The Lawndale Alliance, in Partnership with DePaul University,

Westside Association for Community Action and

Dvorak School, Presents

The Community Awareness Series

Meeting II: The Neighborhood Stabilization Program

Tuesday May 19, 2009

Dvorak School
6:00 P.M.

NOTES

This meeting series is dedicated in loving memory of Rev. Mary Edwards, Co-Pastor of the West Side
Center of Truth. Rev. Edwards was faithful in everything she did, with her family, church, the
community and the Lawndale Alliance. Her presence is truly missed.

Opening Remarks/Letters Valerie F. Leonard

- Valerie gave an overview on the Lawndale Alliance – an ad hoc group that comes
together whenever there is a problem or issue in the community. They first came
together around the proposed Ogden-Pulaski TIF, and advocated for a more responsive
plan. This included blocking the land banking of almost 1,000 vacant lots and saved
almost 300 families’ homes. They have been advocating for a TIF Advisory Council for
the past two years but without success.

- Last week the first town hall meeting of the Community Awareness Series addressed
how we could make a more community-friendly Olympics. Valerie gave out her contact
information for anyone who wants the notes or more information from that meeting –
valeriefleonard@msn.com.

Prayer Reverend Walter

Scripture Ms. Blanche Killingsworth

Panel Discussion Debbie Cannon, Moderator

- Debbie introduced the panel and began with Kristin Williams, because of her time
constraints.

Neighborhood Stabilization Program Kristin Williams

Illinois Department of Human Services

- The first Neighborhood Stabilization Program (NSP1) has opened its first round of funds
through a bidding process that recently closed. So the Department of Human Services
(DHS) is currently reviewing over 100 applicants for 46 million dollars in available
 funds. Chicago has over 50 applications alone, and quite a few from the Westside. Non-
profits, governments and municipalities, community action groups, and for-profits will
use the money to acquire and redevelop vacant and foreclosed properties with a focus
first on priority special needs populations.

- DHS encourages inter-jurisdictional or intercommunity projects to collaborate.

- NSP2 will hold an open bid process until July 17th, but organizations that want to apply
must apply directly to the U.S. Department of Housing and Urban Development (HUD).
Go to www.hud.gov for more information.

- For profit developers must apply in consortium with a non-profit or government entity
for NSP2 funds.

- HUD will identify municipalities that it will award money to. Both Cook County and the
City of Chicago have rolling applications. So developers can submit a bid to Mercy
Housing, the organization Chicago uses to manage the NSP money.

Mortgage Foreclosure Crisis Geoff Smith

Woodstock Institute

- NSP is a program designed to address vacant and foreclosed properties. It does not
address loan modification issues or delinquent payments or loans. NSP is the back end.

- Vacant and foreclosed properties are really concentrated in certain areas.

- Foreclosures are up from 2003, there has been a steady increase to mid 2008 and then a
big jump that continued into 2009.

- There has been an 89.3% increase in foreclosures in North Lawndale between 2006-
2008.

- There are 74.8 single family foreclosures per 100 mortgagable properties and 79.5% if
North Lawndale foreclosures were 2 to 6 unit buildings.

- In North Lawndale the change in renter-occupied housing decreased 14% between

1990-2000 – meaning there are less rental properties available for residents.

- Many more bank-owned properties are on the market but there are less people buying
these properties up than in previous years. So the demand for foreclosed properties is
very low and NSP is trying to stimulate that demand by providing money for rehabbing
and redeveloping properties. There are also affordability criteria.

- Concern – 46 million seems like a lot but it is a drop in the bucket for Chicago. The hope
is that it will create models or strategies that can be used in the future. The hope is also
to focus on small areas of the city where you can use a lot of money effectively.

- The greatest decline in value has been in the lowest cost housing – there has been a 29%
decline in houses previously valued at $90,000 but only a 24% decline in homes
previously valued at $297,000.
- There is concern about the effectiveness of the NSP – is there going to be access to loans
in a more restrictive lending environment? There is already an increase in demand
because prices have become more affordable. However, there are more restrictive terms
for people interested in buying a home.

Adonya Little
Illinois Housing Development Authority

Said she doesn’t have anything to add at the moment, and will help answer questions after
the next couple of presentations.

Debbie Cannon – Power Point Presentation on NSP

- Debbie presented a Power Point explaining the impact of NSP on North Lawndale –
please see the power point for more information.

Valerie Leonard – Analysis of the 94 page application document for NSP funds

- Below are some notes from Valerie’s presentation. Please see her handout for more
information.

- It is important that North Lawndale residents hold those who have the capacity to apply
for the NSP funds accountable. The city of Chicago used North Lawndale as an example
for why they need federal NSP funds, and we need to make sure they are used
appropriately for North Lawndale.

- One of the eligible uses for the NSP funds is to demolish blighted structures – we have to
be careful of this because North Lawndale has historic greystone homes that can’t be
replaced. We must be vigilant about protecting our historic structures.

- Applicants for NSP funds must apply for a MINIMUM of 5 million dollars.

- Citizen participation is a requirement for any organization that receives NSP funds. It’s
important that we take part in any meetings that are held by developers.

- NSP is not necessarily a new program, but similar to Community Development Block
Grants focused entirely on the foreclosure crisis.

- We need to be aware of what “affordable” means. The Average Median Income of all
Chicago residents is $75,000, but the Average Median Income for North Lawndale
residents is only $18,000. Who are they making the newly rehabbed or newly
redeveloped homes affordable for?

- One of the biggest complaints people are having about the city is that there are not as
many applications for smaller developers – how will this impact our local economy?
How is it really helping us? How do we use this program to put our people to work?

City of Chicago-Cancelled

Mercy Housing-Cancelled
 Chicago Rehab Network-Did Not Respond to Letter of Invitation

Alderman Dixon’s Remarks - cancelled

Questions and Answers Debbie Cannon

- Adonya Little said that developers have to show that their projects benefit the public
good, and she emphasized the importance of community members being present at any
public hearings that will be held.

- Explain neighborhood stabilization – foreclosures make the community unstable

because property values decrease and people’s living situations are less stable. The
program is to stabilize property values and to stabilize vacancy – it is not a social service
program that will guarantee help to people necessarily.

- For organizations who are interested in applying, please go to www.illinoisresource.net

for support and help with writing proposals.

- NSP2 is being administered directly through the federal government. Go to

www.hud.gov for more information. Mercy Housing is the delegate agency for Chicago,
which means they provide technical assistance.

- Is this program just for corporations? How will it benefit our community? – Debbie said
she hopes that it will bring in construction jobs. Valerie said that as concerned residents,
we need to push our organizations to go after funding and to be vigilant about holding
people accountable to what they say they are going to do.

- Geoff said he would be more than willing to share the Woodstock Institute’s data and
information with groups who want to apply for funds. Go to their web site to find his
contact information and more information – www.woodstockinst.org

Announcements /Closing Remarks Valerie F. Leonard

- Next week is our third town hall meeting. We will be focusing on

Tax Increment Financing districts in North Lawndale (in which
part of the community’s tax dollars are used for redevelopment
and other projects by the city).

Respectfully submitted,

Erin Sadzewicz