Chicago City Council approved funding on April 15 for the next phase of the Lathrop Homes redevelopment, which will create 309 new or rehabilitated mixed-income units.
The new housing will be distributed across one newly constructed building and seven rehabilitated buildings. Three existing buildings will be demolished, and the powerhouse will undergo rehabilitation to secure historic tax credits necessary for the project. Planned work includes structural repairs, repointing, and rebuilding of the smokestack. The interior of the powerhouse will be finished by a future tenant once identified. Additional amenities are set to include landscaped courtyards and off-street parking.
Related Midwest and Bickerdike Redevelopment Corporation were selected in 2010 by the Chicago Housing Authority as master developers through a request for qualification process. As part of the authority’s Plan Forward initiative, completion of Lathrop Homes is expected to deliver 1,116 mixed-income housing units and about 75,000 square feet of retail or commercial space. So far, 487 mixed-income units have been developed along with eleven acres of green space, including a two-acre “Great Lawn” and public access to the Chicago Riverfront.
The ordinance authorizes $100 million in Multi-Family Mortgage Revenue Bonds issuance and execution of a Tax Increment Financing Redevelopment Agreement totaling $40 million—$36.5 million coming from Addison South TIF funds. It also allows transfer of Illinois Affordable Housing Tax Credit proceeds generated by selling these credits for use in this project.
Total development costs are estimated at approximately $249.7 million. In addition to city funds, anticipated financing sources include $41 million in Chicago Housing Authority loan funds; a permanent first mortgage around $43.7 million; Illinois Affordable Housing Tax Credits valued at about $8.48 million based on CHA-owned land; a seller’s note worth roughly $16.96 million; and deferred developer fees.
The Chicago Department of Housing works across all 77 communities in Chicago to combat historical segregation, advance housing equity for marginalized communities, enhance housing access, protect residents’ rights to affordable homes, manage federal housing fund allocation plans, enforce affordable requirements ordinances, and collaborate with advocates as part of its role within city government, according to the official website.
