Preservation of Existing Affordable Rental (PEAR) Pilot Program
The Preservation of Existing Affordable Rental (PEAR) program refinances private sector debt on residential properties with six or more units, ensuring at least 20 percent of the units will be affordable to tenants earning up to 80 percent of area median income over a 30-year term. The refinanced portion of the loan will have a zero percent interest rate.
The program was initially administered by the Department of Planning and Development, but is now administered by the Department of Housing with funding provided by the City’s Affordable Housing Opportunity Fund.
Sources
Last updated: March 11, 2025
Program details
City: Chicago-Naperville-Elgin, IL-IN-WI Metro Area
Program geography: City, Targeted
Entities involved: City Government, Non-Profit Housing Developer
Market Category: High Cost Market Resources
Tool Category: Support for-profit Owners - Buy Rehab and Operate Existing Buildings, Tools for Mission Driven Owners
Tool Description: Refinancing Tool
Year started: 2018
Building type: 6+ Units
Target tenants: at or below 80% AMI
Affordability restrictions: Yes. At least 20 percent of the units will be affordable to tenants earning up to 80 percent of area median income over a 30-year term
Funding description: Program is funded by the City of Chicago’s Affordable Housing Opportunity Fund.
Funding sources: City Funding