The Chicago Sun-Times has a story about yet another example of how Chicago abuses Tax Increment Financing as a slush fund for Mayoral and Aldermanic friends and donors. This time it's about so-called "affordable" housing around the Maxwell street destruction ... er ... UIC redevelopment.
Another recent TIF atrocity was handing money to the "blighted" building formerly known as Sears Tower. For a sampling of past TIF abuse, see the Reader's TIF archive.
Beyond the now-familiar process of using public power and resources (TIF, zoning changes, etc.) to make powerful friends rich, the Suntimes finally uses some ink on the question NA4J folks have been asking for over a decade:
"Affordable" for whom????
The key basic questions on all public policy proposals should be:
* who benefits?
* who pays?
* are there other ways to achieve stated goals?
In the case of TIFs and redevelopment, the system is rigged to favor insiders, liek the people that buy "affordable" housing as an investment and them flip them for easy, politically-generated profit. Like the woman that made $29,000 without even moving into a subsidized townhome (she already owned two). The flippers made an average profit of $63,000.
Beyond the question of the politically connected gaming the system is the broader policy question of "affordable to whom"? Many gentrifying development deals include some kind of "affordable" component to alleviate community opposition. these so-called 'affordble' units are key aspects of why the deals are supposedly in the public interest.
But housing advocates have been arguing for decades that the city uses "affordability definitions that defy any logic.
For example, to qualify for 'affordable' units at University Village, a 4-person family's income must be below $75,000 per year -- which is considered 'low income' if one uses the metro region figures. Costs -- rent or purchase prices -- are not based on one's income, but on a formula based on the median income -- of the metro region.
The median household income (regardless of household size) in the city of Chicago was about $45,000 in 2007.
Using the formula based on the metro region means that many so-called 'affordable' units are priced for residents with the highest 15-20% of incomes.
The TIF reform referenda that passed overwhelmingly in sample precincts emphasize that housing produced should be affordable to households below that community's median income.
May 16, 2009
May 13, 2009
National Jobs Campaign still needed
NA4J was one of the many groups pushing for passage of the massive Obama "American Recovery and Reinvestment Act" (aka the stimulus bill), despite misgivings about the misguided corporate tax breaks. For info on the human needs benefits of $800 Billion package, see here.
According to the Obama Administration, the stimulus bill will create or save 3 million jobs. That's vitally important in the worst economic crisis in 50 years, but not nearly enough.
Even if the plan "works" as well as proponents predict (and there are questions about how much of the stimulus will reach into communities that are most in need), the economy will still be 4 million jobs short of what is needed to maintain the pre-recession unemployment level (which was still too high).
As many testified to the Congressional Progressive Caucus on May 12, low income and working people have been experiencing an economic crisis for years, long before the crisis hit the bankers.
Another Bailed-Out Bank Sells Out Workers
Hartmarx Workers Vote to "Sit In" to Save Their Jobs: TARP Recipient Wells Fargo Threatens to Close Obama Suit Maker Factory & Layoff Workers Despite $25b Bailout
500 Hartmarx Workers Joined by Illinois Rep. Phil Hare, State Treasurer Alexi Giannoulias & Other State, National Leaders
On May 11, 500 workers at the Chicago-based apparel firm Hart Schaffner & Marx held a rally and historic "sit in" vote to fight for their jobs as major lender and TARP fund recipient Wells Fargo & Co. pushes for a bankruptcy closure of the facility.
"Everyone at the plant is worried about their future. It all hinges on Wells Fargo. They have to do the right thing and allow this company to be reorganized--so jobs can be saved," explained Ruby Simms, a 32-year veteran of the Hart Schaffner & Marx factory in Des Plaines, IL.
The workers voted in favor of a "sit in" style action, which means that if Wells Fargo or a buyer tries to begin liquidation or close the factory, the workers will respond by physically remaining at their job site.
The struggle of the Hartmarx workers mirrors that of the 250 Republic Windows and Doors workers who saved their own jobs last December when Bank of America tried to shutter their doors. State and national leaders are increasingly standing up for Hartmarx workers, members of the union Workers United (an SEIU affiliate), and slamming Wells Fargo-a $25 billion taxpayer bailout recipient-for shortsightedly refusing to invest in U.S. companies and workers.
Illinois State Treasurer Alexi Giannoulias has vowed, "Unless the company remains open, [Wells Fargo] will not be doing business with the state of Illinois any longer."
"Wells Fargo has received $25 billion in taxpayer assistance through TARP. In other words, the workers Wells Fargo may throw out on the street have been subsidizing its operations during these tough economic times. So much for returning the favor," said Member of Congress Phil Hare, who also worked in the men's clothing industry as a cutter for 13 years.
May 10, 2009
Include housing in state capital budget
Every State Senator is RIGHT NOW being asked to set priorities for the state's capital budget.
The Governor's plan only allocates 1/10th of 1% of the $26 Billion capital plan for affordable housing.
Please take 15 seconds ** RIGHT NOW ** to click the link below and send a short email to the Senator Steans, asking for at least $500 million over 5 years.
http://citizenspeak
Housing is just as important part of our state's infrastructure as bridges and roads.
By providing new resources for the development and rehabilitation of affordable housing, our state will be creating jobs, generating new revenue, and creating an infrastructure of opportunity for the hundreds of thousands of people in our state that need safe, decent, affordable housing.
All it takes is two (count 'em -- 2) clicks of the mouse.
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