81 Affordable Unit Development Approved for South Chicago
Today, City Council passed a measure authorizing the issuance of up to $23 million in Tax-Exempt housing revenue bonds for the acquisition and construction of the new SACRED Apartments, a five-story elevator building for the South Shore community.
Of the 81 units, 15 will be studios, 11 will be one-bedrooms, 21 will be two-bedrooms, 25 will be three-bedrooms, and 9 will be four-bedroom units. All the units will be tax credit eligible, with 20% targeted to households at or below 60% of the area median income (AMI), 60% targeted to households at or below 50% AMI, and 20% of the units set aside for households at or below 30% AMI.
In addition to containing several units, the first floor will feature a front desk, community room, property management, and social service offices, retail space on the 92nd Street frontage that will be funded separately, and a 44-space parking lot at the south end.
The development will be financed with various sources, in addition to the City of Chicago tax-exempt housing revenue bonds. The bonds will automatically generate 4% Low-Income Housing Tax Credits (LIHTC) and raise at least $18.1 million in equity for the benefit of the transaction. The equity payments will be funded throughout construction to completion and finally occupancy. Other funding will consist of a private loan, TIF funds from the South Chicago area TIF and Illinois Housing Development Authority funding, grants from ComEd, GP Equity, and a deferred developer fee. The deal will involve the conveyance of both Cook County Land Bank and City-owned land. SACRED Apartments is a co-development between Interfaith Housing Development Corporation (60%) and Claretian Associates (40%), both nonprofits.
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