Funding for 50-Unit Affordable Development in East Garfield Park Approved

Today, City Council approved an ordinance to finance Harvest Homes II, a 50-unit affordable new-construction development submitted by the Department of Housing (DOH). The ordinance will:

1. Authorize the execution of a Tax Increment Financing (TIF) Redevelopment Agreement (RDA) with Harvest Homes II Apartments, LLC
2. Authorize the negotiated sale agreement for the disposition of three City-owned parcels to the developer for $1.00 per parcel
3. Designate Harvest Homes II, LLC as developer

Harvest Homes II represents the second phase and continuation of Harvest Homes I, a 36-unit affordable rental development in East Garfield Park. Harvest Homes II will be a three-story building with tenant amenities such as a community room, indoor/outdoor bike spaces, and ground floor retail space.

The development will be built on seven parcels at 3414-3454 W. Fifth Ave, three of which are City-owned and would be conveyed at closing. Other parcels include two from the Cook County Land Bank, and two private parcels owned by the People's Community Development Association of Chicago.

Total development costs are $39,768,976.

Financing includes a combination of TIF funds from the Midwest TIF, approximately $11M of Multi-Family Loan Funds, $1.8M of 9% Low Income Housing Tax Credits that will generate approximately $15,840,000 for the benefit of the transaction, and Illinois Affordable Housing Tax Credits of approximately $364,749, which will generate approximately $322,903 of equity.