GHICAGG | HOUSIN INITIATIVE FOR IMMEDIATE RELEASE: Wednesday, July 29, 2015 For more information contact: Leah Levinger Chicago Housing Initiative 773-787-6875 E-mail: leah@chicagohousinginitiative.org Website: http://chicagohousinginitiative.org Ordinance to Reform Chicago Housing Authority Re-introduced to City Council CHA accumulates cash stockpile of $440 million at the expense of housing for thousands Ordinance would provide 12,000 families affordable housing without drain on city's budget WHO: Alderman Joe Moreno, 1st Ward Alderman Susan Garza, 10" Ward Alderman Toni Foukes, 16" Ward Alderman David Moore, 17" Ward Alderman Rick Munoz, 22 Ward Alderman Danny Solis, 25" Ward Alderman Walter Bumett, 27" Ward Alderman Cappleman, 46" Ward Alderman Chris Taliaferro, 29" Ward Alderman Milly Santiago, 31% Ward Alderman Scott Waguespack, 32” Ward Alderman Deborah Mell, 33" Ward Alderman Carlos Rosa, 35” Ward Alderman Michele Smith, 43" Ward Alderman John Arena, 45" Ward Alderman Ameya Pawar, 47" Ward Cheryl Johnson, People for Community Recovery, Altgeld Gardens Resident Erana Jackson-Taylor, Kenwood Oakland Community Organization Demetrice Davis, Lugenia Burns Hope Center & Dearborn Homes Resident Tamiko Holt, Voucher Holder, Central Advisory Council & Resident Advisory Board Regina Rizzo, waiting list for housing voucher & mother of 2 WHAT: Press conference to re-introduce the Keeping the Promise Ordinance WHEN: Wednesday, July 29", 2015, 9:00 - 9:30 a.m. WHERE: Chicago City Hall, 121 N. LaSalle, 2" Floor, Chicago, IL 60602 CHICAGO ~ Sixteen City Council Members, led by 1" Ward Alderman Proco Joe Moreno will gather before the July 29" City Council Meeting for a press conference announcing the re-introduction of the “Keeping the Promise” Ordinance. The Ordinance would provide over 12,000 families access to affordable housing without drain on the city’s budget by strengthening City Council oversight of the Chicago Housing Authority to ensure accountable use of CHA’s stockpiled funds and future revenues. 23 Aldermen have committed to sponsor the Keeping the Promise Ordinance when re-Introduced. If passed, the Keeping the Promise Ordinance would require CHA to report quarterly to the City Council Committee on Housing and Real Estate; replace currently standing public housing units on a ‘one-for-one basis in future redevelopment or conversions; issue binding replacement housing plans before selling or swapping vacant CHA land where replacement units were promised, ensure CHA's full use of available housing voucher funding, improve the quality of the housing voucher program and reduce segregation by strengthening the access of voucher holders to neighborhoods across Chicago. Efforts by Aldermen and community leaders to tighten the reins on the CHA have escalated in the wake of on-going revelations of serious performance problems, unorthodox accounting practices, and persistent governance deficiencies at the CHA, where Mayor Emanuel last month appointed his fifth CHA CEO in just over four years.As chronicled last summer in a report issued by government watchdog group Center for Tax and Budget Accountability (CTBA), the CHA failed to spend an average of $107 million annually allocated to its housing voucher program each year between FY2008-FY2012, left thousands of public housing Units vacant, and rebuilt only a fraction of promised units, accumulating over $440 million in surplus cash by the close of FY2014 with no explanation, all while constructing its financial reports in ways that made it look like the Agency was running at a sizable deficit. Further FOIA research revealed that CHA quietly re-directed an additional $147 million from its housing programs in FY2012 to prematurely Pay off CHA's remaining bond debt, and diverted $53 million from circulation in FY12-FY13 to make excess (non-required) contributions to CHA’s pension funds, which are currently funded at 103% CTBA's report, titled “A Fiscal Review of the CHA,” demonstrated that the CHA began diverting housing funds into its reserves after the U.S. Department of Housing and Urban Development (HUD) gave the CHA greater flexibility and less oversight under a federal de-regulation program called Moving To Work (MTW), which is currently slated to be extended through 2028. Following a spate of press coverage about CHA’s sizable cash reserves, and the initial introduction of the Keeping the Promise Ordinance last September, the CHA released 3,200 more housing vouchers than ever before, and in November, opened its waiting list for 21 days for the first time since 2010. 282,000 families--- nearly one in four of all Chicago households--- applied for assistance. “Keeping the Promise” Ordinance lead sponsor Alderman “Proco” Joe Moreno (1* Ward), the ‘Alderman for the embattled Lathrop Homes development states, “We have a clear and pressing justice question in front of us about whether we will choose to make our City work for those who are less fortunate or whether we will continue to neglect them even when resources abound to help. We introduced the Keeping the Promise Ordinance nearly a year ago. Another year without oversight of CHA has meant another year of families going homeless and of money senselessly piling up.” Public housing residents echo the call for swift consideration of the Ordinance in the Housing Committee, and contend that the persistent “revolving door leadership” at the CHA underscores the inadequacy of a current structure of unilateral Mayoral control and exclusion of City Council, arguing that oversight by the City Council Housing Committee will improve accountability and transparency. Community leaders such as Alphonso Jones, a resident of Judge Slater Senior Apartments--- plan to use the Press Conference to call on the Mayor to join nearly 25 committed Aldermanic Co-Sponsors in Pushing for passage of the Keeping the Promise Ordinance. “The Mayor made a lot of campaign promises that he was going to learn from his mistakes and run the city for the benefit of all residents, Not just the white or the wealthy. The Mayor's handling of the CHA will be litmus test of how serious he was about those promises. This is a prime opportunity to lead as he said he would. And we're waiting The Chicago Housing initiative (CHI) is a citywide coalition comprised of nine community based organizations fighting to amplify the voices of low-income renters to preserve, improve, and expand low-rent housing options in Chicago and advance racial and economic equity and inclusion, CHI's member organizations include: Access Living, Jane Addams Senior Caucus, Kenwood Oakland Community Organization, Logan Square Neighborhood Association, Lugenia Burns Hope Center, Metropolitan Tenants Organization, Organizing Neighborhoods for Equality: Northside, Southside Together Organizing for Power, and People for Community Recovery. ‘tHsetae Keeping the Promise INITIATIVE Problems at the CHA The Caus Deregulation |n 2000, the Chicago Housing Authority (CHA) entered into @ deregulation agreement with the Dept. of Housing and Urban Development (HUD). This so-called “Moving to Work” agreement allows the CHA to spend its roughly $1 billion in federal funding however it wants. Instead of tying money to specific programs ond performance standards, the CHA can shift money around or simply not spend it. Moreover, deregulation frees the CHA from almost all federal oversight. For the last 14 years, we've witnessed the impact of deregulation The Impact Voucher Underuse Under deregulation, the CHA can withhold from leasing any amount of vouchers it wants. As a result, since 2004, the CHA has never leased more than 75% of its federally funded vouchers. In 2013, the CHA did not lease 13,540 vouchers it received funding for. 60000 BE Leased Funded 45000 94% 100% 30000 15000 ° 2002 2003 2004 ©2005 ©2006 «2007 2008 ©2009 2010 2011 2012 2013 Public Housing Vacancies Under deregulation, the CHA is paid the same amount to operate vacant and occupied units. As a result, since 2000, the CHA has consistently underleased its public housing stock. Initially, the CHA left roughly 15,000 units vacant because they were uninhabitable and slated for demolition. But, in recent years, the CHA has kept thousands of habitable units “offline”. The 15% vacancy rate in 2013 represents roughly 3,300 units BE Leased Units Total Existing Units BE Demolished Units 40000 30000 - 20000 10000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013gayace Keeping the Promise Slow Rebuilding of Replacement Housing Under deregulation, the CHA is no longer obligated to spend federal grants earmarked for replacement housing construction. As a result, the CHA’s plan to rebuild or rehabilitate 25,000 units by 2010 is far behind schedule. At the CHA’s current rebuilding rate, it won't meet the 25,000 unit goal until 2020. In 2014, the CHA plans to only build 40 units of permanent public housing despite $30-40 million in Replacement Housing Factor grants given to the Agency annuslly for rebuilding. 880 875 851 900 76H 675 24 450 225 pe 40 ° 2007 2008 2009 2010 2001 2012 2013 2014 The Effect Enormous Resources, Broken Promises Instead of keeping its promise to house low-income Chicagoans, the deregulated CHA is building up ‘enormous reserves. Every year from 2008 to 2013, the CHA failed to spend an average of $100 million in ‘ovailable funds. At the end of 2012, the CHA had more than $650 million in its reserves. In the absence of federal and local oversight, the CHA has no obligation to keep its promise to help Chicagoans find stable homes. $1,000,000,000 $875,000,000 $750,000,000 '$625,000,000 $500,000,000Content of the Keeping the Promise Ordinance Is for Pushing an jinanc ct Subsidized Housi) “1 Compensate for the problems caused by federal deregulation of CHA by creating a local oversight structure and city standards for CHA's performance +2 Prevent further net loss of low-income housing, especially in Opportunity Communities 3. Improve housing quality in voucher program & voucher-holder access to all communities -4. Ensure full use of available housing vouchers -§. Encourage CHA to follow through on commitments to rebuild demolished public housing -6 Create safeguards against privatization and displacement during any RAD conversions Policy Change: What does this Ordinance Set Out to Do? 1. Transparency and Quarterly Reporting: CHA will report quarterly to the Committee on Housing and Real Estate on its vacant and offline housing ward-by-ward, its voucher utilization rate, its progress building replacement public housing, available funds, and the number of section 3 jobs created to help low-income families progress economically. 2. Require One-for-One Replacement of Standing Low-Income Housing Units: The Committee on Housing and Real Estate will not authorize City funding for developers to redevelop a public housing project unless the Master Plan demonstrates how all standing units CHA proposes to demolish or convert will be replaced on a one-for-one basis. nforce CHA’s Commi to Rebuild Replacement Housing: The City will not participate in land swaps of City land or approve Planned Development Applications for the disposition of CHA land until CHA produces a Replacement Housing Plan showing the location, financing and timeline for constructing all replacement housing units promised at time of demolition. Certificates of Occupancy for market units will only be released by the City as public housing units come online. If the replacement housing promised is not produced, the City has the right to recapture grant funds given to CHA/ its developer. Encourage CHA to Fully Utilize All Available Funded Vc City Council will make future funding to CHA projects conditional on CHA utilizing 97% of the funding CHA receives for its voucher program on its voucher program. Less administration costs, CHA receives enough federal funding to circulate 8,000-9,000 more vouchers than it currently circulates. We propose a phase-in of 3,000 additional vouchers/year over three years. 5, Improve Housing Quality and Voucher-Holder Access to Opportunity Communities: Increase resources for mobility counseling and strengthen voucher housing quality. 6. Create safeguards against privatization & displacement in any R.A.D. conversions: Preserve public ownership and control of public housing developments slated for Rental Assistance Demonstration (RAD) conversions and safeguard residents’ rights to return and rights to organize.CHA's Track Record Producing Replacement Housing after Demol jon Data current through CHA's 2014 MTW Report and 2015 MTW Plan Percent of Original # |Total Public Total Public Promised Name of New ofPublic | Housing | Housing | Planned | Units CHA Mixed-Finance | Alderman, | Housing | Units Units” | Construction | has actually Development Name | Demolished | Redevelopment | Ward Units | Promised | Replaced | (2016 Plan) | constructed Fiorett, 2nd ABLA 2001-2007_| Roosevelt Square | and Ervin (28)| 3,596 175 245 o 31.61% Parkside of Old Cabrini Ext) Town Burnett, 27th | 1,086 700 434 36 62.00% Henry Horner Homes, "rl Homer Extension, West Haven Park replacement Horner Annex and | 2001-2008, | and West Haven of any units Lawndale Annex | 1996-2000 Village Burnett, 27th | 1,656 _| demolished | __698 ° 149.79%| Ida B. Wells, Clarence Darrow Homes, | 2001-2011 Madden Park Homes | 2000: 2003_| Oakwood Shores | Bums, ath | 2,359 1000 305 ° 30.50% Lake Park Crescent, Jazz on Lakefront Properties | 1998-1999 | the Boulevard | Bums. 4th | 800 441 314 0 71.20% Robert TaylorHomes {2002-2007 | Legends South | Dowell, ard_| 4.415 854 305 2 35.84%] Rockwell Gardens | 2003-2006 West End | Fiorett, 2nd | 1.126 264 142 0 53.79% Stateway Gardens | 2000-2007 | Park Boulevard _| Dowell, rd _| 1,664 439 85 37 19. 36%| Cardenas Lawndale Complex and (12th) and Osten Courts 2005 Park Douglas _| Burnett (27th) | _327 100 60 ° 60.00%| No development Harold ickes Homes | 2009-2010 underway Dowell 3rd_| 1,006 412 o o 0.00%) No development LeCiaire Courts | 2009-2010 underway Munoz, 22 | 618 300 ° o 0.00% Total 18,650 | 5,282 | 2,588 94 49.00%CHICAGO HOUSIN INITIATIVE [Preserve | Create | Engage! Aldermanic Sponsors of the “Keeping the Promise” Ordinance (Listed by ward number) . Joe Moreno (1°) . Leslie Hairston (5") . Roderick Sawyer (6"") . Susan Sadlowski Garza (10") . Toni Foulkes (16") 6. Howard Brookins (21*) 7. Ricardo Munoz (22") 8. Danny Solis (25") 9. Roberto Maldonado (26") 10. Walter Burnett (27") 11. Chris Taliaferro (29") 12. Ariel Reboyras (30") 13. Milly Santiago (31°) 14. — Scott Waguespack (32"*) 15. Deborah Mell (33) 16. Carlos Ramirez-Rosa (35"") 17. Nicolas Sposato (38") 18. Michelle Smith (43") 19. Tom Tunney (44"") 20. John Arena (45") 21. James Cappleman (46") 22. Ameya Pawar (47") 23. Harry Osterman (48") AwOne Updated July 21", 2015