Progress Illinois

First of all, I commend the aldermen for taking a stance on this issue. However, I think TIF reform should go much further. For starters,

1. There needs to be TIF advisory councils comprised of a broad base of community stakeholders who will analyze the effects of the TIFs upon local residents, and not serve as rubber stamps.
2. The Joint Review Board, which is comprised of representatives of taxing bodies that will be impacted by the TIFs should take their duty of care very seriously. They do not look at the impact of the TIFs on their taxing bodies (at least not publicly)-- how much revenue they could lose over 23 years , or come up with alternatives of dealing with forgone revenue. The only thing they evaluate is whether or not the TIF meets the Eligibility Requirements set forth by State Code. There is no serious deliberation over the issues, and the public is not allowed to speak. More often than not, the low income representative on the committee is clueless of any issues regarding the proposal, and does not exercise his/her authority to speak during the meetings. In some wards, public opinion is suppressed prior to the Joint Review Board meeting, and if the alderman attends the meeting, s/he does not share feedback that was presented by his/her constituents. As a result, the public’s issues never get addressed.

In communities like North Lawndale, nonprofits and foundations drive the planning and development upon which the TIFs are based. These tax exempt bodies wield a lot of influence, while rank and file tax payers’ input is completely ignored. The way the system is set up, low income minorities are financing their own displacement, which is very sad. I could go on ad nauseum about the changes that should be made to the system based upon my experience living in a TIF. Space does not allow that. I will say that someone needs to take the bull by the horns and do a complete overhaul of the system.

The article says "the data shows that in a quarter of all wards where TIF-subsidized affordable housing was constructed, for-sale units were priced for households earning as much as 2.5 times the community’s median income. In another quarter of those wards, TIF-funded rental housing cost as much $582 more per month than the average apartment in the neighborhood."

The conditions in North Lawndale are worse. Data from the 2000 Census suggest that North Lawndale had a high concentration of poverty, with a median family income of $20,585. At the time, 3,958 (41.7%) of the 9,484 families were living below the poverty line. Approximately 51.5% of the 3,422 families with related children under the age of 18 were living below the poverty line. Two thousand, nine hundred sixty-three (2,963) families, or 31.2% of all families, earned less than $10,000 per year. Families making $20,000 a year can afford rents of about $500 per month, and to purchase homes in the $71,000 range.

The local nonprofit agency whose plan drove the Ogden-Pulaski TIF sponsored a design charrette in which the community preferred developments that were 20% affordable. The distinction between low income housing and affordable housing was not made to the audience.

The affordable housing units in the design concepts were affordable to people making 80%-120% of the Area Median Income (AMI), which includes the Chicago metro area. At the time of the charrette, this would mean that the "affordable" units were in price ranges affordable to people making $60,000-$90,000, which is 3-4.5 times the local median income. Bear in mind that before the recession, North Lawndale had an unemployment rate of 23%, and ranked #3 in the city with respect to mortgage foreclosures. This issue was raised with the local cdc, as well as the nonprofit planning agency that helped coordinate the event. To the best of my knowledge, nothing is being done.

Housing is "affordable" when a household pays no more than 30 percent of its income on housing costs. Nationally, nearly a third of all households pay spend 30 percent or more of their incomes on housing, and 13 percent spend 50 percent or more. Locally, Chicago's housing wage -- the wage needed to rent an average 2 bedroom apartment -- is above $18 an hour.
Lake View Presbyterian's Affordable Housing Task Force was formed after we recognized that housing in Lakeview and in many areas of Chicago had become unaffordable to many in our congregation and in our community. So I think, they wont need any online personal loan for it.