Leland Apartments, a historic 137-unit, six-story building in Chicago’s Uptown neighborhood, will soon undergo transformation. Chicago City Council has approved the forgiveness of existing debt and the release the apartment complex from its Regulatory Agreement.   

The proposed loan forgiveness will occur via the transfer of the property to Mercy Housing Lakefront through a three-step process:   

1. Stop foreclosure/end Receivership  
2. Donation Tax Credit allocations   
3. Debt assumption and long-term financing  

The property currently provides deeply affordable housing to individuals facing or at risk of homelessness, veterans and low-income residents with complex needs. Fifty units are managed and operated by Trilogy under the Pathways Program to provide supportive services to formerly homeless residents. The 87 non-Pathways units provide housing for individuals that are at risk of homelessness. 

The current First Mortgage lender will take possession of the property through a Deed in Lieu of Foreclosure, agreed upon by Heartland Housing.