Department of Housing Proposes Funding to Preserve Fully Affordable Housing Near Palmer Square Park

The Department of Housing (DOH) is seeking up to $4 million in acquisition financing to preserve the long-term affordability of 3301 W. Palmer Place in the 35th Ward. The 37-unit property has 18 units restricted to households earning 50% Area Median Income (AMI) and 18 units restricted to households with 80% AMI, with one additional unit currently offline.

The property's existing affordability commitments are no longer secured for the long run, as original financing terms have reached maturity. The developers met with DOH to express their preference that these units remain affordable and to seek acquisition financing which would avoid displacing current tenants from their respective homes, while also providing time to prepare a longer-term rehabilitation and recapitalization plan.

The project has an overall cost of approximately $7.106 million and would involve the acquisition of the property by 3301 W. Palmer LLC, a joint venture between Catalina Housing and Stocking Urban, from Augusta Associates Limited Partnership, an affiliate of Hispanic Housing Development Corporation.