Fifty-Eight New Affordable Rental Units Approved for Auburn Gresham
City Council approved a measure today authorizing the issuance of up to $6 million in multi-family loans or grant funds for the creation of 58 new affordable rental units in Auburn Gresham, an INVEST South/West community. Today’s measure also authorizes the issuance of up to $18 million in TIF funds, and up to $25 million in Tax-exempt Housing Revenue Bonds for the benefit of Evergreen Imagine JV LLC or one of its affiliates, or an entity acceptable to the DOH Commissioner, as well as convey seven City-owned lots to developer Evergreen Imagine JV LLC, or their successor affiliate(s), Auburn Gresham Apartments LP, an Illinois Limited partnership, or an entity acceptable to DOH Commissioner as developer.
The total development cost is estimated at $42.6 million, with a City ask of $18 million in TIF; up to $6 million in other City soft funds, and $18.2 million in 4% LIHTC equity generated from the tax-exempt bonds. The City will also provide Donation Tax Credits to the project in the amount of $122,500, which will generate an approximate $109,025 in equity for the project. Additional sources are expected to include a first mortgage, a seller note, funding from ComEd, and a deferred developer fee.
This is the first Invest South/West project to advance to DOH application stage. It will generate 58 new construction units and $42.6 million of investment in the Auburn Gresham neighborhood. The project is anticipated to generate 17 new permanent jobs and 100 temporary construction jobs.
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