Comparing & Contrasting CLTs in Comparing & Contrasting CLTs in Urban & Suburban LocationsUrban & Suburban Locations

Highland Park, Illinois

West Humboldt Park, Chicago

Highland Park

West Humboldt Park

Characteristics for 2000Highland

Park

WestHumboldt

Park

West Humboldt Park CLT

Target Area

Total Population 31,365 52,217 21,309

% White 91.2% 15.4% 5%

% Black 1.8% 57.7% 85%

% Latino 8.9% 39.3 11%

% Asian 2.3% 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 2.71 3.7 3.6

Median Age 40.6 26.2 25.9

% College Bachelor Education 61.6% 5% 6%

% Families Below Poverty 2.3% 30% 32%

Owner-occupied 82.1% 38% 37%

Renter-occupied 17.9% 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 ChicagoFirst Community Land Trust of Chicago

Mission: Mission:

Create opportunities for local home ownership Create opportunities for local home ownership for households presently not income-qualified for households presently not income-qualified for the city’s existing affordable homes for the city’s existing affordable homes program.program.

Enable low-income households to enjoy Enable low-income households to enjoy positive participation in community – and positive participation in community – and economic-development policies impacting economic-development policies impacting areaarea..

What is the Need for this CLT?What is the Need for this CLT?

Affordable housingAffordable housing

To impact policies purportedly benefiting To impact policies purportedly benefiting low-income householdslow-income households

To enable low-income residents to To enable low-income residents to improve their participation in Chicago’s improve their participation in Chicago’s economy and social fabriceconomy and social fabric

CLT ProgressCLT Progress

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

ChicagoChicago

Development SitesDevelopment Sites

Already secured 10 Already secured 10 City-owned vacant City-owned vacant sites at no cost to the sites at no cost to the organizationorganization

CLT Homes and HomebuyersCLT Homes and Homebuyers

Single-family detached homesSingle-family detached homes

Households with annual incomes that are less than Households with annual incomes that are less than $40,000 $40,000

Preference given to those who already live in the Preference given to those who already live in the communitycommunity

Anticipate CLT selling prices below those of current Anticipate CLT selling prices below those of current affordable housing program selling pricesaffordable housing program selling prices

Membership OrganizationMembership Organization

The Board is a reflection of the membershipThe Board is a reflection of the membership

Voting members must live in the communityVoting members must live in the community

Three-tieredThree-tiered Lessees Lessees General-neighborhood representativesGeneral-neighborhood representatives Public-outside the neighborhood, Public-outside the neighborhood,

corporate/institutionalcorporate/institutional

City of Highland Park

Highland Park

Chicago

What is the Highland Park Illinois What is the Highland Park Illinois

Community Land Trust (HPICLT)?Community Land Trust (HPICLT)?

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

How Did HPICLT Get Started?How Did HPICLT Get Started?

HPICLT is an outgrowth of the process begun in the HPICLT is an outgrowth of the process begun in the late 1990s to update the City of Highland Park’s late 1990s to update the City of Highland Park’s Comprehensive Master Plan. Comprehensive Master Plan.

The City Council directed the 25 year old Housing The City Council directed the 25 year old Housing Commission to develop an affordable housing plan Commission to develop an affordable housing plan as an element of the Master Plan. as an element of the Master Plan.

Creation of a community land trust was a key Creation of a community land trust was a key recommendation of the affordable housing plan recommendation of the affordable housing plan adopted by the Council. adopted by the Council.

A Precursor to the CLT:A Precursor to the CLT:The Single Family Home Ownership The Single Family Home Ownership

Pilot ProgramPilot Program

• Created in 2002

• 5 units sold to low and moderate-income families

How is HPICLT Governed?How is HPICLT Governed?

A nine-member Board of Directors governs the A nine-member Board of Directors governs the HPICLT. HPICLT.

The Board is comprised of a cross-section of key The Board is comprised of a cross-section of key stakeholders in the community with an interest in stakeholders in the community with an interest in affordable housing. affordable housing.

Board CompositionBoard Composition

Three are “public representatives,” including at least Three are “public representatives,” including at least one City Council member and at least one member one City Council member and at least one member of the Highland Park Housing Commission.of the Highland Park Housing Commission.

Three are “lessee representatives,” including Three are “lessee representatives,” including individuals who live on land owned by HPICLT or individuals who live on land owned by HPICLT or who represent organizations that serve the interests who represent organizations that serve the interests of the target population.of the target population.

Three are “general representatives” from the Three are “general representatives” from the community at large.community at large.

How Does HPICLT How Does HPICLT Acquire Property?Acquire Property?

HPICLT purchases properties available on the HPICLT purchases properties available on the market. It also can receive donated properties.market. It also can receive donated properties.

In many cases, HPICLT is competing with builders In many cases, HPICLT is competing with builders for homes they wish to tear down.for homes they wish to tear down.

Properties can include a variety of housing, such as Properties can include a variety of housing, such as single-family homes, duplexes, town homes, single-family homes, duplexes, town homes, condominium units, small multi-unit buildings, as condominium units, small multi-unit buildings, as well as undeveloped land. well as undeveloped land.

Who Lives in HPICLT Homes?Who Lives in HPICLT Homes?

Majority of households served must have incomes Majority of households served must have incomes that do not exceed 80% AMI (approximately that do not exceed 80% AMI (approximately $58,000 for a family of 4).$58,000 for a family of 4).

Maximum income limits vary, depending on funding Maximum income limits vary, depending on funding source requirements, but do not exceed 115% AMI.source requirements, but do not exceed 115% AMI.

Priority is given to low and moderate-income Priority is given to low and moderate-income individuals and families who live or work in Highland individuals and families who live or work in Highland Park.Park.

Home BuyersHome Buyers

The combined assets of a household may not The combined assets of a household may not exceed 150% of AMI for the household size (for a exceed 150% of AMI for the household size (for a family of 4, assets can not exceed $113,100).family of 4, assets can not exceed $113,100).

Home buyers must qualify for a mortgage from a Home buyers must qualify for a mortgage from a participating lender.participating lender.

Home buyers must contribute a minimum of 1% of Home buyers must contribute a minimum of 1% of the net purchase price as earnest money towards the net purchase price as earnest money towards the purchase of the home. the purchase of the home.

Temple Avenue Town Homes

Successful First DevelopmentSuccessful First Development

Temple Avenue Town Homes:Temple Avenue Town Homes:

6 town homes constructed in 2004.6 town homes constructed in 2004.

Three-bedrooms, two and one-half baths, 2 car Three-bedrooms, two and one-half baths, 2 car attached garage.attached garage.

$35,000-$75,000 was the range of incomes of those $35,000-$75,000 was the range of incomes of those households purchasing town homes. households purchasing town homes.

Homes were sold at prices ranging from $110,000 to Homes were sold at prices ranging from $110,000 to $190,000. $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 StrengthsComparing & Contrasting Strengths

HPICLTHPICLT:: Executive Director has Executive Director has

15+ years experience in 15+ years experience in housinghousing

Dedicated source of Dedicated source of funding - Housing Trust funding - Housing Trust FundFund

City government was City government was instrumental in instrumental in establishing organizationestablishing organization

City staff very supportiveCity staff very supportive Pro bono SupportPro bono Support

First CLT of Chicago:First CLT of Chicago: Strong political support Strong political support Active community Active community

participation in local participation in local development development programmingprogramming

Outgrowth of an existing Outgrowth of an existing organizationorganization

City of Chicago land set City of Chicago land set asidesasides

Pro bono supportPro bono support

Comparing & Contrasting ChallengesComparing & Contrasting Challenges

HPICLT:HPICLT: Over-reliance on a Over-reliance on a

single source of income single source of income Single-staffedSingle-staffed High land and housing High land and housing

pricesprices Loss of political supportLoss of political support Disparity between effort Disparity between effort

and amount of product and amount of product and people served and people served

First CLT of ChicagoFirst CLT of Chicago:: FundraisingFundraising High construction costsHigh construction costs No prior experience in No prior experience in

housing developmenthousing development Strong competition city-Strong competition city-

wide with other non-wide with other non-profitsprofits

Cultivating wider political Cultivating wider political supportsupport