The Regional Housing Initiative is a new and innovative tool that supports new construction, rehabilitation, and/or acquisition of mixed-income family housing near jobs and transportation.
Developers in the Chicago region are benefiting from the Regional Housing
Initiative (RHI), a new and innovative tool that supports new construction,
rehabilitation and/or acquisition of mixed-income family housing near jobs and
transportation. The program was created to spur housing development that meets
the Housing Endorsement Criteria of the Metropolitan Mayors Caucus, and
addresses several priority concerns of Gov. Rod Blagojevich regarding housing in
Illinois. RHI provides financial incentives through operating subsidies that
stay with the development for up to 10 years (renewable). Also, developers
applying for federal Low-Income Housing Tax Credits receive four extra points in
their Illinois Housing Development Authority
(IHDA) application scoring.
The RHI is comprised of five partners: IHDA, the Metropolitan Planning
Council (MPC), and three housing authorities in the region: Chicago, Cook, and Lake. The partnership is
preparing an expansion to include other counties, and better serve
municipalities throughout the region in 2004.
To date, RHI has awarded subsidies to five developments: a large, new
construction project in Lake County, a major rehab proposal in suburban Cook
County, and three small supportive housing sites in the City of Chicago.
Terra Springs Apartments in Volo, Lake County
Carefree Development Corporation has been awarded 15 RHI vouchers for the
development of family housing at the Terra Springs Apartments in Volo, Ill. The
Terra Springs Apartments, 96 homes in total, will also include apartments that
rent at tax credit and market rate rents, creating a new mixed-income
development. It will place affordable rental units in a growing area of Lake
County where new retail and for-sale development is also taking place.
Salem Hill Apartments in Hoffmann Estates, Cook County
Through moderate rehabilitation, Hispanic Housing Development Corporation and
Fifth Avenue Capital Partners will convert an existing four-story apartment
building located in Hoffman Estates, Ill. into a 75-unit, mixed-income
development. The rehabbed building will include one-, two-, and three-bedroom
homes. Fifteen units will be leased at market rate; 27 will be available for
families with incomes between 50 and 60 percentof the Area Median Income; 33
will be reserved for very-low-income families. The proposal is the first step of
a rehabilitation program that includesthree identical buildings and will create
a substantial pool of affordable apartments for families working in the
northwest suburbs.
Casa Kirk in South Chicago, Cook County
Claretian Associates will receivefive RHI subsidies for its Casa Kirk
proposal, developed in collaboration with Interfaith Housing Development
Corporation. Casa Kirk has been projected as a high-quality, new construction
building providing affordable two-, three-, and four-bedroom apartments for 26
low- and moderate-income families of South Chicago, a community located in
Chicago’s Southeast Side. This development will return 18 vacant lots to
productive use, representing a substantial investment in the community.
Leland Apartments in Uptown, Chicago, Cook County
A total of 14 RHI vouchers were awarded to Century Place Development
Corporation, a partner of Heartland Alliance, for its Leland Hotel redevelopment
proposal. This developer will preserve the historic nature of the building,
while keeping it affordable for low-income residents. By adding kitchenettes and
updating bathrooms, the present 175 single-occupancy rooms in the Leland Hotel
will become 133 larger, livable apartments located in the heart of Uptown ,
currently one of the most diverse communities onChicago’s North Side.
Wentworth Commons in Roseland, Chicago, Cook County
The Wentworth Homes proposal, a development of Lakefront SRO, will receive
RHI subsidies for 10 apartments within a 51-unit building of family supportive
housing. The proposed development, located near the revitalizing Far South
Michigan Avenue business corridor, demonstrated a viable plan to connect
residents to jobs through strong property management and supportive service
provision in the Roseland community of Chicago.
Watch www.metroplanning.org for information on the next
round of applications for RHI.