LINCOLN PARK — A plan to dedicate metropolis funds towards rehabbing a single-room occupancy constructing into everlasting supportive housing in Lincoln Park is scheduled for a Metropolis Council vote Wednesday.
The council’s Committee on Finance signed off on an settlement Thursday for the town to offer as much as $5 million in multifamily mortgage funds and as much as $12 million in tax-exempt bonds towards nonprofit NHP Basis’s $21 million challenge to rehab the Covent Lodge, 2653 N. Clark St.
The Covent Lodge dates to 1915, when it was constructed to accompany an adjoining theater, which was demolished within the Nineteen Sixties. The surviving three-story constructing has lengthy served as a single-room occupancy, but it surely fell into disrepair after its earlier proprietor died, metropolis officers stated.
The proposed rehab includes changing the resort’s 64 rooms into 30 bigger studio models with their very own kitchens and bogs, metropolis officers stated. All of the models will probably be everlasting supportive housing restricted to tenants at or under 30 p.c and 50 p.c of the world median earnings.
Ald. Michele Smith (forty third), who has supported the challenge since earlier than it went to the town’s Plan Fee in 2020, stated it was a “very tough challenge to carry to fruition due to the excessive price in our neighborhood.”
The realm median earnings in Lincoln Park is just below $100,000, metropolis officers stated.
“It was crucial to me and the encircling neighborhood that we protect this [single-room occupancy], which has been used on this trend since simply previous the Despair,” Smith stated. “We couldn’t be happier.”
The resort’s renovation may even contain changing doorways, home windows and elevator programs, in addition to changing its eight ground-level industrial areas into 4 bigger retail areas, stated Mecky Adnani, senior vice chairman at NHP.
“That is what the neighborhood wished,” Adnani stated. “These sorts of rental models are wanted within the Lincoln Park space, and we’re actually glad we might protect the constructing whereas creating these 30 nice studio flats.”
At the moment, the Covent Lodge has tenants in 20 of its models. They are going to be supplied precedence to return to the renovated studio models as soon as the rehab is completed, Adnani stated.
Underneath the Uniform Relocation Act, NHP could have a relocation plan and a relocation specialist on board to seek out models close by the Covent for its present tenants to remain in whereas the rehab is occurring, Adnani stated.
The Chicago Housing Authority has additionally authorized 30 project-based vouchers for the Covent’s incoming residents, together with its present tenants, Adnani stated. The vouchers enable residents to pay 30 p.c of their earnings for lease.
“So we anticipate some residents to really have a discount from the rents they’re presently paying,” Adnani stated. “The project-based subsidy protects the residents because the lease relies on their earnings, not the market.”
“We don’t displace anyone, so they arrive again to model new, semi-furnished models in Lincoln Park which are going to be stunning,” Adnani stated.
The Covent Lodge’s renovation is a part of a deliberate improvement that includes constructing a contemporary seven-story constructing designed by structure agency Brininstool + Lynch within the car parking zone east of the historic constructing. Adnani stated the developer’s buy of the car parking zone will assist finance the Covent’s rehab.
Though the brand new construction requires 84 rental models, solely two will probably be supplied at an inexpensive price. To fulfill the town’s Reasonably priced Necessities Ordinance, the builders can pay the town $794,000 to cowl the shortfall of on-site, low-cost models.
That cash will go straight towards the funding renovation of the previous Covent constructing, Adnani stated.
Different funding consists of the 4 p.c tax credit score fairness generated from the town’s bonds, a primary mortgage, an FHA insured first mortgage mortgage, a mortgage from the Illinois Housing Improvement Authority Belief Fund, a grant from ComEd and fairness generated from historic tax credit, in line with a news release from the town’s Housing Division.
“Everyone has come collectively from the time we bought this constructing in 2016, and all people’s excited and supportive of it,” Adnani stated. “It’s been a real collaboration.”
Jake Wittich is a Report for America corps member protecting Lakeview, Lincoln Park and LGBTQ communities throughout the town for Block Membership Chicago.
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