FHLB Chicago

Federal Home Loan Bank of Chicago | Community Investment eNewsletter | August 2012

Council Member Spotlight: Nancy McKenzie, Executive Director, City of Rhinelander, WI, Housing Authority

In this ‘Advisory Council Member Spotlight,’ Community First interviewed Nancy McKenzie, the executive director of the City of Rhinelander Housing Authority (RHA). RHA owns and manages 24 units financed with Low Income Housing Tax Credits and Affordable Housing Program (AHP) subsidy, and 50 units of public housing. RHA also administers 120 Housing Choice Vouchers.

Q: Some people may not think of a housing authority as a developer, yet RHA used the FHLBC competitive Affordable Housing Program (AHP) and other complex financing sources for the adaptive reuse of a historic elementary school into rental housing. What would you tell other housing authorities that are considering developing affordable housing?

A: If housing authorities want to stay viable and competitive in their communities, it is time to start thinking outside of the traditional “housing authority box.” Since the Capital Funding Program’s funding levels continue to decrease with the U.S. Department of Housing & Urban Development (HUD) as well as our inability to add public housing stock to portfolios, development with (Low Income Housing) Tax Credits and AHP is the best option for housing authorities to maintain/improve current properties, add new developments, or consider adaptive reuse of an existing building. For the Rhinelander community, RHA partnered to save a landmark in our city as well as provide incredible housing opportunities for our residents.

Q: Housing authorities often serve the most vulnerable individuals and families. How has the RHA been able to maintain this critical ‘safety net’ in spite of funding reductions and program eliminations?

A: Honestly, it has been difficult to watch our housing authority serve fewer families than we did 11 years ago in the Housing Choice Voucher program. RHA staff makes an effort on a monthly basis to spend every dollar available on rental assistance. The need never leaves a community; we as housing authorities have to adapt to the continued changes in funding availability.

One simple answer was to partner with area agencies that provide similar services we can no longer offer. Our staff does more “one-on-one” with the families we serve, making sure that if a referral is needed the call will come from the staff and the family together. RHA staff has learned there is no quick fix to the situation; we do our best to provide the best that we can with the resources we have available.

Q: Why is the word ‘choice’ in Housing Choice Voucher so important?

A: In my opinion, the Housing Choice Voucher program is one of the most flexible rental assistance programs in the United States. The program allows for the voucher holder (family) to make the decision on where they will live in a community. The choice is not limited to a specific building or area within a city. Along with the housing location, families can also choose communities that potentially could offer better opportunity in employment and/or education for children as well as adult family members. Families are given the opportunity to change the course of their futures by making choices to break the cycle of poverty. The Housing Choice Voucher program’s flexibility allows for those choices.

About the Community Investment Advisory Council

The Community Investment Advisory Council of the FHLBC consists of representatives from organizations actively involved in providing or promoting affordable housing or lending in the District. They’re charged with advising FHLBC on ways in which it can better carry out its housing finance and community investment missions.

Federal Home Loan Bank of Chicago
200 East Randolph Drive Chicago, IL 60601 www.fhlbc.com	Copyright © 2012, Federal Home Loan Bank of Chicago. “Downpayment Plus,” “DPP,” “Downpayment Plus Advantage,” and “DPP Advantage” are registered trademarks of the Federal Home Loan Bank of Chicago.

This newsletter contains forward-looking statements which are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as "anticipates", "believes", "expects", "could", "plans", "estimates", "may", "should", "will," or their negatives or other variations on these terms.We caution that, by their nature, forward-looking statements involve risk or uncertainty, that actual results could differ materially from those expressed or implied in these forward-looking statements, and that actual events could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, the risk factors set forth in our periodic filings with the Securities and Exchange Commission, which are available on our website at www.fhlbc.com. We assume no obligation to update any forward-looking statements made in this newsletter.