City Council Passes Multifamily Loan Agreement for Casa Durango LP
City Council today approved the authorization to execute a multi-family loan agreement with Casa Durango LP, and designate Casa Durango LP as the developer for the new construction of two elevator buildings in the Pilsen neighborhood. Together, the new developments will house a total of 53 affordable, rental one- to three-bedroom units, tenant community space and tenant storage, 37 parking spots and space for bicycle storage.
The building to be located at 1850-54 S. Racine will be a five-story elevator structure that will house 37 units, tenant community space and interior storage, laundry facilities, bike racks and 31 parking spaces. The building on Ashland will be located at 2008-12 S. Ashland Avenue and will consist of a three-story elevator structure that will house 16 units, tenant community space and interior storage, laundry facilities, six parking spaces and bicycle storage. Additionally, this location is considered a transit site location (TSL), as the CTA’s Pink line elevated train is approximately 1,400 feet west of the proposed site.
The total development costs are approximately $27,514,809 and in addition to the City’s $5,573,580 multi-family loan and 9% Low Income Housing Tax Credits, which will generate approximately $17,294,270 of equity for the benefit of the transaction, other funding will consist of a private loan of $1,650,000, an Illinois Housing Development Authority (IHDA) loan of $2,650,000, sponsor loan of $100,000 to The Resurrection Project, a seller’s note of $658,483 and a deferred developer fee of $518,044. The City will have a mortgage lien position on the properties.
The Resurrection Project (TRP) is a non-profit housing developer and social services organization that began as a grassroots advocacy organization with a mission to create community ownership and build community wealth. TRP started with an initial investment of $30,000 collected from concerned neighbors and area churches. Since its inception 31 years ago, TRP has developed and operates 500 forsale and rental homes/apartments, manages two daycare centers, a senior center, and various commercial spaces.
# # #