June 12, 2019

City Assistance Would Enable Final Phase of Parkside of Old Town Project

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Nearly 100 affordable and public housing units would be constructed on the Near North Side through financial measures introduced to City Council today by Mayor Lori E. Lightfoot.

Proposed as the final phase of the Parkside of Old Town mixed-income development, the units would be located within townhomes, three-story walk-ups and a mid-rise building planned for the 500 to 700 blocks of West Elm, Hobbie and Oak streets.

Parkside of Old Town was started in 2006 by Parkside Associates LLC on a portion of the former Cabrini Green public housing site. The $59 million final phase, part of the Chicago Housing Authority’s (CHA) “Plan Forward” initiative, is planned to include 54 units for CHA tenants, 44 affordable units and 36 market-rate units. Sizes would range from studios to four bedrooms. The project would create 140 temporary construction jobs and 11 permanent jobs.

City financial support would include up to $45 million in mortgage revenue bonds, $21 million in Tax Increment Financing (TIF) assistance, $15.8 million in Low Income Housing Tax Credit equity, $2.7 million in donations tax credit equity, and a $2 million multi-family loan.

Other funding would include a $15.7 million CHA loan, $2.5 million in donations tax credit equity from the Illinois Housing Development Authority, an $8 million private mortgage loan, and a $417,000 ComEd utility grant.

Parkside Associates LLC consists of Holsten Real Estate Development Corp. and the Cabrini Green LAC Community Development Corp. To date, the Parkside of Old Town project has created 175 public housing units, 148 affordable units and 269 market rate units.

Details about additional TIF-financed projects are available on the City’s interactive TIF portal.

 

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