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CHICAGO-A North Side neighborhood could get a 187-unit building providing affordable rental housing the seniors 55 years or older as a result of a financing package endorsed Tuesday by the community development commission. Ravenswood Partners of Illinois, LP will build its $34-million, nine-story building at 1818 W. Peterson Ave., on a 49,000-sf lot now used by a local car dealer to park inventory.
In addition to $5.8 million in tax increment financing, the city is pledging $6 million in HOME funds, according to Tracy Sanchez of the department of housing. Construction will be financed by $20 million in tax-exempt bonds, while low-income housing tax credits are expected to generate $9.7 million in equity, she adds.
"This project will bring 187 senior units to our community," says 40th Ward Alderman Patrick J. O'Connor. "We have not been a community that traditionally has had a lot of department of housing dollars."
All of the units will be rented to seniors earning 60% or less of the area median income. Rents will range from $589 a month for 16 studios to $940 a month for 16 two-bedroom units, with 155 units being one-bedrooms. Free and discounted services also will be offered on site.
Ravenswood Partners of Illinois is paying $4.2 million for the 1.1-acre site. The high cost of the land, coupled with a lower yield on the rental units, requires the developers to seek tax increment financing, says department of planning and development project manager Christopher Jang.
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