Demonstration Housing Program By JAN M. GRAYSON, Director Illinois Department of Commerce and Community Affairs

In June 1990, the Illinois Housing Development Authority (IHDA) and the Illinois Department of Commerce and Community Affairs issued a joint Request for Proposals to rehabilitate housing stock which was about to become uninhabitable. The project used IHDA's Housing Trust Fund and DCCA's Illinois Home Weatherization Assistance Program funds to leverage dollars from private foundations, Tax Increment Financing Districts, and local community banks.

Called the Low Income Multi-Family Leveraging Project, this pilot program sought to restore multi-family housing units, increase affordable housing available to low-income families and prevent further deterioration in these neighborhoods. Families which ultimately occupied these structures met income guidelines established by the two programs.

Six organizations received final approval and funds: Carver Community Action Agency (Galesburg); DuPage County Department of Human Resources (Wheaton); Peoria Citizens Committee for Economic Opportunity (Peoria); Project NOW Community Action Agency (Rock Island); Rockford Human Resources Department and Tri-County Opportunities Council (Sterling). Four of these agencies purchased and now manage the housing units. Two agencies entered into agreements with not-for-profit housing development organizations to rent to low-income clients who are eligible for the weatherization and trust fund programs. A total of $99,000 was granted by DCCA to these six organizations. These funds leveraged $632,345, which included $99,000 from the trust fund and $533,345 from private foundations, Tax Increment Financing Districts, and local community banks.

A total of eleven properties containing 32 housing units were rehabilitated. Repairs to the structures included roofing, electrical, plumbing, structural repairs and furnace repairs or replacement. The rehabilitation not only provided affordable housing for low-income families but greatly improved market value. Total acquisition and rehabilitation costs were $724,340. The properties were subsequently appraised for $893,000, a 24% increase. The aesthetic appearance of these units improved to such an extent that in one case the building inspector failed to recognize the rehabilitated building which was located in downtown Rock Island. The market value of this particular unit increased 18%.

This pilot program is an example of the results that can be attained through the coordinated activities of organizations and communities sharing common goals. Six cities now have improved housing stock in their neighborhoods and thirty-two low income families have energy efficient homes at an affordable cost. The success of these joint projects is an indication of DCCA's increased effort to cooperate with local governments and coordinate services to support economic development. DCCA plans to expand this program during 1992. Those interested in further information on this project may contact DCCA's Division of Economic Opportunity at 217/785-3203. •

June 1992 / Illinois Municipal Review / Page 7