Under Mayor Emanuel, CHA production of replacement housing has slowed to a near halt — to the point that it’s virtually impossible to see the agency completing its new Plan Forward goals on time, housing advocates say.
And that’s with a five-year extension to CHA’s original ten-year Plan For Transformation.
The numbers are striking: in each of the last four years under Mayor Daley, CHA produced between 760 and 880 replacement units.
In 2011, under Emanuel, CHA produced 424 units; the next year, 112 units; and in 2013, just 88.
And in its proposed plan for 2014, which was the subject of a public hearing Wednesday, CHA is proposing a grand total of 40 new public housing units.
In fact, that number includes 12 units at the new Dorchester Artists Housing located in a vacant scattered site that was rehabbed in 2005 — and already counted once toward the PFT’s goal of 25,000 replacement units, said Leah Levinger of Chicago Housing Initiative.
With nearly $100 million in TIF funds being spent on the first phase of a massive development on the south lakefront, a community summit on Saturday will discuss strategies to win a community benefits agreement for the project.
The Coalition for a Lakeside CBA meets Saturday, September 7, from 9 a.m. to 2 p.m. at Our Lady of Guadalupe Church, 3200 E. 91st.
Jennifer Epps-Addison of the Partnership for Working Families will discuss how community benefits agreements (CBAs) across the country have won opportunities for local workers and communities, and Tom Tresser of CivicLab will present an analysis of all TIFs in three local wards.
The Coalition will also release results of a new survey of Southeast Side residents.
Site developer McCaffrey Interests has been granted $96 million in TIF support from the city for the first phase of a vast new redevelopment of the former site of US Steel’s South Works (USX) plant, dubbed Chicago Lakeside. Ultimately McCaffrey plans over 13,000 units of housing, 17.5 million square feet of retail, 125 acres of parks and a 1,500-slip marina.
The TIF subsidy will cover one-fourth of development costs for the first phase of the project, which will include 1 million square feet of retail and restaurants and 848 units of housing. The first phase is planned for the northwest corner of the 530-acre site, which runs south from 79th Street along the lakefront to the Calumet River.
Concerns about displacement
A major concern is that development could cause displacement in the adjoining area, as it has in other communities, with property tax increases as home values rise forcing longtime residents to leave, said Amelia NietoGomez of the Alliance of the South East, an organizer of the coalition.
With a federal historic preservation review of plans for Altgeld Gardens under way, CHA has dramatically scaled back the number of units it is considering demolishing there, according to a residents group.
People for Community Recovery discovered last year that the CHA development had been found to be eligible for listing on the National Register of Historic Places in 1993, said board president Christian Strachan.
After the group contacted federal agencies for more information — and with demands for a community-led planning process — HUD initiated a Section 106 review aimed at minimizing the impact of federally-funded redevelopment on historic properties, he said.
Meanwhile a consultant hired by CHA in May to coordinate planning has discussed two possible scenarios, one involving demolition of about 120 units and one with even less demolition, according to Cheryl Johnson, executive director of PCR.
Tenants of a low-rent high-rise in Uptown and community groups concerned about the loss of affordable housing fear that a building court hearing Tuesday could result in an emergency vacate order.
Though new owners of Lawrence House, 1070 W. Lawrence, have claimed success in relocating tenants of other North Side SROs they’ve redeveloped, a vacate order would let the owners off the hook and leave it up to the city to find emergency shelter for nearly 200 residents, said Mary Lynch-Dungy of ONE Northside.
“We’re basically talking about making 200 people homeless,” she said.
The city is not pushing for an emergency vacate order, said law department spokesman Roderick Drew.
But the owners could propose an order, or the judge could decide to issue one independently.
Lynch-Dungy noted that though Lawrence House has been in building court since 2010 — with over 100 code violations — “no judge has considered the problems serious enough to issue a vacate order.” But such an order at this time “would be convenient for the new owners,” she said.
The development team hired by CHA for Lathrop Homes issued a “final draft” of their plan last week, but key details are missing and major questions remain in contention.
That includes the height of a high-rise building Lathrop Community Partners wants to build at the southern end of Lathrop — a flashpoint for neighborhood opposition — as well as issues of preservation, replacement of lost public housing, and public financing for private developers.
Built in 1938 along the Chicago River north and south of Diversy, Lathrop features low-rise brick buildings and landscapes designed by leading architects of the day. It was cited by Preservation Chicago as “the best public housing Chicago has ever built” and named to the National Register of Historic Places last year.
Preservation plan from Landmarks Illinois
CHA stopped leasing to new residents in 2000, at first promising a full renovation as public housing, then meandering through a series of planning efforts. At one point plans to demolish and replace the entire development were announced.
LCP, a consortium of for-profit and nonprofit developers led by Related Midwest, a developer of luxury high-rises, was selected by CHA to handle Lathrop’s redevelopment in 2010. LCP issued three possible scenarios for community discussion last year.
At a community meeting on the “final draft” plan last week, lead designer Doug Farr said LCP had reduced overall unit count to less than 1,200 in response to concerns about excessive density. (One way they did this, it turns out, was removing the 92-unit Lathrop senior building from the count.) Earlier plans projected 1,300 to 1,600 units.
That goes some of the way toward meeting objections of neighborhood groups and local aldermen — though they had argued that 1300 units on the 37-acre site meant a density level two-and-a-half times the surrounding area. Lathrop currently has 925 units, with less than a fifth of them occupied.
LCP also reduced proposed retail development to 20,000 square feet, down from a high of 70,000 — with big box stores surrounded by surface parking — in earlier plans.
But although aldermen and neighborhood groups rejected the concept of a high-rise on the site, it’s still in the plan. LCP is just not saying how high it will be. They’re not even calling it a “high-rise.”
While the proportion of Chicago residents challenged by housing costs has surged in the past decade — half of all renters and homeowners are now officially “housing cost-burdened” — the city has apparently dropped the word “affordable” from its next five-year housing plan.
This odd and unexplained omission was widely commented on at a recent gathering of South Side housing activists, called by the Chicago Rehab Network to foster discussion and generate interest in the city plan.
“I am concerned about them taking the word ‘affordable’ out as if it were something to be ashamed of,” said Mattie Butler of Woodlawn East Community and Neighbors.
“Affordability is not just for people with subsidies,” she added — particularly since the city continues to measure affordability by the regional median income of $75,000 (as of 2010); the median income in the city is under $47,000.
(A Newstip on CHA demolitions last year pointed out that the large bulk of the city’s “affordable housing” production is targeted well above the lower reaches of the income range –indeed, much of it above the city’s median income.)
“The city has dropped the word ‘affordable,’ but we have to make sure that affordability continues to be the focus of the plan,” said Janet Smith of UIC’s Voorhees Center.
She presented an overview of housing issues in Chicago as “a tale of two cities,” with thousands of high-end rental units under construction around the Loop while neighborhoods continue to be ravaged by the foreclosure crisis — and housing becomes less and less affordable.
Between 2000 and 2010, the proportion of renters paying over a third of their income for housing — the federal standard for “cost-burdened” — rose by 32.5 percent, and the proportion of homeowners who are cost-burdened rose by an astonishing 78 percent, she said. (See CRN’s new City of Chicago Housing Fact Sheet.)
UPDATED – While Cabrini Row House residents prepare to challenge CHA plans for mixed-income development, CHA resident leaders and housing advocates are questioning Mayor Emanuel’s update to the agency’s Plan For Transformation.
The Cabrini-Green Local Advisory and supporters will hold a press conference Thursday morning (May 16 at 9:30 a.m., 530 W. Locust) to announce “a new initiative to protect the Carini Row Houses,” according to a release from the Legal Assistance Foundation.
Row House residents have called on CHA to fulfill the promise in the original PFT to rehabilitate the development as 100 percent public housing; that plan was put on hold in 2011.
Meanwhile, resident leaders and community organizations called on the CHA board to reject the mayor’s plan and return to the drawing board — and to heed input from the public, including an emphasis on preservation and rehab of existing units rather than subsidizing private development as the most cost-effective way to meet CHA’s obligations.
“This is a good day for homeowners and families across the state of Illinois and a big step in the right direction for our economy,” said Rev. Marilyn Pagán-Banks of IIRON, a Chicago-area organizing network.
“We now encourage Congressman Watt to implement common-sense policies like principal reduction to bring relief to tens of millions of homeowners and to jumpstart the economic progress our country needs.”
Community groups and housing advocates have called for DeMarco’s replacement for over a year, faulting him for blocking principal reductions on mortgages owned or guaranteed by Fannie Mae and Freddie Mac, which the FHFA oversees.
They argue that reducing mortgage principal to reflect the fair market value of homes that since the housing crash are worth less than what homeowners owe would prevent foreclosures, stabilize the housing market, and boost the economy.
DeMarco has been “the biggest roadblock to our country’s economic recovery,” said Tracy Van Slyke of the New Bottom Line coalition, which has spearheaded a “Dump DeMarco” campaign.
At last week’s action, as 500 people from National Peoples Action gathered at DeMarco’s Washington D.C. home, Reverend Cliff Parks of Illinois Peoples Action noted that Fannie and Freddie control over half the mortgages in the nation, including those of nearly 14 million underwater homeowners. (See video below.)
Elizabeth Scrafford, a DePaul student and leader with IIRON Student Network, read a resignation letter drafted for DeMarco, holding him responsible for 1,800 families facing unnecessary new foreclosures every day that he has delayed approval of principal reduction.
Watt is known as an early advocate for action against predatory lending, Buitrago said.
Noting that he faces an uphill battle to win confirmation from the Senate, Buitrago said Obama should consider installing Watt with a recess appointment. The administration’s previous nominee for the post withdrew in 2011 after Senate Republicans refused to act on his nomination.
Republicans say they want a plan from the administration for eliminating Fannie and Freddie before they consider an FHFA appointment. But IIRON and other groups are calling on Watt to “support the vital role [the agencies] play in ensuring housing opportunities.”
Check out “NPA knocks on Ed DeMarco’s door,” from April 22:
By Stephen Franklin Community Media Workshop A 3-year-old child died on a plane from Chicago to Poland. This, Magdalena Pantelis instantly knew, was a story her readers would care about. But she needed more detail to write about it for the Polish Daily News, the nation’s oldest daily newspaper in Polish, founded Jan. […]
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