Various Housing Measures Approved by City Council
NEW 100% AFFORDABLE HOUSING DEVELOPMENT PLANNED FOR NORTH LAWNDALE
City Council passed a measure today introduced by Mayor Lori E. Lightfoot that would authorize the issuance of up to $20 million in Multi-Family Housing Revenue Bonds, $5.5 million in TIF funding, a negotiated sale of seven City-owned parcels, up to $9.2 million in Multi-Family Loan Funds, and approximately $160,000 in Donation Tax Credits to finance the construction of Grace Manor Apartments in North Lawndale. In addition to the bond funds, other funding will include an equity bridge loan of approximately $13M from Merchants Capital.
The new six-story building will feature a ground floor devoted to residential amenities, retail and community space, and space for job training and wealth-building classes. The second through sixth floors will include 65 affordable housing units with a unit mix of 31 one-bedrooms and 34 two-bedrooms and a sixth-floor rooftop deck.
Grace Manor Apartments is a partnership between East Lake ad Grace at Jerusalem CDC. East Lake has an extensive track record of developing residential properties, commercial and office buildings, and mixed-use developments. Previous projects with City funding include Roosevelt Towers I, a 126-unit affordable building that received a Multi-Family Loan and Low-Income Housing Tax Credits in 2004, and Lawndale Plaza, two affordable buildings comprising 198 units on the 3100 block of W. Roosevelt Road. Grace CDC is related to the Grace Memorial Baptist Church in North Lawndale, where Rev. Marvin Hunter serves as Senior Pastor. Grace Manor is Grace CDC’s first project with the City of Chicago.
SHUTTERED ELEMENTARY SCHOOL WOULD BECOME NEW APARTMENT BUILDING FOR TEACHERS IN HUMBOLDT PARK
City Council passed a measure today that would allow the issuance of up to $18,000,000 in Tax-Exempt Bonds to finance “Teachers’ Village Chicago” in Humboldt Park. This proposed development includes renovation and repositioning of the former DeDuprey and Von Humboldt elementary school building into 102 rental apartments to be pre-marketed to teachers, as well as new construction of five new market-rate townhouses. Teachers Village Chicago would also feature over 4,000 square feet of commercial and retail space, including a non-profit retail space, nearly 5,000 square foot “community as campus” life-long learning center, over 6,000 square feet of amenity space within the building, a central piazza/public square, and 53 on-site parking spaces.
The total project cost is $50.6M that includes a $7.4M private loan, General Partner Equity in the amount of $742,000, $6.8M in Tax Exempt Bonds, a Deferred Developer fee of $1.M, $14.9M in Tax Credit Equity, and $18.9M in DOH Soft Funds. The Chicago Housing Authority (CHA) will also provide 27 vouchers to assist with affordability. Twenty percent of the units will be affordable at 50% of the area median income (AMI) or less.
The construction of this project will provide new housing opportunities for Chicago Teachers and affordable housing for residents for a minimum of 30 years, generate approximately 400 temporary construction jobs and 23 permanent jobs, and exceed the City energy code standards.
NEW MIXED-INCOME DEVELOPMENT PLANNED FOR AUSTIN
Mayor Lori E. Lightfoot introduced a measure to City Council today that would authorize the issuance of up to 12.9 million in TIF funds and up to $10M in Department of Housing (DOH) Multifamily loan or grants funds for the construction of Austin United Alliance in the INVEST South/West Austin Community. The new six-story, 78-unit mixed-income residential development will be built alongside the Laramie State Bank, which is currently being redeveloped.
Once approved, today’s measure would also issue up to $1,500,000 in 9% Low Income Housing Tax Credits, which are expected to generate $14,250,000 in equity. The measure will also convey one City-owned lot with a value of $28,000 to the developer for $1 and designate Austin United Alliance GP, LLC or their successor affiliate(s), Heartland Housing, Inc., a not-for-profit corporation, or an entity acceptable to DOH Commissioner as developer.
Austin United Alliance will include 37 one-bedroom, 36 two-bedrooms, and five three-bedrooms. Sixty units will be affordable to households at or below 50% and 60% of the area median income (AMI), and 18 units will be market price. The total project cost is estimated at $40M and will be financed with various sources, including TIF, 9% LIHTC and DOH multifamily funds, ComEd Energy Grant, and GP Equity. Austin United Alliance, LP will be the owner/borrower for this development. The General Partner, Austin United Alliance GP, LLC, will hold 0.01% ownership in the entity, Heartland Housing, Inc will own 70%, and 30% will be owned by Oak Park Regional Housing Center, both nonprofit.