The city council today approved the authorization to execute a multi-family loan agreement with Casa Durango LP and to appoint Casa Durango LP as the developer for the new construction of two elevator buildings in the Pilsen district. Together, the new developments will house a total of 53 affordable rental units with one to three bedrooms, community space and tenant storage, 37 parking spaces 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, a tenant community space and indoor storage, laundry room, 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, a community space for tenants and indoor storage, a laundry room, six parking spaces and a bicycle storage room. In addition, this location is considered a Transit Site (TSL) location as the CTA Pink Line elevated train is approximately 1,400 feet west of the proposed site.
The total development costs amount to approximately $ 27,514,809 and in addition to the city’s multi-family loan of $ 5,573,580 and 9% tax credits for housing for low-income people, which will generate approximately $ 17,294,270 in equity for the benefit of the transaction, other financing will consist of a private loan of $ 1,650,000, an Illinois Housing Development Authority (IHDA) loan of $ 2,650,000, a loan of sponsor of $ 100,000 to The Resurrection Project, a note to seller 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 service organization that started out as an advocacy organization with a mission to create community property and build community wealth. TRP began with an initial investment of $ 30,000 raised from affected neighbors and churches in the area. Since its inception 31 years ago, TRP has developed and operated 500 homes / apartments for sale and rent, operates two daycare centers, a senior center and various commercial spaces.
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