Illinois Housing Development Authority Kelly King Dibble Executive

Illinois Housing Development Authority Kelly King Dibble, Executive Director The Authority’s New Policy Role and Leadership Position Illinois Housing Development Authority

IHDA Background and History ¨ Created by the Illinois Legislature in 1967 in response to a housing crisis ¨ Mission: to finance the creation and preservation of affordable housing. – Multifamily rental developments –for a range of populations that includes families, the elderly, disabled, homeless and others – Homeownership programs for low- and moderate-income households ¨ Self Supporting Agency – IHDA receives no tax dollars or general revenue funds for its operations Illinois Housing Development Authority

IHDA Firsts ¨ From 1967 – Use proceeds from tax-exempt and taxable bond sales to ¨ ¨ ¨ finance multifamily developments 1982 – Began using bond proceeds to finance first-time homebuyer mortgages 1986 – Designated State Allocation Agency for the federal Low Income Housing Tax Credit Program 1989 – Initiated program activities under the Illinois Affordable Housing Trust Fund Program 1992 – Designated State Administrator federal HOME Program funds and onset of Consolidated Plan requirements Mid-1990 s – Expansion of IHDA’s preservation efforts, including risk share partnerships and Mark-to-Market responsibilities 2001 – Began allocations under the Illinois State Donations Tax Credit Fund Illinois Housing Development Authority

IHDA Program Activities ¨ Multifamily Developments – Financed nearly 100, 000 units, with $3. 3 billion – In SFY 2003, IHDA: • Allocated $236 million for 4600 affordable housing units • Leveraged an additional $251 million from other private, non-profit, and governmental resources ¨ Homeownership – Financed 63, 000 first-time homebuyers, with $3. 1 billion – In SFY 2003, IHDA allocated: • $115 million for 1400 first-time homebuyers • $7 million in loans and grants for homeowner renovations • $4 million in grants for down payment and closing costs ¨ Additional Responsibilities – Coordination of State Consolidated Plan to help Illinois access federal (HUD) funds – Statewide clearinghouse for housing information – HUD Participating Administrative Entity (PAE) to preserve affordable housing units Illinois Housing Development Authority

IHDA Moves Beyond Financing Illinois Housing Development Authority

Planning for Affordable Housing ¨ Governor’s Executive Order 2003 -18 – Task Force and Annual Comprehensive Housing Plan ¨ Coordinated Resource Allocation – Internal Changes and External Partners Illinois Housing Development Authority

EO 2003 -18 – Comprehensive Housing Plan ¨ Signed by Governor Blagojevich on September 16, 2003 ¨ Goals are twofold: – Comprehensive and coordinated statewide planning for housing issues – Better resource allocation for low- and moderate-income targeted populations: • Low income families (50% of AMI, with an emphasis on 30% of AMI) • Seniors • Disabled • Homeless and those at risk of homelessness • Workforce housing, near jobs and transportation • Preservation of existing affordable housing Illinois Housing Development Authority

EO 2003 -18 – Plan Participants ¨ The State’s Affordable Housing Task Force is working towards the first responsibility under the Order – a comprehensive statewide housing plan – IHDA’s Executive Director chairs the Task Force – IHDA serves as staff to the Task Force for the implementation of the Executive Order • Tangible example of how IHDA’s mission has expanded from financing and implementation into policy creation and leadership – Task Force brings other State agencies, private sector, and housing experts together • Intergovernmental Subcommittees include IDPA, DCFS, DHS, Transportation, Commerce and Economic Opportunity, and Public Health • Must create a report to the full Task Force by September 1 st of each year • Other housing, civic and community leaders throughout the state are on the Task Force Illinois Housing Development Authority

EO 2003 -18 – Outreach ¨ Task Force (Continued) – Seven working groups were formed in the spring of 2004, involving 210 experts whom met 3 -5 times each to address their particular issues • Family Housing, particularly families earning less than 50% of area median income, with a focus on families earning less than 30% of AMI • Special Needs Housing With Services, including the homeless, disabled, assisted living, ex-offenders and others • Special Needs Housing Without Services, independent living and accessible housing issues • Community & Regional Affordable Housing Strategies and Issues, including addressing the mismatch between the location of housing and jobs or transportation, and State incentives for local planning • Preservation / Rehabilitation, including expiring Section 8 contracts, predatory lending, foreclosures, and homeownership renovation • Rural / Small City Housing Issues, including transportation issues, bundling, need for improved access to private resources, housing stock, migrant housing, and more • Housing Innovation, which reviews current versus best practices and alternative types of financing and leveraging Illinois Housing Development Authority

EO 2003 -18 - Working Group Reports ¨ Task Force Working Groups identified a wide range of challenges: – Match funding of housing development dollars with service dollars in developments serving special needs populations – Decreased rental subsidies to reach very low-income renters – High cost of development and operations of multi-family affordable housing ¨ Task Force Working Groups identified a wide range of possible action steps: – Incentives for communities that engage in affordable housing planning and development – Forward commitment of service dollars to match capital – Property insurance pools to achieve savings through economies of scale – Bundling and pooling opportunities for small projects to better compete for competitive resources Illinois Housing Development Authority

EO 2003 -18 – The Statewide Plan ¨ The Task Force must create the Statewide Plan ¨ The Plan has several features • Must include a comprehensive statewide needs assessment • Must set statewide goals and recommendations for state funding sources and action • Must include specific suggestions, options, and incentives for local governments to develop their own plan ¨ The Plan must be presented to the Governor and the Illinois General Assembly by the end of the year ¨ An annual progress report is also required by April 1 of each year Illinois Housing Development Authority

EO 2003 -18 – Next Steps ¨ Next Steps for Completion of the Statewide Plan – Working groups submitted their recommendations for their particular issues in May. – The Executive Committee compiled the Working Group recommendations into a comprehensive matrix to distill into draft recommendations. – Needs assessment and housing market analysis has been subcontracted and will continue through September. – The Executive Committee and Task Force developed and reviewed “Leading Recommendations” to be initiated within the next year. – The Task Force Intergovernmental Subcommittee submitted its report to the Task Force and the Executive Committee on September 1 st, 2004 and the full Task Force and Executive Committee will meet in September and November to review it and the Annual Comprehensive Housing Plan. – The first Annual Comprehensive Housing Plan will be submitted to the Governor and Illinois General Assembly by late December of 2004. Illinois Housing Development Authority

EO 2003 -18 – Implementation ¨ IHDA and other State agencies will be responsible for implementing the plan – It will include a combination of administrative, programmatic and legislative recommendations • Short term and long term timeframes – Many initiatives can be incorporated into department planning for 2005 and beyond ¨ The Intergovernmental Subcommittee has additional requirements – Will identify and inventory State-administered housing programs and services – Will develop joint funding models to promote more efficient use of State resources Illinois Housing Development Authority

Consolidated Plan Coordination ¨ IHDA is also responsible for coordinating / developing the State’s Consolidated Plan and related funding applications to HUD – A prerequisite to receive federal formula grant funding under four major HUD programs (CDBG, HOME, ESG and HOPWA) • Approximately $68 Million Annually ¨ IHDA is coordinating the Task Force efforts with ongoing Consolidated Plan activities – The State’s Five Year Plan (2005 -2009) is also due to HUD later this year (November 15, 2004) Illinois Housing Development Authority

Coordinated Resource Allocation ¨ IHDA Multifamily Department Consolidation – Better internal coordination • Common Application • Streamlined underwriting – Tax Credit Qualified Allocation Plan (QAP) decisions support the priorities of the state ¨ Homeownership programs – Use flexible funding programs of Trust Fund and HOME to enhance homeownership opportunities – Expansion of Employer Assisted Homeownership programs to leverage additional resources – Administration of new American Dream Downpayment Initiative Program beginning in late 2004 Illinois Housing Development Authority

For Further Information Visit www. ihda. org Or Contact the Office of Housing Coordination Services (OHCS) at (312) 836 -5383 Illinois Housing Development Authority