Bond Inducement Will Preserve 30 Affordable Units in Lincoln Park
An ordinance to issue up to $12 million in Tax-exempt Housing Revenue Bonds to Covent Apartments, LLC for the preservation of 30 affordable units was introduced to City Council today by Mayor Lori E. Lightfoot. The Covent was one of the first projects preserved under the City’s 2014 Single Room Occupancy (SRO) Preservation Ordinance, which was enacted to preserve SRO affordable housing within the city. The project will modernize and preserve 30 affordable units in the Lincoln Park neighborhood, where affordable housing is scarce. All 30 units will be targeted to very low-income individuals earning less than 50% of the Area Median Income (AMI), with 25 of the 30 units targeted to households earning no more than 30% of AMI. All units will receive rental subsidies from the Chicago Housing Authority (CHA).
Total project costs are roughly $20,500,000. In addition to the use of tax-exempt bonds and the 4% tax credit equity generated from those bonds, other funding will consist of City of Chicago multifamily loan funds, a first mortgage, a sponsor loan, grants from the Federal Home Loan Bank and ComEd, and equity generated from historic tax credits.
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