The Center for Policy Practice
Recent Practica
Chicago Rehab Network - Winter 2006
In conjunction with the Chicago Rehab Network, Harris School students worked to assess if Chicago is a national leader in affordable housing. The practicum team compared specific characteristics in Chicago, Denver, New York, Philadelphia, and San Francisco. Across all five cities, the following factors were examined:
- the city's financial commitment to affordable housing
- specific affordable housing funding allocations
- the range of programs used and/or populations targeted for affordable housing initiatives
Students found that all cities had different demographics, city budgets, affordable housing programs, and housing budget, making simple comparisons difficult. The analysis emphasizes city level funding rather than federal or state funding as those sources are usually determined by formulas.
Students determined that overall Chicago is competitive with the comparison cities. In some instances, Chicago is actually a leader in affordable housing, but has room for improvement in others. Students noted that they faced a unique challenge when comparing the programs in different cities as each city has its own housing needs, priorities, and programs. Findings included:
- Chicago is in line with the national average for affordable housing need. The national average share of renters (homeowners) paying 30 percent or more of their income towards housing costs is 38 (27) percent, and Chicago's figures are nearly identical. New York, Denver, and Philadelphia are all above the national average.
- Chicago's housing budget is 1.4 percent of the city's total budget. Total housing budgets for all five cities ranged between 1.1 and 2.7 percent. Chicago's housing budget is the median of the sample.
- Chicago has emphasized development of affordable rental units, including subsidy and rehabilitation, which targets the city's greatest need. New York and San Francisco also have plans that focus on development of rental units rather than homes for purchase.
- All five cities have programs that generate funding for affordable housing needs. For example, New York, Philadelphia, and San Francisco have dedicated city revenue to fund affordable housing initiatives. Similarly, Chicago's Downtown Density Bonus program works to increase the number of affordable housing units in the downtown area while the city's Community Land Trust guarantees that currently affordable units will remain affordable in the future.
Students recommended that Chicago (and the four comparison cities) continue creating programs that would generate reliable annual revenue for affordable housing. One option is to utilize federal funding, which New York has done through its Liberty Bond program. Cities should also consider using local legislation to help establish reliable funding streams not subject to the yearly city budget appropriations process. San Francisco aggressively uses legislation to provide reliable funding which otherwise would have gone to the city budget.
Current Harris School Students
View the full report text and presentation slides.
