The Cook County Assessor Studies Multifamily Rental and Foreclosure

New data from the Cook County Assessor's Office shows a dramatic increase in foreclosure filings in Cook County for Class 3 and Class 9 (7+ units) multifamily rental buildings. According to Fran LeFor, the lead researcher for the study, foreclosures have increased from 78 filings in Cook County in 2006 to 300 in 2009. Over 500 Class 3 and 9 rental buildings received a foreclosure filing in 2008 and 2009, and while some percentage of loans in foreclosure are renegotiated or sold, completed foreclosures have increased from 27 in 2006 to 98 in 2009 - indicating an increase in the number of rental property owners in some state of financial distress.

Additionally, LeFor’s study found a disproportionate impact in the City of Chicago versus Suburban Cook County. While 71% of all Class 3 and Class 9 properties are located in Chicago, 86% of foreclosure filings and 85% of completed foreclosures occur in Chicago. Hyde Park, Lake, and West Townships (the south and west sides of Chicago) have the highest concentration, with 72% of all foreclosure filings and 75% of all completed foreclosures, even though these areas only contain 37% of Class 3 and 9 rentals in Cook County. In Hyde Park Township, close to one in ten rental properties has received a foreclosure filing in the past four years, and one in forty has been foreclosed.

Although foreclosure on larger buildings has the potential to directly affect a higher number of families, the report also found the number and percentage of large rental properties affected by foreclosure is significantly lower than single family homes and small rental properties with fewer than seven units. The Assessor's Office will continue to track the incidence of rental property foreclosures and its implications on the market values of these buildings.

Preservation Loan Fund is Open for Business

The Cook County Preservation Loan Facility has closed its $30.6 million fund and is officially open for business to support the acquisition and predevelopment of rental housing preservation deals. Participating banks include JPMorgan Chase, Northern Trust, MB Financial, The PrivateBank and LISC. JPMorgan is the administrative agent for the lenders, and LISC is the loan originator and underwriter.

ULI Chicago hosts Young Leader Preservation Case Study

ULI Chicago Young Leaders kicked off their 2010 programming with a case study on a creative mixed-use preservation project from Mercy Housing Lakefront’s Preservation Initiative portfolio. The case study detailed $61 million in rehab financing for building, unit, and energy efficiency upgrades at two Uptown properties - 850 Eastwood (231 multi-family units) and 4946 N. Sheridan (69 supportive housing units). Bundling the properties into one deal supported the critical rehab and preservation of 300 units of affordable rental housing.

Speakers included Jack Markowski, President and CEO of Chicago Investment Corporation, Cindy Holler, President of Mercy Housing Lakefront and ULI Urban Community Adviser, Mercy Project Manager Bobby Thapar and Vice President of Community Development Banking at Bank of America, Matthew Hickey.

Interagency Council Improves City’s HPRP Policy

The Interagency Council spearheaded a critical policy change to the City of Chicago’s Homelessness Prevention and Rapid Rehousing program (HPRP). HPRP provides temporary rental assistance for households at-risk of homelessness. At an Interagency workshop to solicit feedback on the program, owners discovered a need to adjust application timing, shifting eligibility from post-eviction to pre-eviction. The Interagency Council and Preservation Compact Partner the Shriver Center worked together with the City to shift this policy and streamline the program for at-risk tenants and owners. More information on HPRP>

HPRP and other resources were publicized at the Owners Forum on Preservation Resources on November 19th, 2009, sponsored by The Interagency Council and DePaul’s Institute for Housing Studies. With over 200 owners in attendance, panels covered topics from new public resources and energy programs to multifamily finance and best management practices. Materials, links and contacts from the conference>

Cook County Energy Savers Program a Top U.S. Retrofit Performer

In just 18 months, Energy Savers has retrofitted 3,500 apartments and other rental units in Chicago and neighboring communities, typically cutting energy consumption by 30 percent. The program has more than 2,500 units in construction and is on track to complete more than 8,500 retrofits by the end of this year, making it one of the country’s largest and most successful programs for retrofitting existing multi-family, rental housing. Read the press release>