International Homes
International Homes
The International Homes in Uptown represent a distinct niche in the struggle for low-cost housing—affordable homeownership. Built in the early 1990s, the 1200 square-foot townhomes on Kenmore, Winona, and Winthrop were developed as a part of the New Homes for Chicago program, an affordable homeownership project that teamed with neighborhood organizations to support construction through lot grants and subsidies. The seeds of this project were planted by local community organizations and mutual aid groups who represented an immensely diverse array of neighborhood residents, hence the name “the International Homes.” In 1995, the Chicago Tribune reported “residents are Ethiopian, white American, African-American, Native American, Mexican, Bolivian, Laotian, Vietnamese, Chinese, Cambodian, Nigerian and Pakistani.”
Local community organizations, such as the Vietnamese Association of Illinois and Voice of the People, convened during the late 1980s around the issue of shrinking affordable housing of all types (rental+ownership) in Uptown, recognizing that they shared a common goal and could more effectively campaign as a coalition. The International Homes represent just one of many efforts to create affordable homeownership opportunities in Uptown, a strategy of addressing the shortage of low cost housing that has grown since the spread of gentrification to the neighborhood during the 1980s. We want to use this unique and inspiring story of cross-cultural collaboration as a jumping off point for a wider discussion of affordable homeownership in the neighborhood.
By the late 1980s, gentrification had spread to Uptown and the newly elected Alderwoman Helen Shiller was doing her best to address the problems of rising rents and real estate speculation. Shiller, an ally of then-mayor Harold Washington, was willing to go toe-to-toe with developers in the fight to keep the neighborhood affordable, and she pressed the issue within her ward and in the city council.
Shiller, who had been elected with Washington’s endorsement in 1987, eventually garnered the mayor’s support for a plan to convert 17 empty Uptown lots into affordable, owner-occupied 3-flat homes. She had recruited developer Elzie Higginbottom to build the homes, which would have been built on the tax delinquent lots (acquired by city from the county through a ‘no cash bid’ tax reactivation system). The plan was to sell these homes for somewhere between $70-80k to first-time homebuyers, teachers and other local workers, with the idea that they could be made further affordable by the ability of the owners to rent out the other two units. Furthermore, local families that applied would would be given priority consideration. However, the Cook County Board tax sub-subcommittee—responsible for providing a preliminary review of the transfer—rejected the proposal and neglected to send it to the wider Cook County Board for consideration.
This decision was influenced in part by the fact that Uptown developer Randall Langer had submitted a cash bid on the properties, the equivalent of their accumulated back taxes or about $114,000. Langer, who purchased nearly 500 apartments in Uptown over the course of the 1980s and was known to raise rents significantly in his buildings, lobbied heavily to acquire the 17 vacant lots. He was successful in the end, spoiling Shiller’s effort at expanding affordable homeownership in the neighborhood. The inability to get the 3-flat project off the ground was in part the result of bad luck—really bad luck. Harold Washington’s sudden death on November 25, 1987—the day before Thanksgiving—immediately put the project in jeopardy. In the political power shuffle that ensued, proponents of the plan Shiller and fellow Uptown activist and Washington advisor Slim Coleman saw their clout diminished as Chicago’s Democratic machine, briefly interrupted by the Washington coalition government, began to churn anew. Later, Shiller helped orchestrate the CHA purchase of a number those lots then owned by Langer for the construction of scattered site public housing in Uptown. Getting this scattered site housing built was critical—however, the CHA had to pay market-rate for the property, allowing Langer to make a killing in the deal at the expense of taxpayers.
Following the collapse of the 3-flat plan, Shiller and others around Uptown had to refigure how they would respond to the effect of gentrification on affordable housing in the neighborhood, both rental and homeownership. The International Homes grew out of one approach, a partnership with the city’s New Homes for Chicago program, a project which started in 1990 that focused on building affordable new homes around the city. The New Homes program is still around today, although it has gone through some changes since the 90s. Another method for improving affordable homeownership opportunities was to get affordable units built into new condo construction. Alderwoman Shiller made it a practice to demand that low income units were built into new condo construction in Uptown. These efforts were helped along by Chicago Partnerships for Affordable Neighborhoods (CPAN) in the early 2000s, and by the Affordable Requirements Ordinance (ARO), passed in 2006. CPAN was a system that provided incentives to developers for including more affordable units in new construction, and the ARO was the first measure that required builders to include a certain number of low income units in their developments (beginning with either 10 or 10% of the units, whichever was greater).
Listen to Eric Bulter, current Vice President of the International Townhomes Association, discuss how he and his wife heard about the development.
Voice of the People, the longstanding affordable housing manager and advocacy group emerged as the neighborhood developer for the project. Through the New Homes program, Voice was able to get the land to build the homes for free from the city, and the buyers would be eligible for a subsidy of up to $20,000. The homes were geared towards working families, and prospective buyers had to meet income requirements in order to qualify for the mortgage. Eligible applicants then entered a lottery—there were separate lotteries for each community group—and those who were selected had the opportunity to buy one of these low-to-moderately priced homes. The homes sold for between roughly $56,000 and $76,000 (approx. $115-150k today), depending on the income of the buyers, which generally ranged from about $18,000 to $40,000.
In spite of being targeted towards low and moderate income buyers, some families had to scrape together money and take on second jobs to qualify for the mortgages. The agreement through which raffle-winners were given an opportunity to buy the homes stipulated that they, the buyers, would not be able to sell the homes for a profit for five years, in an effort to preserve their affordability. However, after those five years expired, there was little stopping the homes from being bought up by investors and/or sold for a profit. This push and pull between personal homeownership economics and sustainable affordability is one of the challenges of affordable homeownership developments, alongside the importance of home equity in our financial system.
Eric tells how buying an affordable home made all the difference for his family as they navigated a housing market beset by luxury condo conversions in the 1990s.
The International Homes represent a victory for local community and mutual-aid groups. By forming a cross-cultural coalition, disparate groups were able to secure the necessary funding and know-how to effectively respond to the needs of their members. Unfortunately, while projects like the International Homes made a huge difference for those who were able to move into these developments, their overall impact on the affordable housing stock in Uptown, and the rest of the city, has been minor. In 1997, the New Homes program was revised and the relative price of the homes rose as the project shifted to target more moderate income buyers. This was in part due to the use of more expensive construction materials, a decision made to try to distinguish the homes from other low-cost developments like Scattered Site housing.
Copyright 2018 Dis/Placements Project
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