Highland Park, Illinois
Affordable Housing Trust Fund
History
The Housing Trust Fund is an outgrowth
of the process begun in the late 1990s
to update the City of Highland Park’s
Comprehensive Master Plan.
 The City Council directed the 25 year
old Housing Commission to develop an
affordable housing plan as an element
of the Master Plan.
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Context for Affordable Housing
Plan
Rising land values
 Loss of affordable units
 Limited options for people who live or
work in the community
 Increasing difficulty in
recruiting/retaining workers
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Master Plan Process
Review of best housing practices
 Recommended strategies to promote
affordable housing include:
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– Establish Housing Trust Fund
– Create a Community Land Trust
– Adopt an inclusionary zoning policy
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Flexible tools tailored to local needs
Implementation

City Council adopted the Affordable Housing
Plan as an element of the City’s
Comprehensive Plan in January of 2001
 Affordable Housing Trust Fund was
established by ordinance of the City Council
in May 2002
 Community Land Trust was created in March
2003
 Inclusionary Zoning Ordinance passed by the
City Council in August 2003
Key Issues for Highland Park’s
Housing Trust Fund
 Purpose
 Beneficiaries
 Oversight
 Program
 Funding
and Administration
Purpose
To provide a reliable and flexible
source of local funding for
activities that address the
affordable housing needs of lowand moderate-income people
who live or work in Highland
Park
Beneficiaries
HTFs target households with incomes
ranging from 30% AMI to 120% AMI
 Highland Park’s program requirements
impose income limit of 100% AMI, with
emphasis on 80% AMI or below
 Priority for people who live or work in
community
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Oversight and Administration
Highland Park’s Housing Commission is
designated as the oversight board
 It has sole responsibility for approving
funding awards – removing the funding
award from the political process
 Commission is assisted by a 7-member
Advisory Committee
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Elements of Operations
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Setting annual goals and budget
Establishing policies, funding priorities,
program requirements, procedures for
disbursing awards
Preparing notices of fund availability or
requests for proposals
Reviewing applications, approving and
monitoring awards
Evaluating HTF activities
Reporting to City Council
Fiscal management of fund
Program Examples
Housing production (new construction, rehab,
rental, ownership)
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Acquisition
Rental assistance
Home buyer assistance
Land trusts
Preservation of existing housing
Housing-related services
Capacity grants to support not-for-profits
that address affordable housing needs
Highland Park Program
Broad latitude under ordinance
 Current focus: build inventory of
affordable housing

– Fund housing development
– Set-aside in ordinance to support CLT
operations and developments
Affordability Requirements In
Highland Park

HTF-assisted units in for-sale developments
must be kept affordable in perpetuity or as
long as is legally permissible
 HTF-assisted units in rental developments
must be kept affordable for at least 25 years
 Housing Commission will ensure on-going
affordability through a grant agreement and
deed restrictions, covenants or other related
instruments that run with the property
Funding Examples
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Dedicated revenue from one or more sources
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Property tax
Real estate transfer tax
Sales tax
Fees (e.g., commercial linkage fees, inclusionary
zoning in lieu payments, condominium conversion
fees)
Other revenue sources (non-dedicated)
– General revenue allocation
– Bond issue
– Corporate or foundation support
Funding: Highland Park
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Revenue dedicated from affordable housing
demolition tax ($10,000/unit or $3,000/unit
for multi-unit buildings)
Revenue dedicated from demolition permit
fee ($500/unit)
Revenue dedicated from inclusionary zoning
in lieu payments
Revenue from sale of bond cap ($30,000
annually)
Revenue from Commission resources
(refinancing of existing properties $1,000,000 from one property and approx.
$2,400,000 from another
Use of Funds: Highland Park
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To date, Highland Park has approved
grants totaling $950,800.
– 3 operating grants for HPICLT
– 2 development proposals for family
housing from CLT
• 6-unit town home new construction
• 3-unit scattered site acquisition of existing
homes
– 1 grant for a moderate-income homeowner
rehabilitation program.
Getting Started
Resource: Center for Community
Change, www.communitychange.org
Mary Brooks was very helpful
 Adopt ordinance
 Develop program requirements and
process for use and awarding of funds
 Develop structure for program
administration
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