CCLF_Newsletter_Spring_2010

COMMUNITY BLUEPRINT

CCLF E-NEWSLETTER OF COMMUNITY DEVELOPMENT PROJECTS, ISSUES & FEATURES Spring/2010

Neighborhood Stabilization Key to Recovery Partnerships move program forward

In This Issue Neighborhood Stabilization

Neighborhood Stabilization Program (NSP) activity across the country is a critical component of President Obama's plan for economic recovery. In Chicago, qualified developers will use $55.2 million of federal funds to swiftly acquire vacant foreclosed homes in 25 target areas and rehabilitate them so they can be occupied as soon as possible. So far, the program has committed $26 million to acquire and rehab properties, or 48% of the total grant, and is gaining more momentum every day.

Chicago Community Loan Fund is partnering with the City of Chicago NSP as its designated small-buildings lender. CCLF is using its experience and infrastructure to provide construction and development related financing to developers and projects pre-identified and approved by the City and its program administrator, Mercy Portfolio Services (MPS). CCLF construction loans are repaid using the City's NSP funding from HUD. The Chicago NSP seeks to build a silver lining for hundreds of homebuyers during the recession by putting the newly-renovated homes on the market for a fraction of what they would have cost just a few years ago. At the same time, long-standing community residents will see their home values stabilize and neighborhood decline prevented as blighted buildings are refashioned into homes for families.

City officials hope to apply NSP funding to as many as 2,500 units over three to five years. The houses being rehabilitated with NSP funds were previously at risk of becoming sources of blight and abandonment, which can escalate a host of other problems in neighborhoods already facing economic strain. Decades of investments in the targeted neighborhoods

Good Design Development Abroad CCLF Noteworthy Workshop Schedule Opportunities

CCLF Workshop Schedule To register for a workshop, contact Kate McInerney at 312-252-0440 x205, or visit our website at www.cclfchicago.org/ assistance/workshops.

June 8- Project Readiness Workshop August TBD- Housing Cooperatives October 4-5 - Building for Sustainability December 7 - Project Readiness Workshop

are being threatened by the foreclosure crisis. Though many signs of economic recovery are starting to emerge, mitigating the foreclosure crisis in Chicago is still a critical piece of protecting neighborhoods that are most at risk.

The Neighborhood Stabilization Program was passed into law as part of the Housing & Economic Recovery Act of 2008, which allocated $3.92 billion to be distributed to municipalities nationwide in several rounds. As noted above, the City of Chicago is already implementing its first-round funds, and expects to receive $98 million in the second round of funding. The city's allocation targets 25 neighborhoods in the city, chosen for their high concentration of foreclosures in order to stretch federal dollars for the largest impact.

To learn how to become a City of Chicago NSP developer or for more information, please visit the City of Chicago NSP website at www.chicagonsp.org.

Photo Credit: N. Paul Elue/CCLF

Good Design in Community Development Creating assets in communities

Affordability, transportation access, economic revitalization and job creation are all important pieces of creating a healthy neighborhood.

Lasting, community-enhancing developments should also incorporate good design, creating a desirable place to live and congregate.

The Affordable Housing Design Advisor (AHDA) is a collaboration between the U.S. Department of Housing and Urban Development, the American Institute of Architects and other groups. AHDA defines four good design criteria: Meet the User's Needs, Understand and Respond Whistler Crossing in Riverdale, IL won the Richard H. to Context, Enhance the Driehaus Foundation Preservation Award for Rehabilitation.

Neighborhood, and Be Photo courtesy of Holsten Real Estate Development Built to Last.

Corporation.

Developments that incorporate good design become assets for their communities, and utilize a layout that both enhances their neighborhood's aesthetic and increases safety. Developers who are interested in learning more can visit www.greenaffordable.org/gooddesign. CCLF's effort to promote good design in our projects is made possible by generous support from the Richard H. Driehaus Foundation.

Opportunities The CDFI Coalition has recently opened their membership to all organizations who support the mission of CDFIs. To find out more, visit their website at cdfi.org.

The Woodstock Institute recently celebrated the 25th anniversary of its Community Lending Fact Book, the leading resource for mortgage activity in the Chicago region. The Fact Book is available online at www.woodstockinst. org/factbook.

The IHDA MultiFamily Initiative Bonds program is offering tax-exempt financing with a fixed interest rate for developments financed by bonds that close by December 16, 2010.

Board of Directors John L. Tuohy, Esq. Chair Chapman and Cutler (retired) Susan Kaplan, Esq., Vice Chair Community Economic Development Law Project Edward J. Hoynes, CPA, Treasurer Community Accounting Services Mohammed M. Elahi, Secretary Andes Capital Group LLC Charles F. Daas Cambodian American Heritage Museum

Community Development Here and Abroad

CCLF staff member Jesse Davis to work with Peace Corps in Honduras CCLF Program Development Assistant Jesse Davis is also a full-time graduate student at the University of Illinois-Chicago's College of Urban Planning and Policy, but this summer he will be leaving to serve in the Central American country of Honduras. For the next two years, Davis will be working with the Municipal Development Project, a program operated by the Peace Corps' Masters International Program.

The Municipal Development Project is designed to enhance the quality of life for citizens by improving local government's ability to deliver services, promote gender equality, increase citizen participation and promote civic education.

"My work at CCLF has demonstrated to me the importance of working closely with stakeholders to ensure the success of community development projects. Since the Peace Corps was founded with a similar orientation to development strategy, I'm sure that I will be able to utilize many of the skills I developed here in Chicago," says Davis.

CCLF wishes Jesse the best of luck on this new stage of his work with community development organizations!

Toya Horn Howard, Esq. Real Estate Attorney Ed Jacob North Side Community Federal Credit Union Rafael M. Le贸n Chicago Metropolitan Housing Dev. Corp.

Glenn M. Mazade Charter One Bank Patricia Y. McCreary Seaway National Bank Raymond McGaugh, Esq. Finance Attorney Kay McNab, Esq. Winston & Strawn Richard Peabody, Jr. Finance Consultant Nancy Radner, Esq. Chicago Alliance to End Homelessness Matthew R. Reilein JPMorgan Chase & Co. Kathryn Tholin Center for Neighborhood Technology

CCLF Noteworthy Thank You to Funders and Investors For their recent grants, CCLF thanks Bank of America Foundation, The PrivateBank, Bank Leumi USA and First Midwest Bank. For their recent investment renewals or increases, CCLF thanks the Basilian Fathers of Toronto and Sisters of the Presentation of the Blessed Virgin Mary.

Credit Memos East Lake Management & Development Corporation received a $184,814 mortgage for six units of affordable housing in Grand Boulevard.

Thanks to Mark O'Meara and Adam Henckel of Chapman & Cutler LLP for serving as CCLF's counsel on this transaction.

The Resurrection Project received a $54,086 mortgage for five affordable rental units in Pilsen. Thanks to Mark O'Meara and Adam Henckel of Chapman & Cutler LLP for serving as CCLF's counsel on this transaction.

Racine Courts Cooperative received a $285,000 increase to their loan for the preservation of a 121-unit limited-equity housing cooperative in Morgan Park.

Genesis Housing Development Corporation received a $281,000 construction loan to rehab property in South Shore as part of the City of Racine Courts (Photo: Mark Fick) Chicago NSP. Thanks to Jeff Kuta, formerly of Holland & Knight, for serving as CCLF's counsel on this transaction.

Charles Walls ComEd

Staff Calvin L. Holmes Executive Director Jane I. Ames Director of Finance & Administration Rhonda McFarland Director of Lending Mark Fick Senior Loan/Program Officer Paul Gakhal Senior Loan/Program Officer N. Paul Elue Senior Portfolio Management Officer Clarice Norin Loan Closing/Portfolio Officer Juanita Walker Office Manager

Karry L. Young Development, LLC received an $875,000 construction loan to rehab property in West Englewood and Chicago Lawn as a part of the City of Chicago NSP. Thanks to Jeff Kuta of Jeffrey Kuta LLC for serving as CCLF's counsel on this transaction. They also received $146,000 and $175,000 construction loans to rehab properties in Englewood and Austin as part of the City of Chicago NSP. Community Male Empowerment Project received $240,000 and $222,500 construction loans to rehab properties in East Garfield Park and Lawndale as part of the City of Chicago NSP. Breaking Ground, Inc. received $249,000, $254,000 and $100,000 construction loans to rehab properties in North Lawndale as part of the City of Chicago NSP. Holmes Joins New Boards, Committees CCLF Executive Director Calvin L. Holmes recently joined the board of the Community Reinvestment Fund (CRF) in Minneapolis, Minnesota. CRF operates the leading national secondary market for community and economic development loans and provides capital to local community developers. Holmes also has recently joined the Opportunity Photo Credit: tonyvmartin.com Finance Network's (OFN) Policy Committee. OFN is the leading national network of private financial intermediaries. In addition, Holmes has joined the Advisory Board of Directors of the Mercy Loan Fund CDE, a CDFI subsidiary of Mercy Housing.

Emily Moen External Relations Associate Angela Bennett Finance & Administration Associate Kate McInerney Program Assistant Nga Nguyen LVC Program Assistant Jesse Davis Program Development Assistant

Credits Editors Emily Moen and Kate McInerney Printer Salsedo Press

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Mission To provide low cost, flexible financing and technical assistance to community development organizations engaged in affordable housing, social service and economic development initiatives that benefit low- and moderate-income neighborhoods and households throughout metropolitan Chicago.

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