Building an Equitable Chicago • October 7, 2025

How to Finance Small-Scale Equitable Development Projects

by Molly Heyen

Introduction

For many new equitable developers, financing is the biggest hurdle between vision and reality. Traditional funding models often favor large-scale developments with established track records, leaving smaller, community-focused projects struggling to find support. The good news: Chicago offers a growing number of tools and partnerships to help small-scale developers access capital while keeping community goals front and center.

1. Understanding the Funding Landscape

Equitable development often relies on layered financing—a mix of private loans, public incentives, and mission-driven investments. Each layer serves a purpose: some fill gaps, others reduce risk, and together they can make projects that seem impossible suddenly viable.

Common funding sources include:

Community Development Financial Institutions (CDFIs): Provide flexible loans and technical assistance for mission-aligned projects.
City and State Grants: Chicago’s Department of Planning and Development (DPD) and the Illinois Housing Development Authority (IHDA) offer programs to encourage neighborhood reinvestment.
Tax Incentives: Tools like Cook County’s special assessment incentives can reduce operating costs by lowering property taxes for a set period.
Private Capital with a Mission: Local investors, foundations, and social impact funds increasingly want to back projects that blend financial return with community benefit.

2. Scaling Appropriately

Small-scale developers often thrive when they start with manageable projects—such as renovating a mixed-use building or converting vacant lots into active community spaces. Smaller projects build credibility and a financial track record, making future financing easier to secure.

Tips for scaling smartly:

Choose properties that can be phased or expanded over time.
Keep renovation budgets realistic; focus on high-impact improvements.
Partner with local tenants or operators who share your mission.

3. Building the Right Financial Team

A strong advisory team is key to finding and structuring financing. This includes:

A commercial real estate agent who understands both zoning and incentive programs.
A lender or CDFI familiar with community-based projects.
A financial consultant to help package multiple funding sources.
An attorney with experience in public incentives and compliance.

4. Leveraging Partnerships and Community Support

Partnerships can unlock new funding opportunities. For example, collaborating with a nonprofit, local business improvement district, or anchor institution can make your project more attractive to funders who prioritize community impact.
Community backing also helps strengthen grant and loan applications—funders want to see local demand and trust.

5. How I Can Help

My role is to help new equitable developers identify funding pathways and connect with professionals who understand this work. Whether that means researching incentive eligibility, introducing you to CDFIs, or helping assemble the right advisory team, I help bridge the gap between big ideas and feasible projects.

Conclusion

Financing small-scale equitable development is rarely simple, but it’s far from impossible. With the right mix of creativity, partnerships, and strategic guidance, developers can bring projects to life that strengthen communities and generate long-term value.

If you’re exploring your first equitable development project in Chicago and need help identifying funding resources or potential partners, I’d be happy to guide you through next steps.

Building an Equitable Chicago • September 23, 2025

Case Studies in Equitable Development: Lessons from Chicago and Beyond

by Molly Heyen

Introduction

One of the best ways to understand equitable development is to see it in action. Case studies showcase how mission-driven projects have addressed challenges, leveraged partnerships, and created lasting community impact. While no two developments are identical, there are common threads and lessons that can guide new developers in Chicago.

1. Englewood Square – Chicago, IL

This retail hub, originally anchored by a Whole Foods (now replaced by a local grocer), was designed to bring healthy food options and jobs to a historically disinvested neighborhood.
Takeaways:

Aligning with community needs builds trust and ensures utilization.
Large anchors can help attract additional tenants, but sustainability requires a mix of local businesses too.

2. The Hatchery – Chicago, IL

A food business incubator that provides shared kitchen space and business support for local entrepreneurs.
Takeaways:

Public-private partnerships can be powerful when paired with mission alignment.
Supporting entrepreneurs strengthens long-term economic resilience in communities.

3. Pilsen Arts Community House – Chicago, IL

An adaptive reuse project that created affordable housing alongside artist studios and community gathering space.
Takeaways:

Projects that preserve neighborhood culture can balance growth with identity.
Mixed-use models create both social and financial value.

4. Beyond Chicago: Dudley Street Neighborhood Initiative – Boston, MA

A community-led development effort that used land trusts to protect affordable housing and prevent displacement.
Takeaways:

Community-driven ownership models can safeguard affordability.
Transparent, inclusive planning fosters lasting resident support.

5. What These Examples Teach New Developers

Strong community engagement from day one is non-negotiable.
Projects succeed when they meet both immediate needs (jobs, housing, food access) and long-term goals (cultural preservation, economic mobility).
Partnerships—whether with nonprofits, local businesses, or public agencies—are essential to building capacity and resources.

How I Can Help

My role is to connect equitable developers with the right information and networks to replicate these lessons. Whether it’s sourcing case studies for inspiration, connecting with community leaders, or researching partnership opportunities, I can help developers learn from what’s worked elsewhere and adapt it for Chicago’s unique neighborhoods.

Conclusion

Case studies are not roadmaps, but they offer invaluable insight. By studying successes and challenges in equitable development, new developers can move forward with strategies rooted in real-world experience.

Navigating Foreclosure in Chicago • September 19, 2025

Selling Your Home Before Foreclosure

by Molly Heyen

When mortgage payments become overwhelming, some propertyowners believe foreclosure is inevitable. But in many cases, you still have time to take control by selling before the foreclosure process is complete.

This option can allow you to avoid the long-term financial consequences of foreclosure, protect your credit as much as possible, and in some situations, even walk away with equity.

How It Works

If you’re behind on payments but still have equity in your home, selling the property on the open market may be the best path forward. With the help of a real estate professional, you can list your property, attract buyers, and use the sale proceeds to pay off your mortgage.

The key is acting quickly. Once foreclosure proceedings advance, your time frame and options become limited.

Benefits of Selling Before Foreclosure

Protect Your Credit: A traditional home sale has less impact on your credit than a foreclosure.
Preserve Equity: If your property value is higher than your loan balance, you may keep any remaining equity after the sale.
More Control: You have a say in the process, rather than leaving the decision to the bank.
Fresh Start: Selling allows you to move forward without the weight of a foreclosure on your record.

What to Keep in Mind

Timing matters. The sooner you act, the more options you’ll have.
If you owe more than your home is worth, a short sale may be necessary instead of a traditional sale.
Working with an experienced agent who understands distressed property sales can help ensure a smoother process.

Final Thoughts

Selling your property before foreclosure is not always easy, but it can be one of the most empowering choices available. It helps you move forward on your own terms and often with far better outcomes than letting the foreclosure process run its course.

If you’re wondering whether selling before foreclosure is the right path for you, I’d be glad to walk you through the process and help you evaluate your options.

Contact me today to start the conversation.

Building an Equitable Chicago • September 16, 2025

Measuring Impact in Equitable Development

by Molly Heyen

Introduction

Equitable development is about more than bricks and mortar—it’s about creating meaningful, measurable benefits for the communities where projects take shape. But how can developers know if their work is truly making a difference? Measuring impact requires both qualitative and quantitative benchmarks to capture the full picture of success.

1. Why Measuring Impact Matters

Demonstrates accountability to stakeholders, funders, and community members
Strengthens the case for future funding or partnerships
Helps refine strategies for long-term community benefit
Ensures that projects don’t just deliver financial returns, but also create social and cultural value

2. Key Metrics to Track

Impact measurement can vary depending on the project, but some common metrics include:

Economic Outcomes: Jobs created, contracts awarded to local businesses, increased property values without displacement
Housing Outcomes: Number of affordable units built or preserved, reduced cost burden for residents
Social Outcomes: Access to services, new community spaces, increased neighborhood safety
Cultural Outcomes: Support for local artists, preservation of neighborhood identity
Environmental Outcomes: Energy efficiency, green space, sustainable building practices

3. Tools for Measuring Impact

Surveys and Interviews: Gather feedback directly from community members
Community Benefit Agreements (CBAs): Outline commitments and track delivery
Third-Party Evaluations: Provide credibility through independent analysis
Impact Dashboards: Visualize key performance indicators for ongoing monitoring

4. Challenges in Measuring Impact

Not all outcomes are easily quantifiable
Community needs and expectations may shift over time
Data collection requires time, trust, and resources
Balancing immediate results with long-term impact is complex

5. How I Can Help

As a real estate advisor, I help equitable developers identify realistic impact goals and connect them with partners who specialize in measurement. Whether that means introducing evaluation experts, structuring reporting frameworks, or facilitating community feedback loops, I ensure impact remains central to the project’s success.

Conclusion

Impact measurement is not about checking boxes—it’s about ensuring equitable development lives up to its promise of meaningful, lasting community benefit. By setting clear benchmarks, collecting data, and listening to community voices, developers can measure success in ways that go beyond profit.

If you’re considering a project and want to ensure impact stays front and center, I’d be glad to explore strategies with you.

Navigating Foreclosure in Chicago • September 11, 2025

Understanding a Deed in Lieu of Foreclosure

by Molly Heyen

When facing the possibility of foreclosure, homeowners often look for options to minimize long-term financial damage. One alternative that sometimes comes up is a deed in lieu of foreclosure.

This option allows you to voluntarily transfer ownership of your property back to the lender, effectively handing over the keys and walking away. While it’s not the right choice for everyone, it can provide a path forward without the formal foreclosure process.

How Does a Deed in Lieu Work?

With a deed in lieu of foreclosure, you and your lender agree that you will give up ownership of your home in exchange for being released from your mortgage obligations. Once the deed is signed over, the lender owns the property and foreclosure proceedings are avoided.

Because this is a legal agreement, lenders usually require you to attempt other options first, such as a loan modification or short sale. They will also typically check for any other liens on the property, as those can complicate approval.

Potential Benefits

Avoid Foreclosure: Like other alternatives, it helps prevent the lengthy and damaging foreclosure process.
Debt Relief: In many cases, the lender forgives the remaining balance, though not always.
Less Stressful Process: Compared to foreclosure, the process can be quicker and more straightforward.

Potential Drawbacks

Credit Impact: Your credit will still take a hit, though typically less severe than foreclosure.
Loss of Equity: You walk away without compensation, even if you’ve built equity.
Possible Tax or Deficiency Issues: Any forgiven debt could have tax implications, and in some cases, lenders may still pursue a deficiency balance.

When to Consider a Deed in Lieu

This option may be worth exploring if:

You’re unable to qualify for a loan modification.
You’ve tried to sell the property, but a short sale wasn’t successful.
You want to avoid the uncertainty and stress of foreclosure proceedings.

Final Thoughts

A deed in lieu of foreclosure can be a way to move on without the full impact of foreclosure, but it’s not a decision to make lightly. Every homeowner’s situation is unique, and the right option depends on your financial circumstances and long-term goals.

If you’re exploring foreclosure alternatives, I can help you evaluate your property options and connect you with trusted legal and financial professionals to guide you through the process.

Contact me today to discuss your next steps.

Success Stories • September 10, 2025

From Packed Estate to Full-Price Sale: How a Thoughtful Strategy Delivered a Smooth Outcome in Back of the Yards

by Molly Heyen

Image of the building with the adjacent lot

$225,000 | Mixed-Use | 5209 S Halsted, Chicago, IL

Challenge

When an estate needed to sell a mixed-use property in Chicago’s Back of the Yards neighborhood, they faced an uphill climb. The building—a former hardware store with three apartments—was packed to the brim. The store was still full of unsold inventory, while the apartments contained rooms of personal belongings.

On top of that, a large, weathered sign left behind by the previous broker created an eyesore the estate didn’t want to deal with. The heirs were hesitant to spend time clearing out the property and were hoping for a solution that would minimize effort while still producing results.

Action

The first step I encouraged was securing an appraisal. For estate sales, this is invaluable—it gives beneficiaries an unbiased, third-party view of fair market value, helping prevent disagreements among heirs.

To explore all options, I presented multiple strategies: hosting an estate sale to clear out items, bringing in an auction company for consultation, or listing directly as-is. After careful consideration, the estate chose the simplest path: list the property on the MLS, contents included.

To make the process more manageable, I rolled up my sleeves and worked alongside the family to remove the massive broker sign that had been left behind. Small steps like this not only helped improve curb appeal but also built trust and momentum in what could have been a stressful process.

Results

The property went under contract in just two weeks, selling for full asking price in an all-cash deal. For the estate, it was the smoothest possible outcome—quick, straightforward, and without the burden of clearing out the entire building.

The buyer, a seasoned buy-and-hold investor, recognized the potential in Back of the Yards. By mid-2021, the median sales price for commercial buildings in the area was $145,000. By June 2025, it nearly doubled to $285,000. His strategy of holding the property positions him well for long-term gains while he maintains the property and keeps it in compliance.

For the community, this sale represented another step forward in a neighborhood already seeing meaningful investment. Back of the Yards continues to benefit from city-backed programs like the Neighborhood Opportunity Fund, as well as grassroots development, ensuring that properties like this remain poised for positive transformation.

“Estate sales can be overwhelming, but with the right strategy, they don’t have to be. By focusing on value, clarity, and practical options, we were able to deliver a smooth and successful outcome for everyone involved.”
— Molly Heyen

Navigating Foreclosure in Chicago • September 5, 2025

What Is a Short Sale and How Can It Help You Avoid Foreclosure?

by Molly Heyen

If you owe more on your mortgage than your home is currently worth, you might feel stuck. Selling seems impossible, and foreclosure feels inevitable. But there’s another option worth considering: a short sale.

A short sale allows you to sell your property for less than the balance on your mortgage, with your lender’s approval. While it isn’t always the easiest process, it can be a powerful way to avoid foreclosure and move forward with less financial damage.

How Does a Short Sale Work?

In a short sale, your lender agrees to accept less than what you owe on your loan. For example, if you owe $250,000 but your home is only worth $200,000, your lender may approve a sale at the lower amount.

The proceeds from the sale go directly to the lender, and in many cases, this satisfies the debt—though sometimes lenders may still pursue what’s called a “deficiency balance.” This is one reason why it’s important to work with experienced professionals and, when needed, consult an attorney.

Potential Benefits of a Short Sale

Avoid Foreclosure: A short sale prevents the long-term damage that foreclosure can cause to your credit and financial future.
Protect Your Credit (to an extent): While your credit score will take a hit, it’s usually less severe than a completed foreclosure.
More Control: Unlike foreclosure, you have the ability to list and sell your home with the guidance of a real estate agent.
Possible Debt Relief: Depending on the lender’s terms, you may be released from owing the difference.

Challenges of a Short Sale

While short sales can be beneficial, they’re not without obstacles:

Approval Takes Time: Lenders often require significant documentation and can take months to respond.
No Guaranteed Outcome: Even with a buyer, the sale may fall through if the lender doesn’t approve.
Tax Implications: In some cases, forgiven debt may be considered taxable income. This is where consulting a tax professional is essential.

Is a Short Sale Right for You?

A short sale might be a good option if:

You’re behind on mortgage payments and foreclosure is likely.
Your home’s value has dropped below what you owe.
You’re ready to move on and avoid the long-term impact of foreclosure.

Explore Your Options with Support

A short sale is a complex process, but it can also be a valuable tool for distressed homeowners. Working with a knowledgeable real estate advisor can help you navigate the steps while ensuring your interests are protected.

If you think a short sale may be right for your situation, I’d be glad to walk through the process with you and connect you with the right resources.

Contact me to explore your options today.

Building an Equitable Chicago • September 2, 2025

Risk Management in Equitable Development

by Molly Heyen

Introduction

Equitable development carries unique rewards, but like any real estate project, it comes with risks. For mission-driven developers, risks often feel more complex because they involve both financial performance and community outcomes. Understanding how to anticipate, manage, and mitigate these risks is critical to long-term success.

1. Financial Risks

Equitable projects can face funding gaps, delayed disbursements, or unexpected cost overruns. To mitigate:

Build conservative budgets with contingency funds
Secure multiple funding streams (grants, loans, and private capital)
Work with lenders or CDFIs familiar with mission-oriented development

2. Market Risks

Projects may not align with current market demand or could struggle with tenant recruitment. Mitigation strategies include:

Conducting thorough feasibility studies
Building strong community partnerships to ensure demand
Designing spaces with flexibility for multiple uses

3. Regulatory Risks

Zoning, permitting, and compliance issues can delay or derail projects. To reduce risk:

Engage local officials early
Work with legal or planning experts who understand Chicago’s development process
Stay current on policy changes affecting affordable housing, small businesses, and community investment

4. Construction Risks

Delays, material shortages, or contractor disputes can significantly increase costs. Developers can mitigate by:

Pre-qualifying contractors with a track record of delivering similar projects
Building realistic timelines
Using phased development to spread risk

5. Community Risks

Equitable development hinges on community trust. A lack of engagement can lead to opposition or underutilized spaces. To mitigate:

Hold community meetings early and often
Incorporate local voices into project design
Partner with neighborhood organizations to strengthen buy-in

6. Long-Term Sustainability Risks

Even after completion, projects may face risks tied to ongoing operations or maintenance. To safeguard sustainability:

Create realistic pro formas for operations
Explore partnerships with nonprofits or local institutions for long-term stability
Plan for future adaptability as community needs evolve

How I Can Help

My role is to help developers anticipate these risks and connect them with trusted experts who can provide specialized guidance. Whether it’s navigating zoning issues, exploring funding models, or strengthening community partnerships, I serve as a connector and advisor to help projects succeed.

Conclusion

Risk is inevitable in equitable development, but with careful planning, the right partners, and strong community engagement, developers can mitigate challenges while creating meaningful impact.

If you’re exploring a project and want to talk through potential risks and strategies, I’d be glad to help you get started.

Navigating Foreclosure in Chicago • August 28, 2025

Loan Modification Basics: What Homeowners Should Know

by Molly Heyen

When financial challenges make it difficult to keep up with your mortgage, one option some homeowners explore is a loan modification. Unlike refinancing, which replaces your mortgage with a new one, a loan modification changes the terms of your existing loan to make payments more manageable.

What Is a Loan Modification?

A loan modification is an adjustment made by your lender to the original terms of your mortgage. This might include:

Lowering the interest rate
Extending the length of the loan
Converting an adjustable-rate mortgage into a fixed rate
Adding missed payments to the loan balance instead of requiring them upfront

The goal is to reduce your monthly payment to something more affordable so you can remain in your home.

Who Qualifies for a Loan Modification?

Each lender has its own requirements, but typically, you must show that:

You’re experiencing financial hardship (such as job loss, medical bills, or reduced income)
You’re unable to afford your current mortgage payment
You can demonstrate the ability to make the modified payment moving forward

Important Things to Keep in Mind

Documentation is critical. Be prepared to provide income statements, bank records, and a hardship letter.
Approval is not guaranteed. Lenders review each request individually.
Watch for scams. Never pay upfront fees to a company offering loan modification assistance. Work directly with your lender or a HUD-approved housing counselor.

When to Consider a Loan Modification

A loan modification may be worth exploring if you want to stay in your home but need a payment structure that fits your current financial situation.

It’s important to remember that a loan modification isn’t a quick fix, and it may not be the right choice for everyone. If you’re considering it, talking with a HUD-approved counselor or your lender directly is the best first step.

You Have Options

Struggling with mortgage payments can feel overwhelming, but you don’t have to navigate it alone. Exploring a loan modification is one of several potential paths forward.

If you’d like to talk through whether this might be an option for you, I’m available to help connect you with trusted resources and walk through your next steps.

Please contact me if you’d like to start the conversation.

Building an Equitable Chicago • August 26, 2025

Creative Financing Strategies for Equitable Development

by Molly Heyen

Crowdfunding image of many people contributing money to an idea.

Introduction

Financing is often the biggest barrier for equitable developers. Traditional lending requirements can be too rigid, while community-oriented projects may not fit neatly into conventional underwriting models. Yet, creative financing strategies can help bridge the gap, making it possible to bring socially impactful projects to life.

This post explores financing tools and approaches that mission-driven developers in Chicago can leverage to move their projects forward.

1. Grants and Subsidies

Local and federal grants can provide non-repayable funds to support pre-development, construction, or operational costs. In Chicago, programs may target affordable housing, small business development, or community revitalization.

Pros: Reduces reliance on debt, strengthens community alignment.
Cons: Highly competitive, time-intensive applications, and strict compliance requirements.

2. Tax Credits

Tax credit programs such as Low-Income Housing Tax Credits (LIHTC) or Historic Preservation Tax Credits can provide significant equity.

Pros: Attracts private investors, makes otherwise infeasible projects possible.
Cons: Complex structures, requires specialized advisors, and often adds layers of oversight.

3. Community Development Financial Institutions (CDFIs)

CDFIs specialize in lending to projects that traditional banks may view as too risky. They understand community-driven models and can offer more flexible terms.

Pros: Mission-aligned, more flexible than traditional banks, strong community ties.
Cons: Interest rates may be slightly higher than conventional loans, and funding capacity may be limited.

4. Crowdfunding and Community Investment

Platforms for real estate crowdfunding and local investment pools allow communities to invest directly in developments. This not only raises capital but also builds community buy-in.

Pros: Enhances community ownership, diversifies funding sources.
Cons: Regulatory hurdles, requires strong community trust, smaller individual investments.

5. Public-Private Partnerships (PPPs)

As mentioned in earlier posts, PPPs can be powerful tools for securing resources while advancing community priorities. Creative developers can align with municipalities or anchor institutions to co-develop projects.

6. Blended Capital Stacks

Most successful equitable developments use a combination of these tools. For example:

A loan from a CDFI, paired with tax credits
A grant for pre-development costs, layered with traditional financing
Community investment supplemented by anchor institution support

How I Can Help

As an advisor, I help developers:

Research and identify appropriate funding programs
Connect with CDFIs, grant programs, and impact investors
Build relationships with professionals who specialize in tax credits and layered financing
Evaluate which financing strategies best match their project’s scope and mission

Conclusion

Financing equitable development requires creativity, persistence, and the right partners. By blending traditional and innovative approaches, mission-driven developers can secure the capital needed to bring community-focused projects to life.

If you’d like guidance on exploring financing options for your project, I’d be happy to help you get started.

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