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Chicago Partnerships for Affordable Neighborhoods
Partnership is key to the Department of Housing in developing projects that make good business sense and contribute to the supply of affordable housing in Chicago. Please see below how you can work with the Department in creating and rehabbing properties into affordable housing for Chicago residents. Chicago Partnership for Affordable Neighborhoods (CPAN), a partnership between the City of Chicago and developers, is a tool to ensure opportunities for affordable condominiums and single family homes in market rate developments, particularly in appreciating neighborhoods, through two steps: a developer write-down and possible purchase price assistance to homebuyers. Participating developers reduce the purchase price on a percentage of the units in a market-rate development to an affordable level for buyers at 100% of Area Median Income (AMI). Developers receive $10,000 in permit fee waivers for every affordable unit provided. Developers can also obtain certain site improvements in the public way, and those developers who must go through DCAP's outside review process are eligible for a partial reimbursement of this cost. Units developed under CPAN will also be included in the Chicago Community Land Trust (CCLT) to preserve long-term affordability. Condominium developers will be required to include language regarding CCLT Restricted Resale Units in their condominium declarations.
Further information is available by contacting the CCLT. Eligible purchasers will include households with income ranges up to 100% AMI who are either first-time homebuyers or who have not owned a home within the past three years. Purchase Price Assistance (PPA) is offered to households with incomes below 80% AMI. Up to $30,000 PPA is provided to income qualified buyers. PPA is provided in the form of a deferred payment loan at 3% interest. PPA is only payable if the home is sold. Interest is waived if the home is part of CCLT. Example: Market-Rate Price | $250,000 | Developer Write Down | $ 70,000 |
Affordable Sales Price/Land Trust Unit | $180,000 | Maximum First Mortgage of Household | $164,000 | Purchase Price Assistance
(Family of 4, Household Income of $56,550, at 75% AMI) | $ 16,000 |
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Benefits to participating developers: - Permit fee waivers of up to $10,000 per affordable unit
- Increased reach to prospective buyers through the outreach activities of the Department of Housing, the Chicago Community Land Trust, and Delegate Agencies
Developers who have been granted a zoning change, City financial assistance, or who have purchased City land are not eligible for the CPAN program unless they include an additional 10% of total units over those required by the Affordable Requirements Ordinance.
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