NEAR NORTH SIDE — A single-room occupancy building on the Near North Side is getting a $27 million makeover, the mayor's office says.
Built in 1927 as a 155-unit SRO, the Carling Hotel, 1512 N. LaSalle St., will shed 75 units in the $27.4 million renovation, according to a plan unveiled by Mayor Rahm Emanuel's office.
The new hotel will offer 80 units. Eight will be reserved for CHA residents, 31 will be affordable for tenants earning up to 50 percent of the area median income, and 36 will be affordable for tenants earning up to 60 percent of the area median income. Five will be affordable for tenants earning incomes up to 80 percent of the area median income, the city said Wednesday.
In addition to rehabbing the rooms, the plans include giving the vintage lobby and facade a facelift.
The city has agreed to buy the four-story building from Carling Hotel LLC for $10 million and transfer it to Michaels Development Co. for $3.8 million using funds from the SRO Preservation Initiative and the Affordable Housing Opportunity.
The rest of the project will be paid for using a mix of tax credits, donations and a private mortgage loan, according to the mayor's office.
The deal is one of several to take place under Emanuel's 2014 SRO ordinance, which passed last year.
The ordinance was touted as a solution to a "crisis" that left many homeless or displaced, as SROs are sometimes considered a "housing of last resort" for people who are poor. It forces any seller of an SRO to notify the city and in turn provide a six-month window for developers who wish to continue the SRO or turn it into affordable housing to bid.
There are just 65 SRO buildings left in the city compared to more than 1,000 at its peak.
The former Diplomat Hotel in Lakeview and the Viceroy Hotel on the Near West Side are slated to undergo similar renovations.
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