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From YouTube: Housing Finance Workshop Panel Presentation
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A
Good
evening,
everyone
thank
you
all
for
coming.
We're
gonna
go
ahead
and
get
started.
I'm
Savannah
Clement
on
the
housing
policy
and
planning
analyst
here
with
the
city
and
I'm
here
to
offer
some
brief
introductions
of
our
panelists
this
evening
and
I
just
want
to
extend
my
gratitude
to
all
of
you
for
being
here
and
doing
this.
You
guys
are
amazing.
Thank
you.
So
first
we
have
al
wheel.
A
wheel
comes
to
us
from
Winn
Trust
Bank.
A
He
is
the
vice
senior
vice
president
of
commercial
real
estate
for
Winn
trust
he's
been
in
the
housing
finance
game
for
about
30
years
30
plus
years,
and
then
we
have
Colette
English
Dixon.
She
is
with
she's
the
executive
director
of
the
Marshall
Bennett
Institute
for
real
estate
at
Roosevelt
University.
She
also
has
about
30
years
of
experience
in
the
real
estate
world,
and
so
she
is
another
expert
and
then
we
have
mark
Muller.
He
works
for
Fulton
developers.
A
Up
in
Highland
Park
mark
has
a
ton
of
experience
working
with
the
inclusionary
housing
ordinance
there
and
doing
both
market
rate
and
with
affordable
housing
in
it.
And
then
we
have
Tim
quant
Tim
Clark
comes
from
the
Federal
Home
Loan
Bank.
He
is
the
vice
president
and
manager
of
community
investment
programs,
and
he
has
also
a
wealth
of
experience
from
community
organizations.
He's
worked
for
the
city
of
tempe
and
has
done
a
lot
of
great,
affordable
housing
work.
B
Thanks
Savannah
good
afternoon,
everybody
good
evening,
sorry
is
late.
I
keep
reading
what
time
it
is
good
evening
and
so
I'm
the
moderator
of
this
I'm,
not
really
the
key
expert,
but
I
want
to
get
started
by
just
setting
a
little
bit
of
the
stage
about.
You
know
what
is
really
affordable
housing
as
we're
gonna
move
forward
in
the
discussion
without
mark
and
Tim.
So
affordable
housing
by
its
very
nature
is
not
what
most
people
assume
it
is
it's
not
public
housing.
It's
not
housing,
that's
necessarily
financed
by
low
income
tax
credits.
B
The
concept
of
affordable
housing
is
saying
that
a
household
pays
less
than
or
equal
to
not
more
than
30%
of
their
income
to
cover
their
housing
costs
and
in
many
communities.
There's
a
lot
of
discussion
about
how
burdened
people
are
with
the
increased
costs
of
housing
to
what
they're
making
income
wise
but
for
affordable.
This
is
the
threshold
and
for
many
people
who
are
used
to
renting
in
you
know
any
number
of
properties
in
the
city
and
during
their
lives.
That
was
always
the
big
test.
B
When
you
went
in
to
apply
to
rent
an
apartment
with
whether
or
not
your
income
really
allowed
it,
so
that
your
rent
was
no
more
than
thirty
percent,
so
that's
our
threshold
in
Cook,
County
of
all
households.
Overall,
the
median
income
is
about
fifty-seven
thousand
dollars
a
year,
which
means
that
you
can
pay
about
$1,400
a
month,
an
owner-occupied
properties
of
which
you
know
fifty
seven
percent
of
the
households
in
Cook
County
are
owner-occupiers.
B
The
meeting
comes
about
eighty
thousand,
which
means
that
they
can
pay
about
two
thousand
a
month
and
then
for
renters
thirty
six
thousand
dollars
a
year
is
the
median
income
in
Cook
County,
which
means
they
can
pay
$900
a
month.
That's
a
really
important
number
to
keep
in
mind
in
Evanston,
which
is
a
bit
more
financially
advanced
than
the
city
of
Chicago
County
in
general.
Ever
since
a
much
more
high
income
community,
the
median
income
at
seventy,
one
thousand
gets
you
17,
almost
eighteen
hundred
dollars
a
month.
B
Overall,
what
people
can
afford
to
pay
and
the
renter's
space
there's
only
a
little
bit
more
than
a
thousand
dollars
a
month
in
order
for
a
rental
unit
to
be
considered,
affordable,
so
is
Chicago.
Affordable
is
Cook,
County,
affordable,
I
would
say,
maybe
not
look
at
what
is
affordable
for
a
renter
and
the
affordable
meeting
income
at
nine
hundred
dollars,
but
the
cost
is
a
thousand
overall.
So
generally
in
Cook
County
for
renters
it
is
not
an
affordable
market.
B
The
rental
housing
in
Cook
County.
As
of
2015.
There
were
almost
you
know,
more
than
three-quarters
of
a
million
of
a
million
people
who
were
considered
renter
households
or
those
actually
renter
households
in
total,
that's
actually
more
than
eight
hundred
thousand
people.
What
median
income
of
$36,000
they
can
afford
$900
a
month,
their
rents,
a
thousand
so
more
than
50%
at
ported,
50%
of
or
less
than
50%
of
ami
most
households
in
the
city
of
Chicago
and
Cook
County
are
red
burdened
at
85
to
90
percent.
That's
really
crazy,
a
fact.
B
Most
people
don't
think
about
this.
90%
of
rental
housing
in
the
u.s.
is
privately
owned
and
privately
financed.
A
lot
of
people
think
that
there's
a
lot
of
rental
housing-
that's
publicly
financed.
That
is
not
true.
Most
of
it
is
privately
financed
and
75%
of
low-cost
rental
housing
is
privately
owned
and
privately
financed,
which
I
think
it's
really
important
when
you
think
about
the
sort
of
returns
and
the
kind
of
capital
that's
involved
in
providing
rental
housing
in
this
country.
Most
rural
housing
units
are
less
than
50
units
in
a
building.
B
So
here's
the
fundamental
challenge
if
rent
on
a
market
rate
basis
is
sixteen
hundred
dollars
a
month
and
an
affordable
unit.
It's
eight!
Fifty!
If
you
take
out
the
expenses,
a
market
rate
unit
can
deliver
about
a
thousand
dollars
and
net
income
to
go
for
other
things.
He
covers
debt
service,
it
covers
maintenance,
it
covers
all
those
other
capital
costs
and
an
affordable
property
with
the
expenses
are
pretty
much
the
same.
B
There's
not
a
lot
of
money
available
to
maintain
those
units,
and
what
you
often
find
is
that
affordable
units
tend
to
be
disadvantaged
in
their
maintenance
and
in
their
location,
because
there
is
not
a
lot
of
incremental
money
available
to
operate
them,
so
just
wanted
to
set
that
general
stage,
just
a
mindset
about
affordable
housing
and
how
many
people
can
actually
afford
it
and
how
many
people
need
it.
I'm
gonna
pass
this
over
to
Al
for
a
second.
C
Thank
you
and
I
apologize
for
the
small
print,
but
I
hope
everybody
has
their
package
and
can
can
read
it
a
little
bit
more
legibly.
But
what
I
really
wanted
to
show
here
tonight
was
an
example
and
really
more
for
discussion
purposes
than
anything
is
a
developer
looking
at
a
affordable
housing
component
within
a
hundred
and
forty
unit
apartment
building
development?
Okay.
So
if
you
look
at
the
two
categories,
one
the
headline
is
with
affordable
units
and
without
and
typically
on,
deals
like
this.
C
The
developer
has
an
option
to
opt
out,
which
means
they
can
pay
in
the
$100,000
per
unit
as
part
of
their
construction
costs
or
if
they
decide
to
include
the
affordable
units
within
the
development.
Then
the
market
rents
there's
a
discrepancy
in
the
market
rents
between
in
the
chunk
price
between
paying
in
the
amillion
for
in
affordable
and
then
putting
the
unit's
actually
online
for
rentals.
So
if
we
continue
down
the
the
left
side,
the
left
column
there,
where
we
have
the
construction
cost,
so
we
have
an
acquisition,
cost
purchase
price
of
seven
million
dollars.
C
Closing
costs
didi
is
due
dilligence.
That's.
You
know
that
some
may
be
permitting,
which
is
included
in
a
soft
cost,
but
just
some
backgrounds
the
the
developer
will
have
to
do
some
discussions
with
the
city's
municipalities
and
in
your
heart,
construction
contract
is
twenty
million,
seven
hundred
thousand
your
hard
cost
contingency
and
basically,
what
that
represents.
It's
about
a
five
percent
of
your
heart
cost
budget
and
basically
that
covers
any
any
overruns
in
the
construction.
C
Whether
it
be
you
know,
material,
labor
costs
that
are
unforeseen
additional
costs
that
you
may
incur
that
you
weren't
prepared
to
when
you
budgeted
this
out,
ie
a
lot
of
it
as
infrastructure.
When
you
start
digging
below
grade,
you
see
some
some,
some
soil
and
stuff-
that's
just
not
conducive
to
building,
so
they
have
to
put
some
shoring
in
some
municipalities
required
attention:
water,
water,
detention,
Holdings.
That
adds
a
lot
of
engineering
costs
to
some
of
these
developments,
because
the
flow
rate
out
of
the
detention
pond
has
to
be
its
it.
C
It's
mandated
by
the
local
municipality,
but
there's
a
lot
of
engineering
costs
that
go
into
that.
And
then
the
soft
costs
are
your
legal
fees
and
permitting-
and
you
know,
architecture
and
and
maybe
they
had
to
do
a
study.
So
that's
so
if
we
look
at
a
total
uses,
total
budget
of
thirty
two
million
three
hundred
thousand
dollars,
okay
at
a
price
per
square
foot
at
three
dollars
and
forty
cents
and
I'm
using
a
kind
of
a
cap
rate
which
is
kind
of
consistent
with
the
market
and
the
multifamily
sector.
C
Right
now,
we're
seeing
in
very
vibrant
communities,
ie
Wrigleyville
Lakeview
in
the
city
of
Chicago,
where
cap
rates
are
sub
6%,
they're,
five
percent
five
and
a
half
percent
I
use
six
percent,
it's
kind
of
a
nice
round
number
and
it's
kind
of
a
norm.
So
if
you
look
at
a
net
operating
income
of
the
net
rentable
square
feet.
Okay,
so
you
have
net
rentable
square
feet,
which
is
where
the
where
the
renters
live.
The
gross
rentable
square
feet
includes
common
areas
which
does
not
produce
any
income
right.
C
So
it's
your
staircase
is
your
hallways
and
things
like
that.
So,
at
a
with
affordable
units,
okay
and
the
at
a
price
per
square
foot
of
two
thousand
forty
cents
at
a
six
percent
cap
rate,
you
have
a
valuation
again
once
it's
once
it's
built
out
based
upon
that
cash
flow
of
a
thirty
seven
million
dollar
five
hundred
seventy
thousand
dollar
valuation
of
that
completed
asset
when
you
flip
it
over
to
the
right-hand
side
of
the
column,
all
of
the
top
numbers
remain
the
same,
so
your
land
purchase
price
remains
the
same.
C
Your
construction
costs
remain
the
same.
The
difference
here
is
that
the
million
four
okay,
the
million
four,
is
the
buy-in
that
developer
has
to
pay
in
order
to
not
have
affordable
units
included
in
the
project.
So
when
you
add
that
million
four
into
it,
your
total
cost
then
goes
up
by
a
million
for
up
to
thirty
three
million.
C
Seven
hundred
thousand
your
price
per
square
foot,
then,
is
increased
because
you're
taking
the
affordable
units
out,
okay,
so
you're,
looking
at
it
and
I
used
again
a
forty
cents
per
square
foot
differential,
some
of
them
are
greater
than
that.
Some
of
them
are
less
than
that,
depending
on
the
scope
of
the
project,
decides
to
the
project,
but
assuming
a
forty
cents
per
square
foot
differential
between,
and
this
is
a
chunk
price.
So
this
is
the
average
price
of
all
of
the
units
at
three
dollars
and
eighty
cents.
C
Your
net
income
is
two
million
five
hundred
nineteen
thousand
four
hundred
and
implying
that
same
six
percent
cap
rate,
because
this
the
cap
rates
not
going
to
change
because
the
cap
rate
is
driven
by
the
local
communities
that
the
locals.
You
know
its
Evanston,
it
could
be
Chicago,
it
could
be
whatever,
but
cap
rates
are
what
other
properties
solve
for
within
the
within
the
neighborhood.
So
if
you
apply
that
same
cap
rate,
you've
got
a
valuation
of
just
under
forty
two
million
dollars.
C
Okay,
so
you
look
at
the
difference,
it's
four
and
a
half
million
dollars
and
that's
what
the
developer
has
to
look
at
when
they
look
at
the
total
scope
of
the
project.
One,
their
cost
incrementally
go
up
right
with
with
the
affordable
units,
and
the
valuation
is
reduced
without
the
affordable
units,
and
you
include
them
in
your
rentable
square
footage
the
value
of
that
property
increases
by
four
and
a
half
million
dollars.
C
That's
we,
where
we
as
a
lender,
look
at
it,
because
lenders
borrow
on
a
loan
to
cost
basis.
So
we
look
at
the
total
project
costs
and
you
know
in
heyday,
banks
were
lending
at
ninety
percent
loan.
The
cost
right
those
days
are
long
gone.
So
typically,
what
we're
seeing
a
starting
point
is
around
75
percent
loan,
the
cost,
but
that
debt
has
to
cash
flow
at
a
whatever
the
banks.
You
know
normal
credit
policy
is
so
the
leverage
may
come
down,
so
it
may
not
be
seventy
five
percent.
C
So
if
you
look
at
below
the
example
of
a
bank
debt
analysis
I'm
using
a
70%
loan
to
cost
there,
so
that's
your
bank
loan
at
70
that
70%
is
22
million
with
affordable
units
23
men,
a
half
million
dollars
without
your
total
project
costs
are
the
same.
So
if
you
look
at
year,
one
that
operating
income,
there's
a
two
hundred
and
sixty
five
thousand
dollar
difference
between
with
affordable
units
and
without
again
a
sizable
number.
And
if
you
look
at
the
return
of
investment,
which
is
an
arbitrary
number.
C
But
that's
what
developers
look
at
right?
They
need
to
look
at
a
return
of
their
investment
because
one
it's
their
equity
or
investors
equity,
two
they're,
taking
on
all
the
risk
because
they
have
to
get
the
project
built.
Okay,
so
there
are
their
investors
that
are
putting
the
capital
up
to
buy
into
the
project,
are
expecting
a
rate
of
return
on
their
money
and
that
rate
of
return
can
be
anywhere
from
6%.
C
Preferred
rates
of
return
are
about
8%,
so
when
you
factor
those
costs
into
what
they
have
to
pay
the
capital
provider
and
what
they
have
to
pay
the
bank,
they
try
to
look
for
average
reach
return
of
about
10
to
12
percent
on
a
construction
project
and
if
they
get
that
and
they
sell
at
a
6%
cap,
that's
where
they
make
their
money
so
I'm
just
again.
I
just
wanted
to
kind
of
give
you
an
idea
of
how
a
bank
looks
at
a
construction
project
when
there
is
an
affordable
component,
because
it
really
is
theirs.
C
It's
two
completely
different
scenarios.
You
know
to
whether
the
the
developer
decides
to
buy
in
and
and
pay
it
or
allow
the
affordable
units
on
site
and
there's
a
material
there's
a
material
difference-
and
this
is
only
a
hundred
and
forty
units,
obviously
as
deal
sizes,
progress
and
get
bigger
and
costs
of
land
gets
bigger
and
cost
of
labour
gets
bigger
and
cost
of
material
gets
larger.
C
F
Good
evening,
everyone
I'm
a
developer
that
has
focus
for
the
last
15
years
in
creating
single-family
and
multi-family
buildings,
mostly
within
the
North
Shore.
On
several
projects.
We
have
incorporated
inclusionary
housing
units
in
which
a
certain
percentage
of
the
units
within
a
market
rate
development
are
affordable.
F
What
we
have
seen
is
in
in
most
markets
that
have
high
costs
there
there's
very
little
affordable
housing,
but
there
is
a
great
need
for
Freight.
One
of
the
great
advantages
that
we
see
when
we
are
providing
affordable
housing
mixed
up
with
market
with
units
in
our
projects
is
that
it
doesn't
require
public
funding.
So
it's
a
benefit
for
the
community
without
the
need
for
public
funding
in
the
projects
that
we
are
doing.
F
When
you
have
a
project
that
has
more
than
five
units,
there
is
an
option
to
pay
a
fee
in
lieu
of
building
affordable
units,
but
that
option
is
only
available
when
you
have
projects
that
have
less
than
20
years.
So
if
you're
building
more
than
20
units,
you
have
to
include
affordable
units
in
the
project
together
with
market
rate
units.
F
On
top
of
what
you
are
allowed
to
do
within
the
zoning
district,
you
get
a
bonus
of
additional
units
and
on
some
cases
you
even
get
a
bonus
unit.
If
you
go
through
a
Planned,
Unit
development,
you
could
get
additional
units
as
a
bonus
units
within
the
Planned
Unit
development,
so
trying
to
encourage
better,
better
developments.
F
So,
potentially,
if
you're
able
to
build
more
units
in
your
project,
you
can
to
certain
extent
offset
the
additional
costs
associated
with
affordable
units
in
order
to
build
more
units.
You
need
a
higher
density
and,
in
some
cases,
additional
height,
which
is
an
area
of
concern
for
most
communities
and
most
of
the
neighbors
that
don't
want
more
height.
They
don't
want
more
density.
F
F
We
have
tried
to
find
ways
to
work
with
the
community
in
the
neighbors
who
try
to
minimize
the
impact
of
the
additional
density
and
hide
in
some
of
these
projects.
On
Laurel
apartments,
for
instance,
which
is
the
one
we
have
on
the
slide,
the
zoning
allowed
for
three
storeys
and
we
proposed
a
four-story
building.
F
F
F
We
had
to
put
it
somewhere
and
we
added
a
fourth
floor
which
cannot
be
seen
because
it's
set
back
from
the
street
and
from
the
sides.
So
there's
additional
units
which
cannot
be
seen,
and
that
was
one
way
to
to
certain
extent,
to
satisfy
some
of
the
concerns
from
the
neighbors
in
the
community
that
didn't
want
additional
height.
F
So
I
think
that
if
we
can
find
a
way
to
have
more
affordable
units
without
having
funding,
it's
a
it's.
It's
great
that
win-win
for
everyone
and
everyone
needs
to
a
certain
extent,
contribute
developers,
landowners,
the
city,
homebuyers,
tenants,
it's
a
it's
a
an
effort
that
ever
wanted
to
do
something
to
try
to
make
it
happen.
G
D
You
so
good
evening
again,
my
name
is
Tim
Conte
I'm,
with
the
Federal
Home
Loan
Bank
of
Chicago
and
I'm,
going
to
guess
that
we
are
probably
one
of
the
largest
banks
that
many
of
you
have
never
heard
of
so
I'm,
going
to
take
just
a
moment
to
tell
you
who
we
are
and
why
we
exist.
So
the
Federal
Home
Loan
Bank
of
Chicago,
despite
our
name,
were
not
a
federal
agency,
but
we're
also
when
we're
not
a
retail
bank.
D
No
one
here
has
a
checking
account
with
us,
but
we
are
congressionally
chartered
along
with
10
other
home
owned
banks
in
the
country,
so
there
are
11
and
the
primary
purpose
of
the
Home
Loan
Banks
is
to
be
a
bank
for
banks.
So
we
are
member
owned.
We
have
about
720
members,
their
banks,
credit
unions,
financial
institutions
and
insurance
companies
that
are
chartered
in
Illinois
or
Wisconsin.
So
most
of
our
work
is
right
here
in
Illinois
Wisconsin.
D
One
of
the
unique
features
of
the
Federal
Home
Loan
Bank
system
is
that
each
year
every
Home
Loan
Bank
contributes
10%
of
its
earnings
to
an
affordable
housing
grant
program.
And
if
we
took
that
10%
and
added
it
up
across
the
11
home
on
banks
across
the
country,
our
grant-making
is
the
largest
source
of
private
grant
dollars
exclusively
for
affordable
housing
in
the
country.
In
fact,
since
we
started
our
program,
we
have
granted
or
invested
in
I
should
say
more
than
one
hundred
thousand
units
of
affordable
housing,
including
a
few
hundred
right
here
in
Evanston.
D
Ok,
so
I
always
feel
like
I
have
to
have
that
little
commercial
in
the
beginning,
because
I
introduced
myself
being
from
the
Federal
Home,
Loan,
Bank,
but
I
would
say,
I'm,
not
necessarily
a
banker
I'm,
really
a
community
developer,
who
works
at
a
bank
and
I,
have
the
awesome,
responsibility
and
privilege
of
working
in
affordable
housing.
So
with
that
I
want
to
just
quickly
revisit
the
slide
that
Collette
shared
earlier,
because
I
think
it
is
really
fundamental
to
understanding
one
of
the
challenges
in
financing.
Affordable
housing.
D
This
is
slide
uses
an
example
of
a
unit
that,
in
the
market
rate,
development,
would
rent
for
1650
a
month
right,
that's
very
pretty
typical,
but
the
affordable
unit
is
going
to
rent
for
$850
a
month
because
that's
what's
affordable
to
the
individual
who
needs
to
live
there,
but
in
a
perfect
world.
The
market
rate
unit
in
the
affordable
unit
really
cost
about
the
same
to
operate
right
because
they
should
be
fundamentally
substantially
similar
housing,
so
it
cost
an
average.
Let's
say
about
seven
hundred
dollars
a
month
to
operate
a
rental
unit.
D
I
have
to
pay
the
taxes.
I
have
to
pay
the
insurance
trash
removal,
snow
removal,
things
like
that
on
average
is
about
seven
hundred
dollars
a
month.
So
the
market
rate
development,
the
developer
or
the
owner
has
about
a
thousand
dollars
a
month
per
unit
that
they
can
redirect
to.
Another
purpose
may
be
its
profit,
but
more
often
than
not
it's
some
type
of
debt.
D
D
So
now,
I
only
have
two
hundred
fifty
dollars
a
month
of
available
cash
flow,
so
the
amount
of
debt
the
size
of
my
mortgage
that
I
can
get
on
an
affordable
project
is
much
smaller
right,
so
I'm
sure
you've
been
part
of
conversations
who
I've
heard
conversations
where
there's
questions
of.
Why
is
there
so
much
public
money
or
so
many
grant
dollars,
or
why
is
there
so
much
subsidy
going
to
an
affordable
housing
project?
D
This
is
one
of
the
fundamental
reasons
why,
okay,
so
with
that
I
suggest
that
there
are
really
a
few
different
ways
that
we
can
make
housing
affordable
or
we
can
subsidize
housing
on
one
end,
we
can
subsidize
the
development
of
it
right,
so
the
more
grant
dollars
or
low-cost
money
that
we
can
invest
in
the
development
of
it.
Theoretically,
that
means
that
projects
should
be
able
to
charge
lower
rents,
because
they're
gonna
have
a
smaller
mortgage.
D
Okay,
but
now
there's
also
a
way
where
we
can
subsidize
the
operations
of
the
housing
or
maybe
we
can
even
subsidize
the
individuals
who
need
the
housing
sometimes
for
the
lowest
income
populations.
We
have
to
do
all
three.
We
have
to
subsidize
the
development
and
we
have
to
subsidize
the
operations,
and
maybe
they
even
need
some
rental
city
right,
because
there
are
some
folks
in
our
community
with
incomes
that
are
that
low.
D
So,
on
the
development
side
I,
you
know,
I
could
teach
an
entire
class
in
development
finance,
but
that's
not
for
tonight,
but
to
introduce
some
of
the
programs.
The
low-income
housing
tax
credit
program.
You've
probably
heard
that
before
you
have
tax
credit
developments
here
in
Evanston,
they're,
very
competitive
credits,
but
it's
a
very
popular
multi-family,
affordable
development
program,
there's
also
historic
preservation,
tax
credits,
if
there's
a
historic
property
involved,
and
even
in
Illinois
we
have
the
benefit
of
having
something
called
a
donation,
tax
credit.
D
You
know
you
probably
know
the
city
of
Evanston
has
access
to
some
federal
grant
dollars
the
home
program,
Community
Development,
Block
Grant.
They
can
be
used
for
affordable
housing,
but
there's
also
a
lot
of
competition
for
other
uses
for
those
grant
dollars
as
well.
Some
communities
have
cost
funds
again:
the
Federal
Home
Loan,
Banks,
affordable
housing
program
and
then,
of
course,
going
down
into
the
rental
and
the
operating
subsidies
in
really
just
spending
a
moment
on
the
rental
subsidies
that
first
bullet
Housing
Choice
Voucher.
Many
of
you
might
have
heard
the
term
section.
Eight.
D
This
person
has
a
section
eight
certificate,
all
right.
We
really
don't
use
that
term
anymore,
although
I
think
is
still
very
commonplace.
Section
eight
certificate
is
now
known
as
a
Housing
Choice
Voucher.
That's
where
your
income
eligible
you're,
going
to
take
your
voucher,
go
into
the
private
market
pay
a
founder
unit
that
is,
has
a
reasonable
rent.
You're
gonna
pay,
thirty
percent
of
your
income
and
whoever
issued
that
voucher,
the
cocoanut,
the
Housing
Authority
of
Cook
County,
the
Chicago
Housing
Authority
whomever,
is
going
to
pay
the
difference.
D
Okay,
as
your
income
goes
up
a
little
bit,
maybe
your
share
of
the
rent
goes
up
right.
It's
always
thirty
percent,
but
the
this
voucher
allows
you
to
have
some
housing
choice
and
it
allows
to
have
access
to
affordable
housing
across
your
community
within
the
last
few
years.
Is
a
relatively
new
program
called
the
Veterans
Administration,
a
fair,
supportive
housing
where
specific
to
veterans
who
need
some
rental,
subsidy
and
access
to
support
services.
D
But
I
mentioned
those
programs
because
in
an
apologize
defense,
a
little
smile
on
the
slide,
I
promise
to
look
bigger
on
my
screen
at
the
desk,
but
for
many
years
the
majority
of
affordable
rental
housing
was
really
provided
by
either
giving
a
household
a
Housing,
Choice
Voucher
or
what
used
to
be
called
sectioning
or
the
development
of
public
housing.
But
it's
only
in
the
recent
years
that
this
low-income
housing
tax
credit
has
really
become
the
engine,
the
production
engine
for
creating
new,
affordable
rental
housing.
D
So
the
tax
credit
program
focuses
on
development,
where
the
section
8
or
the
Housing
Choice
Voucher
really
helps
you
access
what
already
exists.
So
when
we
have
more
emphasis
on
the
low-income
housing
tax
credit,
it
should
not
be
any
surprise
to
us
that
there's
more
pressure
on
development
right,
because
the
developer,
whether
they're
a
for-profit
or
nonprofit
there,
they
need
to
follow
the
money
that
allows
them
to
do
what
they
want
or
need
to
do.
D
So
when
the
majority
of
the
resource
today
is
now
in
this
low-income
housing
tax
credit
in
the
and
you
need
to
build
something
to
get
the
tax
credit
or
buy
and
rehabilitate
something
to
get
the
tax
credit.
That's
where
the
pressure
is
going
to
be,
but,
interestingly
enough
in
2015-
and
this
is
the
most
recent
data
available,
so
you
can
see
tax
credits
most
popular
right,
but
this
is
only
a
small
piece
of
the
the
federal
housing
subsidy.
If
you
will
so
in
2015,
our
government
ashlee
subsidized
190
million
dollar.
D
Excuse
me
190
billion
dollars
in
housing,
190
billion,
but
the
majority
of
that
actually
went
to
home
owners
about
70
percent
of
that
subsidy
went
to
homeowners.
Many
of
you
probably
own
a
home.
Maybe
many
of
you
probably
right
off
your
mortgage
interest
or
your
real
estate
taxes
or
you
sold
a
home
and
you
were
exempted
from
a
capital
gain
right.
That's
all
a
forgone
income,
if
you
will
to
our
government.
D
D
If
you
are
a
household
with
an
income
of
$20,000
or
less
your
share
of
federal
housing.
Subsidy
was
about
$1,500
right,
so
think
about
that
opposite
ends
of
the
spectrum:
households
with
incomes
below
$20,000,
getting
a
share
of
about
1,500
dollars
a
year
in
subsidy,
households
with
incomes
over
200,000
we're
getting
over
$6,000
in
housing,
subsidy,
and
some
would
argue
that
this
end
of
the
spectrum
is
probably
the
population
that
needs
a
subsidy.
The
least
right,
but
I
am
NOT
here
to
offer
opinion
I'm
here
to
just
report
the
facts.
D
So
we
have
this
long
term,
housing,
tax
credit,
that's
where
most
folks
are
that's
how
most
developers
are
developing,
affordable,
housing
today
and
without
going
into
too
much
detail.
If
a
developer
has
awarded
these
very
competitive
tax
credits,
they
sell
them
and
they
turn
them
into
money,
and
then
that
money
helps
build
the
project
in
right
before
our
last
presidential
election
on
average,
a
developer
could
take
one
of
these
credits
and
sell
it
for
about
a
dollar
five.
Okay.
D
That
probably
doesn't
mean
a
whole
lot
to
you
other
than
to
compare
it
to
what
it's
worth
today.
That
one
credit
today
is
worth
about:
91
cents,
okay,
so
somebody
might
say:
well,
you
know
14
cents,
a
drop,
maybe
not
that
big
of
a
deal,
but
what
that
equates
to
is
on
average,
there's
$30,000
less
per
unit
of
subsidy
or
equity
to
help
build
it
all
right.
D
So
I'm
going
to
show
you
at
a
very
high
level
to
development
budgets
of
projects
that
we
have
invested
in
okay
in
part,
because
what
I
one
of
the
things
I
want
you
to
walk
away
with?
Is
that
affordable
because
it's
going
to
be
affordable?
Housing
does
not
necessarily
mean,
as
any
afford
of
any
more
affordable
to
build.
Okay,
the
the
affordable
project
uses
the
same
lumber
that
the
market
rate
project
does
we
use
the
same
concrete.
D
We
use
the
same
labor
right
and
we're
buying
the
same
piece
of
land
that
we're
competing
against
a
for-profit
for
okay,
so
there,
sir,
so
a
building
it
is
not
necessarily
any
less
expensive.
What
we're
trying
to
do
is
make
living
in
it
less
expensive.
So
with
that
here's
a
budget
of
1313
unit
rental
project,
13
units,
5.3
million
dollars,
I
I-
cannot
deny
that
this
is
a
significant
amount
of
money.
D
Okay,
but
some
of
the
things
to
look
at
here
and
not
all
of
these
sources
are
going
to
be
familiar
to
you
and
that's
okay,
but
the
one
that
I
want
to
point
out.
5.3
million
dollar
project
item
number
forces.
First
mortgage.
This,
the
only
debt
this
project
could
afford
was
a
three
hundred
thousand
dollar
mortgage.
All
of
that
other
money.
There
is
what
we
call
soft
money,
meaning
the
developer
doesn't
have
to
pay
it
back.
Now.
D
One
might
look
at
this
and
think
gosh,
a
5.3
million
dollar
project
and
all
you
could
afford-
was
a
three
hundred
thousand
dollar
mortgage.
I
hear
you
this
project
cash
flows
generates
188
dollars
a
month
per
unit.
Okay,
so
not
a
lot
of
money
and
that's
because
the
rents
that
they're
charging
are
somewhere
between
200
and
a
thousand
dollars
a
month,
because
that's
the
population.
They
need
to
serve
that.
You
know
when
you're
charging
someone
$200
a
month
for
rent
and
it
so
cost
you
six
hundred
dollars
a
month
to
operate
it
right.
D
So
there
has
to
be
some
offsetting
subsidy
somewhere
that
helps
provide
housing
for
these
people,
for
the
populations
that
really
need
it,
the
most
okay
as
an
investor
or
grantor
in
affordable
housing,
because
line
number
three
you'll
see
Federal
Home,
Loan
Bank
of
Chicago
we
granted
about
three
or
two
hundred
thirty
four
thousand
dollars
to
this
project.
We
always
make
sure
that
we
are
investing
in
projects
to
actually
need
our
money.
D
Okay,
if
this
project
was
generating
a
lot
of
cash
every
month,
we
might
look
at
and
say
you
know
what
you
can
have
a
larger
mortgage.
So
you
need
less
money
from
us,
but
similarly
what
we
don't
want
to
do,
what
doesn't
benefit
any
of
us
is
squeezing
some
of
these
housing
developers,
affordable,
housing
developers
so
thin
that
maybe
they
can
get
it
built.
But
then,
three
years
later,
they
can
afford
to
keep
the
lights
on
right.
So
what
we're
trying
to
do
is
ensure
the
long-term
financial
feasibility
of
this
affordable
housing.
D
So
when
we
invest
in
housing,
it
actually
goes
in
as
a
grant,
and
we
say
we
don't
expect
a
financial
return
on
the
investment
we
expect
of
social
return.
So
every
time
we
put
a
dollar
in
one
of
these
projects,
we
get
fifteen
years
of
quality,
affordable
rental
housing
in
return.
My
last
slide,
but
is
similar-looking
fifty
unit
project
right
so
significantly
larger
and
a
significantly
more
expensive
project,
almost
eighteen
million
dollars,
and
on
this
one
you'll
see
this
eighteen
million
dollar
project
could
afford
about
a
1.5
million
dollar
mortgage.
D
This
number
for
the
rest
of
these
sources
very
are
what
we
would
again
call
soft
or
they're
forgivable,
because
this
developer,
if
they,
if
he
or
she,
is
really
going
to
serve
the
lowest
income
popular
Shen's,
who
in
this
case
are
paying
anywhere
from
900
to
1200
dollars
a
month
in
rent
right.
So
that's
not
too
far.
You
know
that
it's
not
ridiculously
affordable
for
a
lot
of
people
right.
It
still
requires
all
of
this
soft
money
to
be
able
to
subsidize
the
development
operations
of
it.
D
B
You
guys
really
appreciate
all
of
that.
We
have
a
some
questions
that
I
was
going
to
ask
the
panelists,
but
first
since
we've
been
through
all
this
we've
thrown
a
bunch
of
numbers
at
you,
we've
thrown
a
lot
of
concepts,
wanted
to
just
take
a
pause
and
see
if
anyone
has
a
question
from
what
they've
just
heard
or
seen.
H
A
E
People
who
are
trying
to
provide
low-income
housing
but
do
not
want
to
be
involved
in
one
of
these
million
dollar
development.
My
neighborhood
is
being
victimized
by
gentrification,
and
the
older
people
in
our
neighborhood
are
trying
to
retain
our
buildings
and
yet
keep
the
rents
low.
But
it's
very
very
difficult
to
do
that
to
remain
in
Evanston.
There's
wondering
which
one
of
your
programs
is
to
recommend
or
is
there
any
policy
that
feels
that
people
have
the
right
to
live
in
certain
communities.
B
A
We
have
our
CDBG
housing
rehab
program,
that's
for
smaller
owner-occupied
to
flats
or
smaller
buildings
that
does
provide
assistance
up
to
$50,000.
We
do
have
a
new
program
called
the
landlord
rehabilitation
assistance
program
that
provides
its
half
and
half
the
landlord
has
to
pay
half
the
cost
of
the
repairing
the
unit
in
the
city
pays
the
other
half
and
it's
a
forgivable
loan
over
X
amount
of
time.
Depending
on
how
much
the
loan
is.
So
you
have
a
couple
of
programs
was.
E
K
Tim
I'm
addressing
this
question
to
you.
If
I
understood
your
example
correctly,
you
were
saying
that
the
Federal
Home
Loan
Bank
doesn't
expect
really
a
return
on
their
investment
other
than
to
have
affordable
housing
unit
say
for
15
years.
My
question
is:
what
happens
after
that
15
years
I
remember:
there
used
to
be
and
I'm
going
way
back
the
old
to
2
to
1
d3
in
236,
and
there
were
several
in
my
neighborhood
in
Chicago
that
when
they
mature
the
mortgage
was
paid
off
or
they
were
sold.
They
were
converted
to
private
market
housing.
Sure.
D
So
I
did
mention
that
when
we
invest
our
funds
into
an
affordable
housing
project,
we
look
at
it
as
a
social
return,
we're
not
necessarily
expecting
a
financial
return.
Many
of
the
projects
that
we
invest
in
are
developed
by
what
we
might
call
mission
driven
developers.
They
are
in
the
business
of
affordable
housing,
development
of
owning
it
in
managing
it
and
making
sure
that
it
mean
that
it
maintains
its
affordability
in
some
type
of
perpetuity.
D
It
is
not
uncommon
in
our
program
if,
let's
say
15
years
ago,
we
made
a
grant
to
a
project,
so
they
could
to
help
build
it.
That
project
reached
the
end
of
what,
if
it's
15
year,
what
we
call
retention
period,
affordability,
many
times
that
developer,
that
owner
comes
back
to
us
for
a
second
grant
to
help
rehabilitate
it,
because
now
is
15
years
old
and
it
needs
some
rehab.
D
Many
of
the
groups
that
we
work
with
aren't
interested
in
selling
it
into
the
private
market,
because
again,
they're
they're
more
mission
driven
now
there
are
other.
There
are
some
other
financing
sources
like
the
low-income
housing
tax
credit
that
often
require
an
affordability
of
at
least
30
years,
if
not
longer
so,
depending
on
the
funding
source
that
goes
into
it,
there
should
be
some
safeguards
to
ensure
it
some
long-term
affordability,
if
not
permanent
affordability,.
L
I
C
So
if
you
just
take
the
price
per
square
foot
at
3
dollars
and
40
cents,
that's
your
total
egi,
which
is
your
effective
girls,
income,
okay,
so
3
dollars
and
40
cents
times,
85,000
I
think
gets
to
that
number
or
pretty
close
to
it,
and
then
the
other
one
is
3
dollars
and
80
cents.
And
that's
that's
the
excuse
me.
Let
me
turn
the
mic.
That's
the
chunk
price,
the
difference
between
having
the
affordable
units
online
and
having
the
affordable
units
paid
for
and
not
online
and
all
of
the
units
paying
market
rent.
C
I
C
H
L
D
And
actually
I
probably
should
have
qualified
that
and
that
I
was
asked
to
speak
specific
to
affordable.
We
much
of
what
we
invest
is
invest
in
is
exclusively
affordable,
but
we're
not
limited
to
that.
We
actually
can
invest
in
what
is
called
mixed
income,
which
is
exactly
what
you're
trying
to
accomplish
here.
One
of
the
challenge
is
so
the
short
answer
is
yes.
Many
times
those
projects
can
be
eligible
in
our
program.
D
We
have
a
minimum
threshold
requirement
of
at
least
20
percent,
affordable
though
so
a
developer
would
need
to
to
commit
to
more
affordable
than
I
believe
what
your
current
ordinance
requires,
but
one
of
the
challenge,
the
mixed
income
project,
its
financing
structure,
looks
so
fundamentally
different
than
a
hundred
percent
affordable
and
what
I've
been
showing?
You
is
a
hundred
percent
affordable
and
many
of
these
financing
sources.
D
If
now,
all
of
them
are
likely
going
to
be
unavailable
to
a
developer,
who's,
doing
primarily
market-rate,
okay,
so
I
think
is
you
know,
I
I
think
I
hope
that
many
of
us
are
here
to
learn
about.
How
do
we
get
more
affordable
housing
units
in
our
community?
All
right
there's
a
few
different
strategies.
It
could
be,
you
know,
through
the
inclusionary
ordinance
it
could
be
by
supporting
100%.
Affordable
right
is
whatever's,
going
to
make
most
sense
for
that
population
in
the
neighborhood.
You
know
in
the
community
as
a
whole.
I
would.
F
When
we
do
our
projects
we
and
they
do
have
the
inclusionary
housing
component,
we
when
we
run
our
numbers
before
we
get
involved
with
the
project.
We
usually
exclude
the
land
and
we
allocate
the
value
of
the
land
to
the
market
rate
units.
So
that's
our
way
to
internally
justify
the
fact
that
the
market
hood
units
are
paying
for
the
land
when
we
buy
it
and
the
affordable
units
were
we're.
F
Not
they
are
having
land
paid
back
by
the
other
units,
but
the
main
reason
that
we
can
make
it
work
is
when
we
get
incentives
from
the
city,
such
as
the
density
bonuses,
that,
on
certain
cases,
only
relief
I
think
it
could
be
many
more
things
that
could
come
in
play
which
are
not
happening
right
now.
Maybe
parking
relief
could
be
in
certain
areas
that
are
close
to
public
transportation.
F
Tax
breaks
that
the
city
could
provide.
Those
are
not
things
that
we
are
they're
coming
into
play
right
now,
but
we
are.
We
are
getting
all
the
fees
related
to
those
units.
Permit
fees
are
being
waived,
so
we
are,
but
the
biggest
component
is
that
we
are
able
to
do
more
units
than
we
would.
We
could
have
done
without
the
affordable
units
in
the
projects.
I
think.
B
The
challenge
with
the
integration
of
some
of
the
unique
housing
financial
incentives,
financial
programs
that
are
out
there
mixing
them
with
market
rate,
is
the
high
potentially
higher
commitment
to
the
amount
of
affordable
housing
units
that
maybe
may
make
a
project
somewhat
unaffordable
or
maybe
difficult
to
finance.
On
the
other
side,
when
you
put
the
two
together,
sometimes
that's
a
little
challenging
I
think,
which
is
why
we
wanted
to
talk
about
the
idea
that,
in
a
certain
context,
when
you're
talking
just
truly
what
is
affordable
and
you
just
kind
of
set
the
base.
B
The
whole
mindset
is
that
a
lot
of
affordable
housing
is
privately
financed.
It
is
privately
owned.
There
is
a
definite
segment,
such
as
the
sort
of
financing
that
temps
at
the
Federal,
Home
Loan,
Bank
and
many
mission-driven
developers
do
that
use
all
the
tools
in
the
toolkit
that
are
available
from
a
lot
of
very
mission
driven
sources.
But
there
are
often
a
lot
of
strings
that
go
with
that
that
sometimes
don't
work
really
well,
when
you're
trying
to
mix
it
all
into
one
big
project,
so
a
lot
of
different
ways
to
skin
a
cat.
L
The
difference
between
projects
that
are
primarily
privately
financed
and
those
that
are
relying
very
heavily
on
public
I'll
say
quasi
public
sources.
There
were
a
number
of
projects
that
were
approved
by
our
City
Council
that
were,
as
I,
understood,
largely
privately
financed.
They
had
the
option
to
either
opt
out.
L
F
Am
I
wonder,
I
want
to
say
that
they
are
completely
separate
projects,
the
ones
that
have
a
hundred
percent
affordable
units
and
require
that
whole
funding
process
from
so
many
different
sources.
Then
market
rate
units
that
incorporate
affordable
units
when
I'm
looking
at
those
numbers
as
a
developer.
If
I
were
to
get
involved
with
that
project,
and
if
you
look
at
the
second
line,
those
are
not
projects
that
are
that
appealing
and
there's
not
a
lot
of
people.
I
want
to
get
involved
with
a
project
of
that
scale
and.
F
It's
a
lot
of
work
to
do
that
kind
of
project,
so
there's
also
in
their
project
or
not.
You
don't
see
that
often
they
require
two
strike.
To
have
that
sort
of
structure
is
a
very
complicated
process
to
get
all
that
funding
and,
from
a
developer's
point
of
view,
you're
not
you're,
not
able
to
provide
a
great
return
to
your
investors.
So
there
are
hard
projects
to
come
by
and
they're
completely
different
to
the
ones
that
we
do,
which
are
mixing
the
affordable
units
with
a
market
with
units.
F
We
haven't,
we've
never
done
one
of
those.
We
do
inclusionary
housing
in
our
project
and
we
don't
rely.
We
don't
have
a
single
source
of
subsidy
of
grant.
There's
zero,
so
the
only
resource
that
we
tried
to
rely
is
try
to
get
some
sort
of
incentive
from
the
city
on
our
project,
from
zoning
from
height
for
more
units
from
some
fees
that
are
waived.
That's
the
only
resource
that
we
have
as
developers
to
try
to
make
this
project
viable.
M
C
C
H
M
Think
one
of
the
things
we're
finding
here
in
evanston
is
that
the
developers
are
saying
you
know
in
this
particular
location
in
this
particular
market.
Doing
a.m.
eyes
of
50
and
60
percent
isn't
really
financially
feasible.
They
need
to
be
higher
a.m.
eyes
in
order
to
make
the
unit
on
site
feasible.
So
you
know
one
of
my
questions
has
to
do
with
how
how
big
an
impact
does
the
am
I
have
and
in
Highland
Park
I.
Think
that
a.m.
eyes
are.
You
know
eighty
percent
and
a
hundred
percent,
something
like
that.
Would
it
be
possible?
M
You
know
what
kinds
of
incentives
would
be
needed
to
make
it
feasible
to
have
units
of
fifty
percent.
We
have
people
who
are
wanting
to
have
units
at
thirty
percent,
and
is
that
something
you
know
yeah
I
guess
part
of
my
question
is
what
is
the
include,
what
what
are
inclusionary
housing
ordinances
good
for
you.
F
Know
I
just
wanted
to
make
a
comment
to
the
previous
question
in
regards
to
the
buyout
and
I
I.
Don't
think
it's
always
the
best
solution
for
developers
to
pay
the
fee
in
lieu
of
building,
affordable
units.
I.
Think
that
when
you
consider
depends
on
the
project
and
it
depends
on
the
on
the
plant
value,
it
depends
on
the
size
amount
of
units
I.
F
F
Think
that's
very
good,
and
even
though
there's
three
brackets
I
still
think
it
needs
to
be
more
flexible
because
in
reality,
when
we
get
tenant
into
our
buildings,
they
seem
great
candidates
and
for
some
reason
they
are
slightly
off
the
ami
ratio
for
the
unit's
we
have
available
and
they
need
to
be
a
specific
size
of
house
and
a
specific
income
process
for
a
specific
amount
of
bedrooms.
So
there's
too
many
components
that
we
need
to
try
to
find
the
right
match
for
a
specific
unit,
so
I
think
more.
N
Regarding
your
Highland
Park
projects,
we
are,
we
are
always
confronted
with
how
Highland
Park
has
done
things,
and
you
must
be
the
person
they're
referring
to
so
now
that
we
have.
You
here,
tell
us
about
your
most
successful
project
and
how
many
units
it
was
how
many
affordable
housing
units
you
place
you
had
in
it
and
how
many
people
you
play,
how
many
families
were
placed
and
what
percentage
of
AMI
were
they.
F
This
is
the
last
one
that
we
completed,
which
is
a
project
with
52
units
and
thanks
for
the
comments
about
Highland,
Park
I
feel
to
certain
extent
we
were
the
guinea
pigs
in
2007.
I
was
one
of
those
developers
that
was
forced
to
I
didn't
have
an
option.
If
I
wanted
to
do
a
project
there,
that
was
a
requirement
I
couldn't
buy
out.
It
wasn't
an
option
for
at
the
time
I'm
now
I'm,
a
strong
I
believe
strongly
affordable
housing
I
think
the
project's
work
out
great
one
of
the
interesting
things.
F
F
The
neighbors
are
now
the
residents
are
now
the
units
are
not
identified,
they
look
exactly
the
same
from
the
street.
These
are
local
residents
that
have
lived
in
Highland
Park
for
many
years.
Maybe
their
situation
financially
has
changed
where
they
cannot
afford
any
kind
of
rental.
So
it's
a
it's
a
it's.
A
great
benefit
to
have
that
close
to
where
people
live
and
what
they
want
to
stay
and
they
want
to
remain
sometimes
where
the
kids
go
to
the
schools.
They
want
to
stay
in
the
schools.
N
F
F
N
F
O
O
F
O
H
N
Gonna
take
a
political
crack
at
that
I'm
I'm,
an
alderman
in
the
eighth
ward,
I'm
on
the
Planning
and
Development
Committee.
We
hear
all
the
results
of
all
the
planned
commission,
Zoning,
Board
of
Appeals
cases,
etc.
I
believe
our
staff
and
some
aldermen
probably
would
be
very
agreeable
to
allowing
additional
height
or
additional
units
etc.
However,
our
community
is
very
conservative
when
it
comes
to
additional
height
additional
units.
That's
that's
where
our
problems
come
in
in
terms
of
incentives
for
development.
G
F
F
There
was
a
previous
developer
that
tried
to
do
a
few
more
units
and
it
took
them
one
year
and
they
did
not
succeed
and
that's
when
we
got
involved
with
the
property
and
we
had
meetings
with
four
or
five
meetings
where
we
had
about
30
neighbors
attend
these
meetings.
Before
going
to
the
Planning
Commission,
we
had
about
four
or
five
meters
with
the
Planning
Commission,
where
the
neighbors
came,
they
provided
their
feedback.
F
The
project
had
to
change
for
almost
one
year
making
changes
with
the
neighbors
meeting
infinitely
plan
and
design
commission
meeting
with
the
neighbors,
and
eventually
it
went
in
front
of
City
Council,
but
it
wasn't
an
easy
process
and
on
certain
instances,
I
had
to
go
to
people's
homes,
to
try
to
explain
the
project
and
to
try
to
understand
their
concerns.
So
it's
not
a
simple
process
and
I
think
that's
one
of
the
reasons
that
some
developers
want
to
take
a
shortcut
and
don't
want
to
go
through
a
one-year
process
to
try
to
get
an
approval.
P
Tim,
okay,
within
looking
at
your,
where
you're
talking
about
totally
with
subsidy,
affordable
housing
and
the
grants
and
things
that
you
give
through
the
trail
Home
Loan
Bank.
The
fifty
unit
of
new
construction
I
see
that
in
that
in
your
and
now
you
didn't
show
a
mortgage
in
there.
But
you
did
show
that
that
organization
deferred
there
and
developer
fees,
correct.
D
D
Then
this
developer
it
like
in
met
many
affordable
housing
projects.
We
don't
we
don't
begrudge
a
developer
from
making
a
fair
return
or
a
profit
on
this
project
right
everything
has
to
make
economic
sense,
whether
you
are
for
or
not-for-profit
oftentimes
in
an
affordable
housing
project.
A
developer
might
be
eligible
for
this
much
developer
fee,
but
the
project
can't
afford
to
pay
it
all
to
that
developer
at
once,
and
so
many
times
the
developer
will
what
we
call
defer
part
of
their
fee
to
help
finance
the
project.
D
So
in
this
case
the
developer
deferred
almost
$400,000
of
their
fee
and
as
that
project
is
able
to
pay
a
back
over
15
years,
that's
when
the
developer
will
continue
to
get
paid
and
many
times,
because
you
can
see
there's
six
different
sources
that
went
into
this
one
project
right
and
with
the
deferred
fee
being
one
of
them.
If
that
developer
had
not
deferred
their
fee,
this
project
may
not
have
been
built.
I
P
Evanston
had
fine,
they
have
three
that
still
on
the
books,
because
they
have
projects
that
are
still
in
the
line
and
stuff
in
everything.
We
do
have
a
community
develop
organization
that
is
here
in
Evanston,
not
based
in
Evanston.
It
is
a
Community
Land
Trust,
our
Highland
Park,
and
we
did
have
our
own
Community
Land
Trust
started,
and
we
did
do
a
house
where
we
did
go
through
all
of
these.
Not
all
of
we
used
about
three
of
these
funds
to
develop
the
house.
P
The
first
affordable
permanently
affordable
house
here
in
Evanston,
and
it
is
a
challenge
and
it's
hard,
but
in
when
you
talk
to
about
they
had
we
did
the
inclusionary
zoning
and
there
was
a
two
box
where
they
had
density
for
height
and
stuff
and
everything
and
it
kind
of
didn't
it
didn't
work.
The
most
of
the
developer
came
in
and
felt
it
was
for
them.
It
was
better
if
they
paid
the
fee
in
lieu
unfortunate.
We,
it
happened
during
the
time
when
the
organ
the
ordinance
wasn't
approved
the
what's
going
on.
P
They
was
in
the
pipeline
and
we
didn't
get
any
money
for
that,
so
we
got
a
little
behind,
but
that's
okay,
we
still
plug
in
alone.
So
one
thing
that
was
interesting:
that,
with
the
selling
of
the
tax
credit
and
the
Illinois
donation
tax
credit
that
individuals
can
use
that
to
help
in
terms
of
donating
when
they
sell
the
house
to
a
unit
to
sell
it
at
a
lower
rate
to
do
not
donate
part
of
the
cost
by
lowering
the
price
and
they
get
that's
how
they
can
get
part
of
the
Illinois
donated
credit.
P
D
Most
familiar
with
the
use
of
the
Illinois
is
actually
called
the
Illinois,
affordable
housing
tax
credit
commonly
referred
to
as
a
donation,
tax
credit
generally
used
in
multi-family
housing,
where
land
or
buildings
are
being
sold
at
a
discount
or
donation
there.
The
conveyor
of
that
real
estate
gets
some
tax
credit
consideration
for
that,
but
many
times
once
that
tax
credit
is
sold,
that
equity
that's
generated
goes
right
back
into
the
affordable
housing
project
to
help
pay
for
it.
D
I
also
want
to
mention
that,
because
you
did
mention
community
housing,
development
organizations,
Community
Development,
Corporation,
so
Chodos
CDC's
last
year-
and
it's
been
this
way
in
recent
years.
The
vast
majority
of
rental
housing
that
we
invest
in
is
led
by
a
non-profit.
So
these
are
examples
of
nonprofit
housing
developers,
some
of
whom
partner
with
for-profit
developers
to
help
build
the
nonprofit
capacity.
But
more
often
than
not,
we
are
working
directly
with
a
non-profit.
G
I
have
a
couple
of
related
questions
and
I
wasn't
here
for
some
of
the
presentation.
I
was
actually
listening
it
to
live
stream
in
my
car,
so
you
may
have
answered
elements
of
this,
but
I
don't
think
it's
sort
of
out
of
the
ballpark
completely.
We
have
in
our
inclusionary
housing
ordinance
an
option
if
developers
don't
pay
the
fee
in
lieu
they're,
building
affordable
units,
but
somehow
they
want
to
tinker
with
the
provisions.
G
What
we
would
use
to
assess
this,
so
you
know
the
standard
figure
that
I've
heard
bandied
about
in
terms
of
what
it
costs
to
build
each
unit
just
and
I'm
talking
about
private
plan
developments,
which
is
what
all
we've
had
here
in
the
past
few
years,
that
her
in
the
past
year
is
that
it's
300
K
to
build
each
of
these
units,
which
seems
outlandish.
But
but
you
know
actually.
G
G
G
What
is
it
work?
What
is
the
value
of
each
affordable
unit
and
I
and
I
heard
some
some
data
about
this
on
the
way
here,
but
I
didn't
get
all
of
it.
It
sounded
you
know
complicated,
but
is
there
something
that
you
can
tell
us
on
what
is
a
fair
way
to
look
at
each
affordable
unit
like
what
is
the
value?
G
What
in
what
because
we're,
also
told
you
know
we're
told
that
each
one
is
worth
300,000,
but
then,
on
the
flip
side,
we're
told
that
well,
each
affordable
unit
reduces
the
value
of
this
building
so
that
the
loan-to-value
you
know
when
we
go
to
financing
is
eschewed.
It's
it's
it's
too
low
for
for
us
to
get
financing.
If
we
do
all
these
affordable
units,
so
I'm
extremely
baffled
as
to
how
you
take
a
unit
of
affordable
housing
and
figure.
What
how
you
figure
this.
J
I'm,
just
gonna
make
a
point
if
you
look
at
Tim's
number
of
his
development
just
because
you
were
talking
about
unit
costs.
If
you
divided
that
by
the
number
of
units,
the
unit
cost
is
almost
360,000
in
that
particular
example.
So
so
in
the
inclusionary
housing
ordinance
in
the
Evanston
inclusionary
housing
order,
nobody
ever
really
believed
the
the
amount
of
the
in
the
vien
Lu
was
never
intended
to
be
able
to
completely
pay
the
cost
of
unit.
If
that
were
to
be
put
as
the
fee
in
lieu.
The
belief
is
that
that
would
ya.
C
J
Off
development
I
mean
you're,
just
at
the
point
where
it
wouldn't
work.
The
premise
of
our
inclusionary
housing
ordinance
is,
if
that,
if
developers
put
10%
of
the
units
on
site
at
the
affordability
levels,
they
were
supposed
to
get
a
10%
bonus
in
height
10%,
bonus
in
units
and
other
offsets.
They
get
their
building,
permit
fees
waived
on
the
affordable
units
and
they
get
deferred
on
the
market
rate
units
until
first
temporary
certificate
of
occupancy,
which
means
they
don't
pay
those
costs
until
they're
starting
to
generate
income
and
they
get
parking
reductions.
J
The
challenge
is,
the
cost
is
not
working
to
the
point
where
they
can
put
all
ten
percent
on
site
and
they
are
not
being
allowed
because
they
are
not
being
allowed
the
bonuses-
and
this
is
what
alderman
Rainey
pointed
out.
In
other
words,
if,
if
the
equation-
because
there
were
a
bunch
of
calculations
done
and
formulas
run,
to
try
to
get
to
this
ten
percent
bonus
and
all
that
stuff,
but
if
we
don't
allow
them
the
height
to
get
to
that
additional,
then
the
project
doesn't
pencil.
It
doesn't
give
the
returns.
Okay,.
G
N
It
means
80,
oh
I,
think
what
what
the
the
legislative
intent
of
that,
in
my
mind,
was-
and
this
is
my
opinion
based
on
our
discussions-
was
instead
of
a
tiered,
like
so
many
50
percent,
so
many
30
percent.
There
are
so
many
80
percent,
so
many
60
percent.
Maybe
a
developer,
will
come
to
us
and
say:
look
we
want
to
put
all
of
the
units
on
site,
but
it's
got
to
be
between
60
and
80
percent,
or
we
want
to
put
all
the
units
on
site.
N
J
J
Well,
let
me
give
you
an
example:
if
you
look
at
the
project
that
was
just
approved
last
night,
which
is
176
units
I,
think
they're
gonna
have
17
units
affordable
units
on
site,
but
they
are
not
at
the
50
and
60
percent
of
area,
median
income
they're
at
50,
60
and
80.
So
they're,
not
getting
bonuses
they're,
not
getting
any
of
that
stuff,
but
the
cost
to
them
of
those
affordable
units.
If
you
look
at
the
loss
of
income
over
the
25
years
and
stuff
like
that,
is
over
3.4
million,
so.
J
J
Q
I'm
sort
of
new
in
this
and
I'm
learning
a
lot
from
all
of
you.
So
thank
you
in
terms
of
some
quick
look
at
this
I
see
the
need
for
profit.
I
understand,
I,
have
an
MBA
and
I
understand
the
need
for
profit.
I
also
understand
social,
good
and
social
good
can
allow
for
less
money.
Return,
as
opposed
to
social
return,
is
Tim
discussed.
There's
one
thing
that
we
haven't
tried
in
terms
of
what
I
see
and
that's
Tim's
I
just
took
this
13
unit
example
and
I.
Q
Don't
know
if
you
have
a
picture
of
that
or
something
but
13
units.
If
we
deal
with
affordable
housing
credits,
that
would
only
be
three
for
the
300,000.
That's
an
investment
part
would
only
be
three
units
of
affordable
housing
if
we
did
with
300,000
from
the
affordable
housing
money
that
we
have
and
then
maybe
eventually
find
some
donor.
That
would
help
out
too,
or
maybe
some
return,
because
I've
read
about
some
of
these
investments
that
can
have
a
return
that
can
come
back
and
pay
off
the
loan
or
they
get
the
investment.
Q
Q
Tim's
route
and
I
also
liked
what
you
said
in
terms
of
Highland
Park
development
that
you
did
swaps,
because
when
you
swap
to
like
some
20%
down
to
15%
you're,
not
having
a
money
value
come
in
they're
translating
what
that
that
net
effect
is
so
but
I'm
saying
we
need.
We
need
more
social
investment.
Not
that's
a
financial
investment
by
yourself,
I.
A
B
Wanted
to
weigh
in
a
little
bit
on
the
social
investment
side
is
I,
actually
am
actively
involved
with
a
not-for-profit
REIT
that
actually
totally
exists
for
the
purpose
of
financing
and
the
preservation
of
affordable
and
workforce
housing
around
the
country.
That's
what
it
does,
and
one
of
the
interesting
challenges
with
the
social
mission
model,
which
is
that
it
requires
an
incredibly
intricate
platform
of
capital
sources,
most
of
whom
at
some
level
are
still
looking
for
something
back.
B
A
not
for
profit
mission
are
usually
in
the
position
of
still
having
to
return
some
sort
of
return
to
somebody,
so
you
can't
totally
reduce
the
expense
exposure
from
that
vehicle,
so
the
hybrids
tend
to
be
floating
up,
no
matter
how
ever
you
get
through
it
and
I
think
that
the
effort
here
to
create
different
methodologies
for
trying
to
deliver.
B
This
is
really
consistent
with
some
of
the
challenges
in
the
capital
markets
these
days
in
trying
to
deliver
quality
housing
in
a
broad
range
of
affordability
that
allows
for
inclusionary
environments
and
communities,
and
there
are
so
many
forces
that
get
in
the
way
that
the
sole
collaborative
engagement
of
unique
funding
sources,
market
rate
inclusionary,
you
know,
compromises
and
bank
facilitating.
Is
it's
actually
an
imperative,
combined
with
community
capacity
to
help
support
flexibility
and,
at
the
end
of
the
day,
you
can
have
all
these
other
things.
This
is
my
opinion.
B
N
O
D
I
mean
perhaps
but
I
also
I
happened
to
start
my
affordable
housing
career
at
the
inception
of
the
low-income
housing
tax
credit
program
when
it
was
selling
for
60
cents,
so
I
mean
it's
been
that
low
since
and
it's
been
as
high
as
you
know,
over
a
dollar
so
I
think
it's
still
a
very
competitive
and
attractive
capital
source.
It
may
not
have
the
value
that
it
did
before
the
last
election,
but
I
also
just
don't
want
to
discount
the
value
that
ninety-one
census.
D
Of
course,
we
all
hope
it
doesn't
go
significantly
lower,
but
there
are
still
institutional
investors
are
buying.
These
credits,
like
big
banks
that
have
Community
Reinvestment
Act
obligations,
other
large
for-profit
corporations
with
perhaps
a
reduced
tax
liability,
but
still
have
some
tax
liability.
So
you
know,
if
you
look
at
the
recent
competitive
round
of
the
low-income
housing
tax
credit
program
that
was
hosted
by
the
Illinois
Housing
Development
Authority.
There
were
certainly
not
a
lack
of
demand,
so
while
the
value
has
has
been
sliding,
we
haven't
really
seen
a
fall-off.