CHICAGO—Mercy Housing Lakefront is leveraging $68 million to rehabilitate and preserve two apartment developments in the city’s Uptown community.
The deal involves the 16-story Northeastwood Shores Apartments and the three-story Harold Washington Apartments. The nonprofit just recently acquired Northeastwood Shores.
“Condo conversions and rising rents make housing stability extremely difficult to achieve for working families whose wages are low or individuals who struggle with special needs,” said President Cindy Holler. “That is why Mercy Housing Lakefront is working to reserve more than 1,800 affordable apartments throughout Chicago.”
The financing for the latest deal includes $33 million in bonds and nearly $20 million in low-income housing and historic tax credits, according to Scott Fergus, senior vice president of real estate development.
In addition to issuing the bonds, the city provided $3 million in tax increment financing and a $7.5 million HOME loan.
Bank of America is also a key partner, purchasing both the housing and historic tax credits. It also stepped in to provide a $33 million letter of credit.
Freddie Mac supplied a 35-year mortgage under its forward-commitment program, which helps provide liquidity and guarantees to the bondholders, explained Fergus.
Another $2.8 million came from the Department of Housing and Urban Development’s Green Retrofit Program.
Other partners include the Illinois Housing Development Authority, which provided funds from its donation tax credit program. Citibank, Fannie Mae Foundation, Home Depot Foundation, Illinois Clean Energy Community Foundation, Pierce and Associates, John D. and Catherine T. MacArthur Foundation, Polk Bros. Foundation, and the Searle Funds at the Chicago Community Trust also provided support.
