The Right Place

Kate Grossman thoroughly reported on the announcement today in the Sun-Times Metro section but you can bet The Right Place will do some digging into this.

People will be able to view documents by pressing the Preservation Compact button on the ULI Chicago homepage.

I have also uploaded a few of them here.
Press Release

Partners

Action Plan

Apartments we have known; Preservation Compact has tools for renters and landlords By Sally Duros

Could it be that -- for now -- it's OK to be a renter? If you're in
your late 20s to early 30s, and you're a renter, you might think
"Naw, never, not possible . . . really?" You might even feel
relieved, as a renter, that if homeownership is elusive to you --
for now -- that's OK. You have time. There's no need to jump into
buying a condo or house that is more than you can afford. Your
earnings will go up. The market is shifting now, and there is
plenty of opportunity ahead.

Homeownership is the sacred cow of U.S. culture. It's unclear to me
why this is so. What is clear is that if you live your life by the
media images that reflect back to us a shadow of who we are
supposed to be, well, then to live your life without a mortgage is
like living your life without love.

Most Chicagoans at some time in their lives -- and some large
percentage of us for all of our lives -- are renters. In Chicago,
56 percent of residents are renting at any one time.

When I was in my 20s, I measured my life in living rooms. We were
friends, renters all, and the apartments we visited became the
memories we collected day by day. To this day, even those of us who
are homeowners talk with affection about apartments we have known
-- the 4-bedroom beauty with the enormous sun parlor and
functioning dumb waiter, and the cute one-bedroom with a terrace
that overlooked the lake.

So today, if you're a renter -- for now -- be happy that you have a
landlord who takes on the job of running your building and renting
to you a nice place to call home.

Your landlord, in turn, might rejoice to know that someone is
looking out for him or her and trying to help them stay in business
as property taxes climb and energy bills soar.

This new friend of the renter and friend of the landlord is The
Preservation Compact. A partnership of the Urban Land Institute,
the Real Estate Center at DePaul University and the John D. and
Catherine T. MacArthur Foundation, the Compact a few weeks ago
announced a plan to reverse the loss of affordable rentals in the
Chicago region, specifically Cook County.

The Compact says public policy that adheres to its recommendations
will save at least 75,000 existing rentals in Cook County by the
year 2020. The DePaul Real Estate Center backed up the Compact's
plan for action with a new report, "The State of Rental Housing in
Cook County."

DePaul found four in 10 families in Cook County are renters, that
they earn less than owners, and they are younger than owners: 85
percent are younger than 26.

The Preservation Compact approaches rental preservation from many
angles. It creates mechanisms for collecting and organizing data,
for keeping information flowing among levels of government -- as
well as for providing assistance to tenants and communities.

But most notable are the tools it provides that will help
developers buy buildings, and keep them affordable by controlling
operating costs.

"Homeownership has always been part of the culture of this country,
and yet, every one of us has at one point or another rented housing
at one time," said Mary Vasys, a member of the Urban Land Institute
Chicago District Council who is working with the Preservation
Compact.

The Urban Land Institute's primary membership is developers. And
the Compact's new tools will be available to any developer or
building owner who keeps rental costs down.

"From the very beginning," Vasys said, "We have wanted to include
non-profit and for-profit and subsidized and non-subsidized
buildings. Affordable housing is the goal."

The Compact's tools are a $100 million fund that will lend money to
developers while they line up financing for acquiring rental
buildings. MacArthur has kicked in about a third of that.

Another tool for rental building owners is a proposed expansion of
the Illinois Class 9 property-tax incentive.

"Let's take an 18-unit building property owner," Vasys said. "Under
the Class 9 program as it exists today, the owner could qualify
only if they have done substantial rehab. We are working with Cook
County Assessor James Houlihan to expand the Class 9 program so
that all rental buildings that are in good condition will qualify
for this reduction."

Class 9 reduces the assessed value on a building for a period of 10
years. When it expires, building owners can apply to extend it for
another 10. Another incentive is an energy audit, and grants and
low-interest loans to make improvements related to energy.

"That same owner of an 18-unit building: maybe his energy bills -
gas, electric, water -- seem really high to him. This building
owner will be able to go to the Center for Neighborhood Technology
for an energy audit of the building," Vasys said. He can then apply
for a grant or low-interest loan to make the necessary
improvements.

You can access Sun-Times news coverage and see relevant documents
on the Preservation Compact at my blog, The Right Place, at
www.suntimes.com.

e-mail: sduros@ suntimes.com

Chicago






Posted by Sally Duros on June 16, 2007 09:43 AM | Permalink