Today, just over half of Chicago renter households pay more than 30% of their income on rent. All told, the city requires 120,000 more affordable rental units to meet current housing demands, reports the Institute for Housing Studies at DePaul University.
There is no denying that this is a difficult situation for the city and its residents. Fortunately, Chicago has some local advantages, like a growing acceptance of the Yes In My Backyard (YIMBY) movement and nationally respected developers like Brinshore Development, which is headquartered in the northern suburb of Evanston, according to Annette Reschke.
Reschke is well qualified to know. As an executive director on the Community Development Banking team for JPMorganChase, she’s part of a banking operation that posted a lending volume of more than $22 billion over the last decade, helping to create and preserve more than 134,000 affordable housing rental units nationwide during that span.
What sets the Windy City apart? The industry veteran offers her perspective:
How do you describe the affordable housing development climate in Chicago?
Undertaking projects in Chicago has become more challenging due to a rise in construction costs and a decrease in available soft money sources. However, this doesn't mean that projects aren't happening—they are.
Take for example the 409-unit affordable housing development Lawson House that opened earlier this year. The $128 million renovation project targets the homeless and near-homeless with partially furnished micro-apartments and a variety of resident services.
Another is the Westhaven Park project on the Near West Side that is nearly complete. The 12-story, 96-unit mixed income property includes 63 units targeting residents between 50% and 80% of the area median income. Our team is working hard to help support more projects like these.
What encourages you about the city’s response to affordable housing?
A couple things.
First, there is a growing acceptance of mixed-income housing in unexpected areas. Take Lawson House, for example, located in the upscale Gold Coast neighborhood on the Near North Side. In this area, market-rate rents across the street can reach $4,000 per unit. Increasingly, Chicagoans are recognizing the vitality and dynamism that mixed-income communities bring. Additionally, the city's robust public transportation system enhances the appeal of these communities.
What other advantages?
The city is fortunate to have outstanding developers such as Brinshore Development. The firm recently celebrated its 30th anniversary in a gathering I was honored to attend. The principals there, Richard Sciortino and David Brint, exemplify industry best practice. Their team is deeply engaged with the communities they serve, which is evident in the smart design and scale of their projects. While the numbers are important, Brinshore’s focus goes beyond that. They’re mission-driven to change lives and communities for the better. For them, it’s very personal.
Can you think of a project that illustrates that?
Absolutely. The Foglia Residences at The Chicago Lighthouse. This nine-story, 76-unit project is a combined 4% and 9% low-income housing tax credit (LIHTC) project. It’s also historic. Let me share Brinshore co-founder David Brint’s humbling comments:
“JPMorganChase is a remarkable partner, significantly contributing to the community through their involvement with The Foglia Residences at The Chicago Lighthouse. Their support has facilitated the creation of the first LIHTC solution in the U.S. designed specifically for the blind or visually impaired. This initiative highlights their commitment to addressing important needs and fostering inclusivity. JPMorganChase’s involvement continues the long effort to support affordable housing for Brinshore and the industry.”
What other lessons can owners and developers draw from Brinshore?
Their increasing focus on staff development, particularly in preparing the next generation to carry forward their mission. In the past, everyone wore multiple hats, and now they recognize the importance of transferring their knowledge and life lessons to younger associates.
As a company, they’re transparent, open, and upfront, welcoming any idea that helps advance their projects. There are no surprises; everything is laid out on the table. We’ve provided financing for 35 of their projects over the last 18 years and look forward to many more in the future.
To learn more, get in touch with the JPMorganChase Community Development Banking team.
