A five-story, 68-unit building will be constructed on a city-owned site at 1401 W. Roosevelt Rd., in the shadow of the redevelopment of the Chicago Housing Authority's former ABLA project into a 2,441-unit mixed-income community on the Near South Side. The $10.5-million building designed for senior citizens needing affordable, independent living housing will be built with $6.9 million in low-income housing tax credits from the Illinois Housing and Development Authority. However, Intercommunity Housing Corp. is also getting a $1.1-million loan from the city's department of housing, as well as a bargain $200,000 price for the 35,313-sf site at the southwest corner of Roosevelt Road and Loomis Avenue. The site, acquired by the city more than three years ago, was most recently appraised at $775,000, according to department of planning and development project manager James Thompson. The land write-down was endorsed recently by the community development commission, and the plan commission is expected to give its recommendation Feb. 25 to the city council.

Two banks are vying to provide the developer with financing for the remaining $1.7 million. The $1.7 million is all the conventional debt the building can afford, says department of housing commissioner John Markowski. All but seven units will go to seniors earning 60% of the area median income or less, with 15 of those going to tenants earning less than 40% of the area median income.

Construction is expected to take at least a year, beginning in June. For at least three years after its scheduled 2006 completion, the building will be run by Eastlake Management and Development Co., which Intercommunity Housing Corp. has hired as a consultant for the project.