Illinois Community Action Development Corporation - …iacaanet.org/docs/annual_reports/2008_Annual_Report.pdf · 2008 Annual Report Bringing affordable ... The Illinois Community

Illinois Community ActionDevelopment Corporation

2008 Annual Report

Bringing affordable housingto Illinois’

low-income families.

Page 2Illinois Community Action Development Corporation

Mission and Goals ...........................................................................................................................................3

Letter from Board Chair .................................................................................................................................. 4

Board of Directors and Staff ............................................................................................................................ 5

History of ICADC ..........................................................................................................................................6

Financial Highlights ........................................................................................................................................ 8

DevelopmentPrairie Meadows .....................................................................................................................................10

Technical AssistanceRossville .................................................................................................................................................14Carbondale Homeownership Project ......................................................................................................16

Project ManagementWelch Woods .........................................................................................................................................20Strawberry Meadows ..............................................................................................................................21

Development ChallengesMt. Sterling ............................................................................................................................................22

Collaborations with IACAARental Housing Support Program ..........................................................................................................24Neighborhood Stabilization ...................................................................................................................24

Training .........................................................................................................................................................26

Utilizing the “Development Team” ................................................................................................................27

Table of Contents

Page 3Bringing affordable housing to Illinois’ low-income families.

Maintain an active and informed Board of Directors that reflects the diversity of CAA’s across the state

Operate with a strong management team comprised of experienced and qualified staff and consultants

Provide access across the state to high quality community and economic development training andtechnical assistance services

Participate in the development of affordable housing projects across the state

Help improve community and economic development policies and programs for economicallydisadvantaged populations in the state

Diversify and grow the funding base

Build and promote a strong network of supportive partners who work with the corporation to achieveits mission

MissionThe Illinois Community Action Development Corporation is a communitydevelopment organization that serves the community action network bydeveloping affordable housing and building the capacity of community actionagencies to meet the needs of their community.

IACDC Goals


Dear Members:

Last year was indeed a challenging year for the affordable housing developmentindustry. We witnessed the plunge of the housing market and the spiraling down ofour economy into a recession. The culmination of these events was tragic as manyfamilies across this nation lost their homes, jobs and life savings. Middle incomefamilies struggled to hold on to their homes as their interest rates spiked to thehighest levels of affordability. For organizations like the Illinois Community ActionDevelopment Corporation (ICADC), it became necessary to reassess our purposeand reposition ourselves in direct response to the doldrums of our economy and thehousing market. The affordability of housing emerged as a greater need beyond thepopulation targeted by ICADC and Community Action Agencies in Illinois.

As a national response to this crisis was conceived and promulgated by PresidentObama and the Congress, ICADC expanded its mission to include economicdevelopment. This was done so that ICADC would be positioned as an instrument ofdevelopment beyond affordable housing to be utilized by Community ActionAgencies in the communities they serve. Limiting its scope to affordable housing aswas the case in the past resulted in a limited ability to respond to the housing crisis.

The ICADC was engaged in planning and discussions with other statewide networkson how to stabilize the housing market so that fewer families lost their homes.Training continued to be provided to the Community Action network with potentialaffordable housing projects being cultivated for future development once the housingmarket improved.

This annual report will provide you with a snapshot of the projects we are involvedwith throughout the state. All of these projects are Community Action projects. Weare proud of our accomplishments and understand that we still have more work to doas we look to the future.

I urge you as members to approach our staff or board of directors if you have projectsyou would like to pursue in your communities. I would like to thank the ICADCBoard of Directors for their hard work in the past year. Secondly, I would like tothank the membership for its support, the staff for their dedication and hard work.Finally, I would like to thank all of our partners for their continued support,especially the Illinois Department of Commerce and Economic Opportunity.

Respectfully submitted,McFarland A. Bragg II, CCAPBoard ChairIllinois Community Action Development Corporation

Letter from Board Chair

McFarland A. Bragg II, CCAPBoard ChairIllinois Community ActionDevelopment Corporation


2008 Board of Directors

Chair McFarland Bragg IIPeoria Citizens Committee for Economic Opportunity, Inc. - Peoria, IL

Vice-Chair Dan LittleMCS Community Services - Jacksonville, IL

Secretary Angela FrazierMid Central Community Action - Bloomington, IL

Treasurer Walter HunterMadison County Community Development - Edwardsville, IL

Steve ArbuthnotNational City Bank - Springfield, IL

Directors Ken PettijohnWabash Area Development, Inc. - Enfield, IL

Rob SchroederWestern Egyptian Economic Opportunity Council - Steeleville, IL

Bob WhartonCEDA - Chicago, IL

Keith BrownBCMW Community Services-Centralia, IL

Mary RampDeKalb County Community Services - DeKalb, IL

Kevin WiehardtWestern Illinois Regional Council - CAA - Macomb, IL

Fred WhitmanEast Central Illinois Community Action Assoc.

Liaison Gail HedgesIllinois Department of Commerce and Economic Opportunity - Springfield, IL


History of ICADCIn the 1990’s, a recurrent themeappeared in the community needsassessments completed biannually byCommunity Action Agencies (CAA’s)in Illinois. The assessments indicatedthat a lack of affordable housingexisted across varying geographic areaswithin Illinois. Parallel to thisrealization was the acknowledgementof the varied capacity of CAA’s toaddress the unmet need of affordablehousing.

In response to the identified needs foraffordable housing and enhancedcapacity, CAA’s and the IllinoisAssociation of Community ActionAgencies (IACAA) collaborated in1999 to create a statewide entity, theIllinois Community ActionDevelopment Corporation (ICADC).The mission of ICADC would be toprovide training and technicalassistance (T & TA) to CAA’s onaffordable housing development forIllinois’ most vulnerable populations.The vision of CAA’s and IACAA tocreate ICADC was supported withseed money from the IllinoisDepartment of Commerce andEconomic Opportunity (IDCEO)making the entity a reality.Now in its tenth year of operation,ICADC has tailored its mission to notonly provide training and technicalassistance in regards to affordablehousing development, but in regardsto community and economicdevelopment as well. The T & TA

provided by ICADC is a unique andrefreshing approach customized tobuild the capacity of individual CAA’sand local communities by transferringthe knowledge and skills needed todevelop affordable housing and othercommunity resources. The result isthat CAA’s and local communitiesgain the expertise that is needed topursue economic developmentprojects in the future, independent ofICADC. Upon receiving T & TAfrom ICADC, CAA’s are equippedwith the knowledge, skills and abilitiesneeded to serve as developers,property managers, and intermediariesin other areas including homeinspections and housing counseling.

Community andEconomicDevelopmentCoupled withSupportive ServicesThe partnership between ICADC andCAAs employs the strengths of bothgroups to effectively address thecurrent lack of economic developmentresulting in affordable housing and

community infrastructure in ruralIllinois, as well as other problematicissues present within low-incomefamilies across the state. Based uponCAAs decades of experience inworking with lower income families,the founding partners of ICADCrecognized that building affordablehousing was not enough to ensure thelong term success of low-incomefamilies. To address the multipleneeds that low income families faceand to ensure that the long termbenefits of community and economicdevelopment has a positive impact,ICADC’s approach is to incorporatethe provision of CAA supportiveservices in each of its developmentendeavors.

ICADC Works toAddress the UnmetNeeds of RuralCommunitiesAlthough larger metro areas aretypically rich with talented developersspecializing in building affordablehousing, rural areas within Illinoishave been neglected. Many factorspresent within rural areas contribute


to making community and economicdevelopment cost prohibitive.ICADC is committed to workingwith rural communities to ensure theyobtain access to the resources theyrequire to adequately address theirneeds. ICADC focuses on the holisticview of the community in thateconomic development drawsbusinesses which increase the need forquality affordable housing, increaseschool enrollment and bringconsumer spending to markets thatotherwise would remain stagnant.

ICADC’s Broad ScopeICADC offers Training & TechnicalAssistance (T&TA) to theCommunity Action network, as wellas external organizations. The T&TAprovides the recipients with anopportunity to learn about developingand managing a wide array ofaffordable housing projects, while alsoobtaining first-hand experience byworking in tandem with ICADC to

develop an affordable housing project.ICADC has supported numerousCommunity Action Agencies withone-on-one technical assistance eitherfrom in-house staff or outsideconsultants. ICADC also providesfinancial support to new projectsbecause most CAAs lack the necessarypre-development resources to get aproject initiated. As one of its sourcesof financial support, ICADC intendsto continue working with the IllinoisHousing Development Authority(IHDA) to provide financingmechanisms for local CommunityAction Agency projects.

Tangible Results in theWay of AffordableHousingThere are multiple resources that arerequired to develop affordablehousing. The location of the projectis a primary key in order to make the

best use of the multiple funding layersthat go into each project. Studieshave shown that it does little good toprovide affordable housing if themarket does not meet several areas ofneed inclusive of live near work,accessibility to consumer needs, agingin place opportunities, and provendensity to support the housing.Since the creation of ICADC in 1999,the training, technical assistance anddirect involvement in developmenthas yielded tangible outcomes. Theseoutcomes include real progresstowards the completion of a variety ofreal estate development projects ofboth renters and home owners in ruralareas. These rural areas werecharacterized as lacking affordablehousing construction within theprevious forty (40) year withdistressed existing aged housing stock,if any available for rent. All of thehousing projects developed are energyefficient and will remain affordable forlow-income residents in the future.


Financials

Consolidated Statements of ActivitiesYear Ended December 31, 2008

Revenue and Other SupportGrant Revenue $ 312,307Development fee reimbursement 430Interest Income 3,135Other Income 11,150Total Revenue and Other Support $ 327,022

ExpendituresProgram ServicesAdmin. of low-income housing developments $ 278,300

Total Program Services $ 278,300

Support ServicesManagement and General 44,650

Total Expenditures $ 322,950

Change in Net Assets $ 4,072

Net Assets, Beginning of Year $ 450,109

Net Assets, End of Year $ 454,181


Development At-A-Glance...

A tribute to the American farmer in McFerren Park, Hoopeston, Illinois


About the CommunityHoopeston is situated at thecrossroads of two railroad lines ineastern Illinois which facilitates thetransporting of locally grown cropsprocessed by local canning factories.Agriculture has been the backbone forthis community for many years.Hoopeston currently boasts anexcellent school system, CarnegieLibrary, health care campus includinga hospital, medical center, nursinghome, and independent living center,recreational facilities, the historicFloral Hill Cemetery, historic LorraineTheater and more.

With the decline of manufacturing inthe last decade, Hoopeston has founditself at a new crossroads. However,even with the decline of industry andloss of jobs, Hoopeston has managedto retain a population of close to6,000 throughout the years. Thecurrent population is 5,965(according to the 2000 census).Preserving its heritage as a communityof strong faiths and thriving business,Hoopeston continues to worktogether for the betterment of itsresidents.

The City of Hoopeston haveestablished a vision for its future tohelp move the community forward ina positive direction: Hoopeston is a

East Central Illinois Community Action AgencyProject Name: Prairie Meadows Home Ownership ProjectLocation: Hoopeston, IllinoisTotal Cost: $5,098,506Number of Units: 25 - 2 and 3 bedroom unitsEstimated Completion Date: 2010Number of Jobs Created: 20

clean, safe, thriving and growingcommunity with a bustlingdowntown which is a touristattraction. Through innovative jobcreation and business recruitment,retention, and expansion strategies,Hoopeston is vital and alive witheconomic prosperity. Itscomprehensive spectrum of healthcare and social services isunprecedented for a community of itssize, making Hoopeston a great placeto raise a family. Known for itscommunity spirit and civicinvolvement, Hoopeston has builtbridges among its citizen groups, aswell as with its community neighbors.

About the ProjectPrairie Meadows is a housingdevelopment which will offer twenty-five (25) units of single family livingfor families on approximately ten (10)acres of land in Hoopeston, Illinois.Out of the 10 acre development willbe a 1 acre park to be located in themiddle of the development. Thesubdivision will have a unit mix oftwo and three bedroom single familydwellings ranging from approximately1045 square feet to 1331 square feetwhich will cater to low and moderate-income seniors or families. The unitswill all be visitable, 16 will beadaptable, and 3 will be fullyaccessible.

Future site of Prairie Meadows Homes, Hoopeston, Illinois


The design of the planneddevelopment will offer quality andaffordable housing for workingfamilies and seniors and will further,allow for future expansion in lateryears. Acreage is currently availableon the site for the inclusion of anadditional phase of the developmentwhich would be designated forwhatever housing needs are at thattime.

The initial housing will be providedthrough lease agreements and willbecome homeownership units in year20. Prior to year 20, existing residentswill be given the first opportunity tosign lease to purchase agreements withanticipated closing of the first homesat the end of the 20th year.Homeownership educational classeswill be provided to residents throughthe East Central Illinois CommunityAction Agency and the onset of thelease to purchase period.Memorandums of Agreement will beinitiated with other area serviceproviders to link appropriate capacitybuilding needs to the prospectivehomeowners.

StatusThis years efforts in Hoopeston hasresulted in a common themedmovement by both the communityand stakeholders to bring 25 singlefamily homes to Hoopeston to serveseniors and families with moderate tolow income levels. Strategic planning,community meetings, and overallcommunity partners working togetherenabled this LIHTC application to goforward. Prairie Meadows Homes,LLP was formed with East CentralCommunity Action Agency(ECICAA) as the sponsoring agencyand general partner. ECICAA

approved the formation of the PrairieMeadows Homes DevelopmentCorporation in February 2008.Prairie Meadows, LLP put an optionto purchase on 10.44 acres of land forPrairie Meadows. The builder forPrairie Meadows will be HorveBuilders. The City of Hoopestonagreed to contribute $400,000 of TIFmoney either in cash or in kind perthe Hoopeston City Council. TheCity Council also approved a zoningresolution which would allow for theproperty to be re-zoned for R1Residential as the property wasoriginally zoned light industrial. Asite plan has been drawn by Crowdryand German and a land survey hasbeen done by A-B Land Surveying.Crosspoint Human Services will be

the property manager of the project.They currently manage BowmanEstates for East Central and have aproven track record withmanagement. Currently ICADC isworking on identifying a bank inHoopeston or the surrounding areathat will add leverage to the projectthrough FHLB dollars. The tax creditapplication for the 25 single familyhomes has been submitted to IHDAas of April 6, 2009. The awardannouncements should be made inJuly. Due to the project usingHOME funds spread over 20 years ofthe life of the project, the project willnot become home-ownership until the20 years has concluded.

Site Plan for Prairie Meadows Development, Hoopeston, Illinois



Technical Assistance


East Central Illinois Community Action Agency(ECICAA)Project Name: Rossville Home Ownership ProjectLocation: RossvilleTotal cost: $650,000Number of Units: 3 to 5 unitsEstimated Completion: 2010

About the CommunityThe Village of Rossville is a ruralcommunity along Highway 1 inVermilion County. Rossville has apopulation of approximately 1,275with an estimated 596 housing unitswith approximately 77% owneroccupied. The land area covers anarea of 1.34 sq. miles in east centralIllinois. The median income for ahousehold in the city is $36,442compared to the median income forthe county at $41,553. The majoremployer is Con-Agra employingapproximately 125 persons. Otherresidents commute to surroundingcommunities inclusive of Hoopeston,Rantoul, and Danville foremployment.

The overwhelming cost burden ofhousing for the low to moderateincome households has beenidentified by the State of Illinois as itstop priority in relation to housing.The shortage of available housing forlow-income groups is compounded bythe lack of creditworthiness trainingand the need for capacity building inhomeownership skills and education.Also, effecting this population is thelimited or non-existent accessibility ofservice providers.

Although the acquisition and rental ofhousing is typically lower in ruralareas, the cost of new constructionand rehab is comparable to urbanareas. The small market potential forboth rental and for-sale housing inrural communities impedes cost-effective production. The Village ofRossville is an example of this realityat work. Many area residentscommute to Danville or Champaign-Urbana for employment, but enjoythe small town quality living of therural community. The expense ofbuilding affordable housing inRossville has deterred developmentdespite the expressed need from thecommunity.

About the ProjectThe Rossville Home-OwnershipProject involves the development ofthree to five two and three bedroomhomes. The homes will averagebetween 1100 and 1400 square feetwith an attached garage. Theproposed site for the housing projectis approximately a 4.6 acre tract thatis bordered on the west by residentialunits. The other three (3) sides of theproperty are agricultural fields. Thesite is conducive for providingadequate off-street parking, attractivelandscaping and other amenities forthe prospective homeowners.

In 2008, ICADC wasinvolved in providing

technical assistance tomany viable projects

throughout Illinois. Thisone-on-one technical

assistance negates the needfor CAAs and their

respective communities tohire expensive for-profit

developers. In 2008,ICADC’s technical assistance

to CAA’s included thedelivery of advice on

initiating pre-developmentactivities and/or the

completion of affordablehousing projects.

In instances when CAAshave been unable to

participate as a developer,ICADC has take on the roleof developer. In 2008, this

process unfolded withICADC maintaining a

commitment to involve therespective CAA in thedevelopment process

equipping the CAA withskills that could be useful toits community in the future.


The financing package for the projectwill include a 2nd mortgage and downpayment assistance from the RuralPartners Homeownership Initiative.The 2nd mortgage will be a 30 year0% interest balloon and range from$25,000 to $30,000 with downpayment assistance ranging from$3,000 to $5,000. Other layers offinancing include zoning incentives,local government contributions andcost reimbursements of eligibleexpense through a residential TaxIncrement Financing District.Families with household incomesbetween $26,100 and $41,750 willqualify for a mortgage provided thatthe household does not have a greatdeal of debt and has not held title to ahome in the past three years. Thefamily would be responsible foracquiring a 1st mortgage from a locallender, making a $1,000 cash downpayment from personal funds, andcompleting pre and post purchasecounseling and education. Thedevelopment cost for each unit isestimated at $130,000 while the saleprice is estimated at $90,000 utilizingdown payment assistance and secondmortgages provided through RuralPartners.

Downtown Rossville

Offering Technical Assistance Throughout Rural Illinois

ICADC was instrumental in assistingRossville in structuring a residentialTIF, which commits the localgovernment to extend public utilitiesto the area at no cost, as well as allowsfor reimbursements on eligibleconstruction costs. As a result, theVillage has already provided sewer andwater services to the site as well as gasand electric.

StatusCurrently ECICAA along with theVillage of Rossville are in themarketing stages of the project inorder to identify a homebuyer. In

correlation with the marketing efforts,the Village of Rossville has agreed tosell the lots for the project for $1.This collaboration between thecommunity leaders, ECICAA, andICADC evidences the successes thatcan be obtained when both privateand public partners form alliances tocreate economic opportunities withinthese rural communities. ICADC hasworked with ECICAA to help in landnegotiations, identification offinancial resources and will continueto provide technical assistance toECICAA as the RossvilleHomeownership Project ensues.


About the CommunityRental housing is less burdensomethan homeownership for seniors,however many seniors residing insmall rural communities do not havethis option. Developing smaller andstructurally conducive housing forolder persons’ lifestyles in ruralcommunities is needed. TheCarbondale Home Ownership Projecttargets very low-income seniors, manyof whom are women, living solely onsocial security and small pensions.The project includes the developmentof one-story, spacious homes withample off-street parking.

WEEOC collaborated with theSouthern Illinois Center forindependent Living to ensure three(3) of the homes were accessible tophysically disabled individuals earningless than fifty (50) percent of the areamedian income. For most peoplewith disabilities, finding a suitableplace to live in the community isdifficult, if not impossible. Lack ofaccessible, affordable housing is amajor obstacle to independent living,one that persists for disabled people ofall ages.

Low-income individuals withdisabilities were identified by theGovernor’s Executive Order 2003-18as an underserved population in need

Western Egyptian Economic Opportunity Council(WEEOC)Project Name: Carbondale Homeownership ProjectLocation: Carbondale, IllinoisTotal Cost: $1.3 millionNumber of Units: 5 single family homesEstimated Completion Date: 2008Number of Jobs Created: 15

of specialized affordable housing. Thecensus altered its definition ofdisability to mirror the ExecutiveOrder and as a consequence, it wasreported in 2000 that a staggering3,538,783 Illinois residents are livingwith disabilities.

About the ProjectThe Carbondale Home OwnershipProject is being co-developed byWEEOC and Attucks CommunityServices, Inc. The project involves thedevelopment of ten (10) 1,240 squarefoot, single family homeownershipunits. The proposed site isapproximately 1.3 acres on the northside of the City of Carbondale. Thetotal development costs areapproximately 1.3 million.

Financing senior and/or physicallydisabled housing, in small ruralcommunities is a major challengebecause of the multi-layered financingrequirements. The project financingincludes a grant from the City ofCarbondale, HOME funds, andAffordable Housing Program Funds.It is the co-developers intent to obtainsufficient subsidies enabling each ofthe units to sell for approximately$85,000.

The project has broad communitysupport, including: Southern Illinois

Agencies VisitedDuring the Year

City of Rockford HumanServicesCEFS EconomicOpportunity CorporationMid-Central CommunityAction AgencyCrosswalk CommunityAction Agency

Often ICADC is called by CAAsto either discuss or inspect

sites for future development orto look at existing aged ordistressed developments.

These visits bring bothchallenges and opportunities.

They also bring thoughtprovoking avenues based onthe individual circumstances

surrounding the location,community, need of the

population, and availableresources. Each visit is unique

and allows for collaboration onvarious levels. Although not all

visits have an immediatetangible result, they all bring

initiate future roads for futureopportunities.


University, Jackson County HousingAuthority, Lutheran Social Services,various community leaders andproperty owners. The communitysupporters have assembled into an adhoc committee that meets on a regularbasis to oversee the development ofthe project. The City of Carbondalehas extended its support for theproject because it has recognized theneed to increase homeownershipwithin the community. Currently,renters (mainly Southern IllinoisUniversity students) occupy overseventy (70) percent of the availablehousing stock in Carbondale.

StatusPhase 1 currently has five completedhomes; three of the five homes aresold and two are vacant. Recentmarketing efforts including televisedcommercials, distribution ofbrochures, and newspaper ads havegenerated additional interest in theproperty. In addition, WEEOCcontinues to call past applicants whowere not credit eligible when theyapplied to see if they have improvedcredit and could possibly now qualify.

However, despite marketing efforts, itwas determined by the WesternEgyptian Board of Directors to sellthe land that was intended for PhaseII. Furthermore, due to the pace ofthe home sales of the first phase,consideration is now being made tomake the two unsold homes of PhaseI lease to purchase units. Exhaustingmarketing efforts have failed toproduce eligible prospects for thehomes.

This project is considered a success asfive of the homes have beencompleted and three have sold toeligible families. ICADC willcontinue to offer technical assistanceto WEEOC through the completionof the entire project. Although ruralchallenges and obstacles often slowedthis project, the continuedcollaboration of service providersworking with the WEEOC staffbrought this property to fruition.

Carbondale Home Ownership Project,Carbondale, IL



Project ManagementProjects of the Past and their Impact Today...

42 Multi-Family UnitsWelch Woods, Beardstown, Illinois


Welch Woods is a low incomehousing tax credit financed propertythat has forty-two (42) two and three-bedroom family housing units thatinclude kitchen appliances, washerand dryer hook-ups, a maintenance-free exterior and energy efficientconstruction. The energy efficientcomponents built into these unitsensure that the units will operateaffordably for residents in the longterm. The success of Welch Woodshas been recognized statewide andfeatured in several of the State ofIllinois’ publications on housing.After careful research indicated therewas a critical need for affordablehousing in Beardstown, ICADCpartnered with the local CAA, MCSCommunity Services and ExcelCorporation, a a major localemployer, to develop an affordablehousing multi-family complex thatwas completed in 2005. This projectincorporated funding from the IllinoisHousing Development Authority,Enterprise Social DevelopmentCorporation and the IllinoisDepartment of Commerce and

Project ManagementMCS Community ServicesProject Name: Welch WoodsLocation: Beardstown, IllinoisTotal Cost: $5.2 MillionNumber of Units: 42 rental unitsCompletion Date: 2005Number of Jobs Created: 59

Economic Opportunity and ExcelCorporation. The city of Beardstownsupported the project by providingnew water and sewer lines. WelchWoods currently serves as one of thefirst Employer Assisted Housing (livenear work) projects completed inCentral Illinois. Since completion,Welch Woods has fostered othereconomic development activities inBeardstown and the surrounding area.ICADC continues to manage theproperty through the HousingAuthority of the County of Cass(HACC) with 100% occupancy levelsonly dropping during the turnover ofunits to waiting list persons. Intandem, ICADC and HACC ensurethat the project remains in LIHTCcompliance enabling the scheduleddelivery of the management anddeveloper’s fees.


Strawberry Meadows was establishedin West Frankfort, Illinois in FranklinCounty in March 2002 with groundbreaking beginning on thedevelopment in November 2002.Strawberry Meadows consists of 42units that are leased to low-incomeand very low-income families. IllinoisCommunity Action DevelopmentCorporation and BudslickManagement are the general partnersin the project with Budslick serving asthe property manager and holding99% of the managing partner interest.The majority of the property wasfunded by tax credits totaling$2,343,382.00 and an IHDA loantotaling $1,850,000.00. The taxcredits for the project were sold toUSA Institutional Tax Credit FundXXVIII, LP, Illinois Equity Fund, andRichman Group Capital Corporationin order to fund the construction anddevelopment of the project.Partnership interest for the abovementioned limited partners is69.97%, 30%, and .01% respectively,with both general partners holding a.01% partnership interest. TheCommunity Action Agency that

encompasses the project is known asCrosswalk Community ActionAgency. Strawberry Meadows reportsa healthy waiting list as well asconsistently high occupancy levelsyear round. A 2008 site visit byICADC staff revealed that these unitsare very well maintained and are apositive reflection of the community.

Crosswalk Community Action AgencyProject Name: Strawberry MeadowsLocation: West Frankfort, IllinoisNumber of Units: 42 Rental UnitsCompletion Date: 2003


Initially, discussions with Two RiversRegional Council of Public Officialson the possibility of partnering inBrown County for housingdevelopment ensued after the BrownCounty Housing Task Force identifiedhousing as a priority need in thecounty. Land was identified in Mt.Sterling for the potential developmentalthough the parcel was inbankruptcy. Windsor DevelopmentGroup put together a potentialdevelopment layout and budget.ICADC was going to be the developerwith Two Rivers Regional Council ofPublic Officials providing supportiveservices.

The development was to consist of 22single family homes that would rentto families at <60% of area medianincome in Brown County. In the 11th

month, the development would beginthe process of initiating three (3) yearlease to purchase contracts. In year 16the homes would be sold to the sameidentified population.

Funding was being sought from DOTFoods, a major local employer in Mt.Sterling with the land parcel beingdonated by Farmers State Bank afterjudgments were released in order toreceive the state donation tax credits.After further discussion, DOT Foodswas not interested in funding downpayment assistance nor were theyinterested in the investor equityposition through purchasing the taxcredits. Based on funding challengesthat were not met, the project was notviable.

Development ChallengesTwo Rivers Regional Council of Public OfficialsProject Name: Mt. Sterling Rental ProjectLocation: Mt. Sterling, Illinois


Collaborations with IACAABuilding Together


ICADC in partnership with IACAAprovided technical assistance on theRental Housing Support Program,Round I and Round II to seven ofour member agencies. The RentalHousing Support Program promotespermanent housing through thefunding of rent subsidies for these“rent burdened” extremely andseverly low-income households.Funding for rental assistance wasidentified as a significant need underthe 2005 “Building for Success:Illinois Comprehensive AffordableHousing Plan.”

A combination of low wages andlimited availability of affordablerental housing units requires manyfamilies and households throughoutthe State of Illinois to pay adisproportionate share of their

income for basic housing.Simultaneously, there are householdsin the state that face additionaldifficulty in finding affordablehousing due to disabilities or specialneeds of family members.

In order to address this pressing need,on July 5, 2005, then GovernorBlagojevich signed the RentalHousing Support Program Act. Fewerthan half the states in the nation havea rental assistance program and onlytwo other states, Massachusetts andConnecticut, provide long-term rentalsupport. The RHS program places a$10 surcharge on real estate documentrecordings and is expected to generatemore than $25 million dollars eachyear and assist an estimated 4,000households annually.

IACAA signed a three (3) yearcontract with the Illinois HousingDevelopment Authority on August28, 2008 to administer this programwithin 16 rural counties of Illinois inRound I of the RHSP. Participatingagencies in the endeavor were ProjectNow, Rockford Human Services, TwoRivers and WADI. Currently 57families are being assisted throughRound I funding of this program.Furthermore, IACAA has applied forand was awarded $1.5 in Round II ofthe RHSP. This partnership willinclude Tri-County Opportunities,Inc., Shawnee DevelopmentCorporation and Rockford HumanServices which will increase thecoverage by 16 counties to a total of32 counties in all.

Future Plans and ActivitiesNumerous Community Action AgenciesProject Name: Neighborhood Stabilization Program

ICADC in partnership with IACAAbegan assisting nine agencies on theNeighborhood Stabilization Program.This program is focused onidentification of either foreclosedproperty or land and redevelopingaffordable housing, thus stabilizingneighborhoods and communities. Thecurrent initiative incorporates fourmember agencies and is projected tohouse thirty six families. This

program encompasses acquisition,demolition or rehabilitation, newconstruction, and sales of singlefamily dwellings. Although there isinterest in this effort, the applicationsubmittal deadline is very short anddoes not allow for a lot of time toresearch and many agencies do nothave adequate personnel that candedicate the time required to puttogether the extensive material

required. It is anticipated that moreagencies will join this program inRound 2 in the fall of 2009.

Numerous Community Action AgenciesProject Name: Rental Housing Support Program


Training for MembershipBuilding Capacity


How to Become aCertfied HQS InspectorIn 2008, ICADC collaborated withthe National Association of Housingand Redevelopment Officials(NAHRO) to offer Housing QualityStandards (HQS) training andcertification to CAA’s. This trainingencompassed the US Department ofHousing and Urban Development’shousing inspection criteria which isused in numerous programs includingthose in which communities use blockgrant dollars for rehabilitation orHOME funds, Rental HousingSupport Programs, Public Housingand Housing Choice Voucher units.This was a three-day training courseheld December 15-17, 2008 withapproximately 40 attendees for allthree days.

How to Become aHUD Certfied HousingCounselorICADC sponsored HousingCounseling Training combined withtraining on how to become a HUDcertified housing counseling agencyon October 2, 2008. Classdiscussion involved basic creditcounseling techniques as well as howto use credit counseling as an ancillaryincome stream by becoming a HUDcertified counseling agency. This classrealized approximately 15 attendeesand was instructed by staff from bothICADC and HUD.

Training

Training provided byHousing Action IllinoisDevelopment Training was held toeducate CAAs on the initial steps tolook at housing development in theirrespective areas. This training beganwith identification of the need forhousing and what steps are taken towork with the identified communitiesto validate and initiate developmentopportunities. This class helped defineneeds, resources, and challenges metwhen attempting to bring affordablehousing to communities. Theparticipants walked away with aclearer understanding of what stepsare involved in housing development.


Utilizing the “Development Team”

Armed with lessons learned from bothsuccessful and unsuccessfuldevelopments, ICADC will beimplementing the concept of havingone development team for all futureprojects. The development team willconsist of the following with theirrespective roles and responsibilities:

Developer (Owner)The developer is defined as theproject’s sponsor. This role involvesthe coordination and management ofthe project. There are four scenariosthat will assist in defining the role ofthe developer on the team:1. ICADC will play the role of

developer in cases where the localCAA is not interested in fulfillingthat role.

2. If the CAA is interested in beingthe developer, ICADC willprovide technical assistance.

3. If the CAA is not able to fulfillthe role of developer on its ownthen ICADC will be a co-developer on the project.

4. ICADC may partner with a for-profit developer as a co-developerin order to bring a project tofruition.

ArchitectThe architect will be responsible forthe site plan and product design.ICADC intends to work with thearchitect in designing standarddrawings for both multifamily andsingle family homes which will beoffered as a package to communities.The architect will also be responsiblefor any other engineering work forprojects as well as supervising thegeneral contractor on site. ICADCwill have an architect on thedevelopment team who has a positivetrack record with low-moderateincome housing development.

AttorneyThe attorney will be responsible forensuring that all the due diligence as itpertains to the project-development istaken care of by the developer.ICADC will have an architect on theteam who has a positive track recordwith low-moderate income housingdevelopment in Illinois.

General ContractorThe general contractor will workclosely with the architect to build thehousing. ICADC may have morethan one contractor on itsdevelopment team depending oneconomies of scale and distance.However, ICADC will ensure that thegeneral contractor has a positive trackrecord with low-moderate incomehousing development.

ConsultantThe consultant will work withICADC to ensure that the phases ofthe project are implemented withinthe designated time frames.


IllinoisCommunityActionDevelopmentCorporation

Bringing affordable housing to Illinois’ low-income families.

3435 Liberty DriveSpringfield, Illinoi 62704217.789-0125Fax: 217-789-0139

www.icaanet.org

Documents

Illinois Community Action Development Corporation - …iacaanet.org/docs/annual_reports/2008_Annual_Report.pdf · 2008 Annual Report Bringing affordable ... The Illinois Community