UPTOWN — More than 100 affordable homes at Leland Apartments in Uptown will be preserved thanks to a partnership between Mercy Loan Fund and Heartland Housing Inc.
The property at 1207 W. Leland Ave. had been struggling to maintain positive cash flow after the interest rate on previous debt reached 7.74 percent. Mercy Loan Fund, a community development financial institution, took over the mortgage on the property and refinanced the debt at a lower interest rate in a new 30-year mortgage, according to a news release.
“We are honored to help preserve this bastion of affordable housing in Chicago, especially in partnership with an organization whose mission is so well-aligned with our own. Heartland Housing is dedicated to building communities by offering affordable housing and essential supportive services, and we are thrilled to help," said Jason Battista, president of the Mercy Loan Fund.
Mercy Loan Fund doesn't normally take over mortgages, but is committed to innovative solutions when conventional methods are not plausible. Its mission is to "create stable, vibrant and healthy communities by developing, financing and operating affordable, program-enriched housing for families, seniors and people with special needs who lack the economic resources to access quality, safe housing opportunities," according to its website.
The lowered interest rate will save the property $48,000 each year. The property has 137 affordable studio and one-bedroom apartments available for those with low incomes or who have experienced homelessness, the release said.
"Because of Mercy Loan Fund, the Leland Apartments now has strong financial footing that will help ensure it remains quality, affordable housing for years to come. The Mercy Loan Fund team's dedication and the creative solutions they came up with are outstanding in the field, and make them critical partners in social innovation," said Michael Goldberg, executive director of Heartland Housing.
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