensive, and tremendously time consuming.
- Second, the bill will authorize municipalities to create land banks, which have been a very effective tool in other states to get properties back into productive use and on the tax rolls. Land banks can acquire, rehabilitate, and manage vacant and abandoned properties, for the purpose of packaging and reselling them to promote economic development and community revitalization.
- Third, the bill will give municipalities more resources to ensure that vacant and abandoned properties are well maintained. This will let them hold banks responsible for maintaining their vacant and abandoned properties. If a bank fails to maintain a property as required under local laws, officials will be able to have the maintenance work done and pass the reasonable cost of doing the work on to the responsible parties. They will be authorized to place liens on the property to pay for such work, with confidence that the money can be recovered because -- in a foreclosure -- the bill would require that these municipal liens must be paid off before the mortgage. This will significantly expand municipalities' ability to stabilize and protect our neighborhoods.
- Best Practices- CMAP in partnership with the Metropolitan Mayors Caucus and Business and Professional People's for the Public Interest are developing a best practice manual for addressing foreclosures. The manual will include model ordinances and case studies from around the region of communities taking measures to address vacant buildings as a result of foreclosures.
- Regional Homeownership Preservation Initiative (RHOPI)- Building on the success of the City of Chicago’s Home Ownership Preservation Initiative (HOPI) program, launched in 2003 a new model for addressing foreclosures at the regional level is now underway. The Regional Home Ownership Preservation Initiative is a partnership of the Federal Reserve Bank of Chicago, Neighborhood Housing Services of Chicago, and The Chicago Community Trust and key stakeholders from across the region. Four task forces are meeting to identify and prioritize problems and solutions. Regional HOPI will produce an action plan that identifies specific lead stakeholders and timeliness to guide implementation strategies. CMAP in partnership with the Metropolitan Mayors Caucus, Metropolitan Planning Council and Chicago Metropolis 2020 will continue leading the efforts in addressing vacant in foreclosed properties in the Chicago region.
- Neighborhood Stabilization Program- The U.S. Department of Housing and Urban Development (HUD) recently allocated $3.92 billion in grants to help states and communities deal with foreclosures. (Visit http://www.hud.gov/nsp/ to read about the Neighborhood Stabilization Program, also described in a HUD press release.) Our state's portion of the allocation is $170 million. The funds have been allocated specifically to acquire and redevelop foreclosed properties that might otherwise become abandoned and/or sources of blight. Given the limited time frame for developing a plan and expending the funds, CMAP and its partners are seeking to facilitate information sharing among the grantees, which will be key to leveraging additional assistance and maximizing impact. CMAP has served a coordinating role in convening NSP recipients to discuss implementation of the program. CMAP has hosted four NSP implementation events, established an active list serve for NSP and established an NSP recipient coordinating committee.
Recent & Upcoming Foreclosure Events:
Recognizing that there remain many unanswered questions and practical strategies on how to effectively put Neighoborhood Stabilization Program funds to best use, The Chicago Metropolitan Agency for Planning, the Metropolitan Mayors Caucus, Metropolitan Planning Council and Chicago Metropolis 2020 hosted three half-day group discussions with experts in the housing industry -both in the private and public sector- to help sort some of these questions out.
The intent of these meetings was to gather as much practical information as possible from leading experts in the field, and to capture and disseminate this knowledge to NSP grantees (as well as future sub-recipients). Each group discussion focused on three distinct topics which included:
Property Acquisition Strategies
Tuesday, December 9th
• How to determine which properties are foreclosed and vacant?
• Determining who holds a valid (clean) title
• The foreclosure process and working with servicers
• Bulk acquisition vs. individual property acquisition
• How to investigate proper value (appraisal)
To listen to a webinar of this meeting go to: https://www2.gotomeeting.com/register/111171084
Strategies for Use of NSP Funds
Tuesday, December 16th
• What are potential financing mechanisms for which NSP funds could be used (ex: soft-second rehab loans, revolving loan funds, etc.)
• How to establish and administer land banks and land trusts
• If a property will be rental are there property management companies that could be partnered with to ensure a successful building in the long term?
• What are some strategies to leverage other resources to maximize the use of NSP dollars (ex: CDFI participation, banks, Employer-Assisted Housing, philanthropic organizations)?
• What is the best way to build economies of scale?
To listen to a webinar of this meeting, click here for Part 1 and Part 2 (Windows Media format).
Planning for Implementation and Partnering with Developers and Property Managers
January 28th –4th Annual Mayors and Developers Forum
New federal resources, with imminent deadlines and complex regulations, are available to support neighborhoods hardest hit by foreclosure – while families and communities throughout our region are struggling with the fall-out from our nation’s mortgage market meltdown. This year’s forum focused on how private sector rehabbers, builders, managers and redevelopers -- representing expertise in the rental, for-sale, single family and multi-family industries – can support municipal officials in addressing these trouble-spots and providing sustainable housing options. Break-out sessions for different market-types provided public and private sector leaders further opportunity to explore what they need from each other – and from county, regional, state and federal policymakers – in order to tackle the daunting challenges at hand. The forum was a hands-on, working session for both for communities who are -- and who are not -- eligible for the new federal Neighborhood Stabilization Program.
To read more about this event go to: http://www.metroplanning.org/ourwork/articleDetail.asp?pageID=3&objectID=4787&categoryID=2
Other Past Foreclosure Events:
On October 17th, 2008 CMAP and the Metropolitan Mayors Caucus partnered with the Metropolitan Planning Council and Chicago Metropolis 2020 to explore coordinated solutions to foreclosure problems in northeastern Illinois. A recent study from the Woodstock Institute estimates that, from the start of 2007 to mid-2008, nearly 33,000 housing units in our region entered Real Estate Owned (REO) status, where the property is returned to the lender because it doesn't sell at auction. This magnitude of vacant buildings poses tremendous challenges to stabilizing our communities and preventing further decline. The U.S. Department of Housing and Urban Development (HUD) recently allocated $3.92 billion in grants to help states and communities deal with foreclosures. (Visit http://www.hud.gov/nsp/ to read about the Neighborhood Stabilization Program, also described in a HUD press release.) Our state's portion of the allocation is $170 million. On Friday, October 17, local recipients of the Neighborhood Stabilization Program Funds met at CMAP to discuss the program's requirements and potential strategies for best utilizing these resources. The funds have been allocated specifically to acquire and redevelop foreclosed properties that might otherwise become abandoned and/or sources of blight. Given the limited timeframe for developing a plan and expending the funds, CMAP and its partners are seeking to facilitate information sharing among the grantees, which will be key to leveraging additional assistance and maximizing impact. For more information, contact Camp's Lee Deuben (ldeuben@cmap.illinois.gov or 312-386-8623).
On May 6, 2008, CMAP, Metropolitan Mayors Caucus, and Federal Reserve Bank of Chicago hosted a conference to discuss how foreclosures affect communities, and to learn about strategies that have been implemented at the local and regional level to lessen the negative impacts of vacant buildings. "Taking Action: Local Government Strategies to Mitigate the Impact of Foreclosures on Communities" brought together more than 100 representatives from municipalities, county governments, and the housing and development field to share their experiences, successes, and challenges when facing the foreclosure crisis. Foreclosures affect more than just those who do lose their homes. The ramifications can be felt in the surrounding neighborhood, the community as a whole, and even the larger metropolitan region. This conference was a good start to the regional discussion about how we can work together to get through this difficult period. To view a recap of the event and a list of foreclosure resources click here.
Other Past Events:
On February 6, 2007, CMAP hosted its first "Innovation and Integration" Summit to address the economic impact of linking jobs, housing, and transportation planning. The day-long session at the University of Illinois at Chicago was attended by over 250 stakeholders from various sectors, including local officials, developers, transportation and land use planners, community and economic development practitioners, and financial and philanthropic representatives. The summit featured presentations from local elected officials, developers, leading transportation policy analysts and national leaders from metropolitan planning organizations.
Below are descriptions of other CMAP activities to integrate housing into planning at the regional and local levels.
Return On Investment Tool. CMAP is currently developing a new tool for municipal planners known as the Return on Investment tool (ROI). The ROI tool is designed to assist municipalities in understanding the numbers behind the development process, and is based on the same tools that investors and developers use to evaluate a development’s feasibility. The ROI Model allows communities to determine whether their existing land use regulations allow development in which the returns outweigh the associated costs and risks for the developer, helping to identify which regulations need to be modified to achieve the type of development desired by the municipality. ROI can also aid municipal staff in their evaluation of proposed developments currently under review.
Corridor Development Initiative. CMAP has partnered with the Metropolitan Planning Council in the Corridor Development Initiative, an innovative participatory planning process that allows communities to assess and proactively plan for real world development scenarios. In this three-part planning process, community members are actively engaged in weighing all of the various options that go into development decision making. The initiative helps to educate participants on issues such as density, affordable housing, architectural design and the true cost of development along the way. Rather than simply reacting to a developer's proposal, communities learn to attract development that fits a local vision. In 2008, this process was piloted in two Chicago neighborhoods: North Lawndale and Hyde Park. To learn more about CDI, watch a YouTube video posted by MPC, describing the recent Lawndale Corridor Development Initiative activities. In 2009, CMAP intends to continue their partnership with MPC on this initiative, and to expand CDI to new communities.
Housing 1-2-3. CMAP supported the efforts of the Metropolitan Planning Council in the production of Housing 1-2-3. Housing 1-2-3 is a step-by-step guidebook designed to make the complex issues of planning, developing, preserving, and managing housing more understandable for municipalities and real estate professionals. The housing market expands and contracts, but the need for a diverse housing stock remains constant. Housing is one of the most basic needs in our society. A balanced housing strategy supports a wide range of quality options for people of every age, household composition, race, or income level. However, all too often, communities lack housing diversity. Beyond the question of equity, a lack of housing options has significant economic impacts – workers cannot live near their jobs, congestion increases, and retail dollars are spent elsewhere. This book will help your community plan for and invest in a diverse housing stock, whatever the market and wherever the community.
Full Circle Community Mapping and Planning Project. CMAP's Full Circle community planning and mapping project began in Spring 2004. Community-based organizations and municipalities participate in creating detailed maps of their neighborhoods, and in planning future development. Full Circle allows housing development practitioners to collect a multitude of data for decision support purposes. For example, a municipality might want to measure density around a transit-oriented development or a community development corporation might want to track vacant lots for potential infill development. Web technologies enable both the data-gathering and planning phases.
Chicago Area Housing & Community Development Website. The Greater Chicago Housing and Community Development Website is designed to guide and assist policy makers, housing/community development professionals, planners, researchers, developers and people seeking to buy or rent a home. The website makes available a wealth of data and information about the housing environment in Chicago and other communities throughout the region.
Jobs & Housing Balance Snapshot. As part of the development of the GO TO 2040 comprehensive planning process, CMAP is producing a series of Snapshot reports. The intent of these reports is to get a bird’s eye view on everything that is currently happening in the region. The report will explore policy questions such as, ‘What can be done to stimulate job creation near affordable housing centers?’ or ‘What can be done to stimulate affordable housing creation near job centers?’ The report is currently in progress.
Inclusionary Zoning Strategy Paper. As part of the regional comprehensive plan’s scenario development process, and under the direction of the housing team, CMAP explored various inclusionary zoning housing policies and developed a strategy paper. The purpose of this paper is to analyze the impact of possible inclusionary zoning (IZ) policies in the northeastern Illinois region. The paper proceeds as follows: first, it defines inclusionary zoning and reviews how it has been implemented in other cities and regions throughout the U.S.. Second, it explores the existing conditions of affordable housing in northeastern Illinois. Third, it examines how an inclusionary zoning policy in northeastern Illinois could influence affordable housing development locally and regionally, and evaluates the impacts of these changes for municipalities and the region as whole.
Regulatory Barriers Strategy Paper. As part of the GO TO 2040 comprehensive planning process, and under the direction of the housing team, CMAP explored various regulatory barriers to building affordable housing and developed a strategy paper. The report intends to better determine how development regulations shape the housing stock and in turn, affects the health and vitality of the region. The paper outlines major regulatory barriers that drive up housing cost, adding to the housing affordability problem.
Housing Preservation Strategy Paper. As part of the GO TO 2040 comprehensive planning process, CMAP explores several strategies and the many dimensions of housing preservation and developed a strategy paper. CMAP’s definition of housing preservation includes all actions that maximize the utility of the region’s pre-existing housing stock to make a variety of housing options available to families at all income levels. It therefore embraces values inherent in both historic preservation and affordable housing preservation. Research shows that preserving and maintaining existing and older housing stock has benefits to the region’s economy, community character, health and environment. The strategy report describes current trends and conditions in the housing market and explores housing preservation strategies that make sense within this context.