High Cost Market Incentive

High rents often prevent low income families from thriving in areas closer to jobs, quality schools, and amenities. The Preservation Compact created a new $34 million low-cost fund to encourage building owners to include at least 20% affordable units in buildings to house low-income households in high cost, strong neighborhoods. Owners can use the fund to buy or refinance buildings. The uniquely structured Fund allows for a speedy purchases or refinance for both for-profit and non-profit developers, and helps eliminate the need for scarce public subsidies for capital.

The Fund was launched in late 2018, and has financed 383 units, including 84 affordable units. Buildings are located throughout the region, including in Evanston, Hyde Park, Oak Park, Beverly, and Hermosa.