500 Affordable Senior Units to be Rehabbed in Little Village and East Garfield Park
Mayor Lori E. Lightfoot introduced an ordinance to City Council today that would cede up to $90 million of unused City of Chicago tax-exempt bond volume cap to the Chicago Housing Authority (CHA) for the rehabilitation of Albany Terrace Apartments and Irene McCoy Gaines Apartments (Albany Gaines). On the southwest side in Little Village, Albany Terrace was constructed in 1974 and includes 350 affordable senior units. Irene McCoy Gaines in East Garfield Park was built in 1964 and has 150 residential units, including 30 studios and 120 one-bedroom units. Together, the two buildings provide 500 units of affordable housing to low-income senior citizens in these communities.
Both buildings need critical system upgrades and extensive renovation to continue to provide housing for the next generation of seniors. The development costs will total roughly $168 million. In addition to the use of tax-exempt bonds and an anticipated $67.5 million in 4% tax credit equity generated from the bonds, other funding will consist of a $41million mortgage, a $56.5 million loan from the CHA; $2.3 million in accrued interest and $410,000 returned from the rate lock deposit. No City funds will be used in the redevelopment of the two buildings.
CHA is asking the City to cede a $90 million volume cap for bonds that they will issue to a newly formed entity, Albany Gaines LLC. This entity will borrow the funds from CHA with the proceeds used to reimburse CHA for capital costs spent on this project. This funding structure will provide CHA with money to spend on the future rehabilitation of other buildings in their portfolio.
# # #