Standard Communities has preserved 855 at-risk units in six properties in Chicago and three suburbs. The tax-exempt financing for the transaction was the largest issuance for affordable housing in Illinois.
A public-private partnership was crucial for the $206 million transaction, relying on extensive collaboration with the Illinois Housing Development Authority, the Chicago Housing Authority, and the Department of Housing and Urban Development. Through these partnerships, affordability at 775 of the units has been preserved for 30 years, and the affordability of 156 units was increased by way of attaching rental subsidy support from both HUD and the CHA. The remaining 80 units will stay affordable for 14 years, and Standard says it is committed to extending that affordability.
Prior to Standard’s investment, the six properties had not seen significant capital investment in 20 years, and the developer completed more than $50,000 per unit in renovations without displacing residents.
It has enhanced the amenity spaces and formed partnerships with local nonprofits to prioritize the services and community programming for the residents, who are primarily seniors. Resident service coordinators also will help the seniors remain connected in their communities. In addition, more than 150 units were renovated to allow increased accessibility and adaptability for residents with disabilities and hearing and visual impairments.
“We have created high-quality affordable housing in high-opportunity neighborhoods so residents can remain in place and access the resources in the neighborhoods,” says Robert Koerner, a partner at Standard, overseeing Midwest operations. “This is our chance to get it right, and we tend to focus on those deals so they read as market-rate developments when they are done. These properties are in good hands for the next 30 years.”
