Highland Park's
Affordable Housing Trust Fund

1. What is the Affordable Housing Trust Fund (HTF)?
The HTF is an affordable housing funding program created and operated by the City of Highland Park. It was established by ordinance of the City Council in May 2002 to provide financial support for affordable housing activities that address the needs of low- and moderate-income individuals and families who live or work in Highland Park.

2. Why did the City establish the HTF?
Creating the HTF was one of the key recommendations in the City’s Affordable Housing Plan, which was adopted as an element of the City’s updated comprehensive Master Plan in January 2001. The HTF and other recommendations of the Affordable Housing Plan are state-of-the-art strategies designed to complement each other and facilitate the City’s ability to implement its housing goals and policy of promoting the economic diversity of its population by maintaining and promoting a variety of housing types and prices in neighborhoods throughout the community.

The Affordable Housing Plan was developed in response to resident concerns that housing market trends – including rising land and housing costs and a loss of affordable units over the years – are threatening Highland Park’s diversity, changing neighborhood character, and severely limiting housing options for a broad range of individuals and families currently living and working in the community. The limited availability of modestly priced housing impacts the ability of local employers – including the City, school districts, other governmental agencies, health care and other service providers, and downtown businesses – to attract and retain employees. In addition, the large number of workers commuting in and out of Highland Park results in increased traffic congestion.

3. How will the HTF benefit Highland Park?
As a source of funding for affordable housing activities in the community, the HTF will provide critical “gap” financing essential to starting or completing affordable housing development. It will also be an important catalyst to leverage funding from other public and private sources, thereby maximizing the City’s investment and making it possible to provide housing at affordable price points in Highland Park. By focusing on activities that ensure long-term affordability, the HTF will maintain the value of its investment for the benefit of the community over time.

4. How is the HTF funded?
The HTF is authorized to accept funds, property, and other resources from public and private sources. The Housing Commission is contributing $1 million in seed money for the HTF from a one-time reserve created through the refinancing of a building owned by the Commission. On-going funding is provided by the City with revenue derived from demolition permit fees and from a newly adopted local tax on residential demolitions - $10,000 for single-family homes or, for multi-family buildings, either $10,000 or $3,000 per unit, whichever is greater. The City’s recently adopted inclusionary zoning ordinance provides that developer payments in lieu of providing actual units will also be designated for the HTF.

5. How is the HTF administered?
The Housing Commission is responsible for the administration and operation of the HTF and has sole responsibility for approving the distribution of HTF resources. The Housing Commission is assisted by a 7-member Advisory Committee, appointed by the Mayor, with the advice and consent of the City Council. The HTF Advisory Committee serves as a recommending body to the Commission on all aspects of HTF program and operations, including reviewing applications for funding and making recommendations regarding funding awards. It is chaired by a member of the Housing Commission; the City Council liaison to the Housing Commission is a standing member. The City’s Director of Fiscal and Administrative Services is responsible for the day-to-day fiscal management of the HTF.

6. What types of activities will the HTF fund?
The HTF will fund primarily affordable housing development activities. Development activities can include new construction of sale or rental housing, rehabilitation of existing housing for sale or rent, new construction or rehabilitation of mixed-use buildings, acquisition of property, and adaptive reuse. Housing may be either single-family or multi-family. In addition, the HTF provides operating support to the Highland Park Illinois Community Land Trust, an independent, not-for-profit organization, created to own land for the benefit of the community and to provide and preserve permanently affordable housing on such land. Establishing a community land trust was another key recommendation of the City’s Affordable Housing Plan.

7. Who will live in the affordable units developed with HTF funding?
Units developed with HTF funds will assist households whose income does not exceed 100% of the area median income (AMI), as established annually by the Department of Housing and Urban Development and adjusted for household size. Within these parameters, affordability requirements have been established to ensure that HTF units will benefit a range of incomes, with emphasis on those whose incomes do not exceed 80% AMI. Priority will be given to individuals and families who live or work in Highland Park.

The following table below shows Chicago AMI levels by household size, effective as of February 20, 2003:

8. How long must HTF-assisted units be kept as affordable units?
Units in for-sale developments assisted with HTF funds must be kept affordable in perpetuity or as long as is legally permissible; HTF-assisted units in rental developments must be kept affordable for at least 25 years. The Housing Commission will ensure on-going affordability through a grant agreement and deed restrictions, covenants or other related instruments that run with the property.

9. How will HTF funds be made available for affordable housing development activities?
Funds will be made available pursuant to a Notice of Fund Availability (NOFA) to be issued by the Highland Park Housing Commission. The NOFA will set forth the requirements for applying for funds and the criteria that will govern funding awards.

10. Who is eligible to apply for HTF funding under the NOFA?
Eligible applicants include housing developers (for-profit and not-for-profit), owners or operators of housing developments, and units of government.

FOR MORE INFORMATION, CONTACT THE DEPARTMENT OF COMMUNITY DEVELOPMENT, 847-432-0867.

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