Lake Park Crescent in the Oakland Community Under New Ownereship
City Council today approved the issuance of up to $32 million in Tax-Exempt Housing Revenue Bonds to continue the rehabilitation work under a new owner at Lake Park Crescent. The measure also authorizes Draper & Kramer to sell the existing structures to Standard LPC Venture LP and exit the partnership. Standard LPC will purchase the buildings, assume the existing debt and complete rehabilitation work including improving HVAC systems, utility systems, building facades, and interior unit upgrades.
Lake Park Crescent is a Chicago Housing Authority (CHA) transformation transaction that was completed in 2004 and consists of 148 mixed-income rental units in a combination of an eight-story elevator building and 12 six-flat walk-ups. Of the 148 units, 109 are affordable to households at the 60% AMI and below levels, three at 80% AMI, and the remaining 36 units are unrestricted market-rate apartments. Unit sizes range from one- up to three bedrooms, with the development offering 35 one-bedroom, 76 two-bedroom, and 37 three-bedroom apartments. In addition to the units, the development contains laundry facilities, outdoor space, and 152 parking spaces.
In addition to the $32 million in bonds, the measure also approves the assumption, partial paydown and re-subordination of the existing City of Chicago HOME loan, approval of the assumption of the existing Tax Increment Finance (TIF) note, execute a multi-family loan agreement with Standard LPB Venture LP, and designates Standard LPV Venture LP as the developer. The City’s HOME loan will run coterminous with the CHA and the Illinois Housing Development Authority’s (IHDA) existing loans. Standard will also assume the existing $1.7M TIF note as well.
Total development costs are approximately $51,305,848, and in addition to the use of tax-exempt bonds and 4% tax credit equity generated from the bonds (approximately $13,847,000 million), additional funding will consist of a CHA loan of $11.306 million, a deferred developer fee of $2.773 million, and the assumption of the remaining City loan, IHDA loan of $750k and existing reserves of $1 million. The City will have a mortgage lien position on the properties.
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