WOODLAWN — The City Council is considering giving another boost to affordable housing in Woodlawn with a proposal Wednesday to inject $25.4 million to improving 196 units.
Aldermen are considering $20 million in tax incentives and loans for nonprofit developer Preservation of Affordable Housing to add to the growing number of affordable rental apartments in Woodlawn.
The developer is best known for its project with the U.S. Department of Housing and Development to transform the Grove Parc Plaza Apartments near Cottage Grove Avenue and 63rd Street. But the new round of funding would push the developer deeper into the neighborhood to fix up 16 buildings.
The increased investment in affordable housing in Woodlawn comes as market-rate developers up their own bets on building close to Obama presidential center.
Bill Eager, Chicago area vice president for Preservation of Affordable Housing, said many of these buildings have been owned by the nonprofit for some time, but have waited for financing for upgrades before they could be leased to former Grove Parc residents that want to return.
“For the buildings we have owned several years, that's mostly additional security, landscaping, air conditioning, etc.,” Eager said. “The newer buildings will require a little more work.”
Among the newer buildings is a vacant 12-unit complex at 6350 S. Kimbark Ave. that will get a complete rehab.
The bulk of the new work, 121 units, will be set aside for Grove Parc residents who want to move back and will retain Section 8 contracts over the long term. An additional 56 units will be leased at affordable rates and 19 units will be rented at market rate.
Preservation of Affordable Housing will need to come up with more than $5 million for the project while the City Council considers a package that includes $13 million in tax-exempt bond financing, a $1.5 million loan and $5.4 million in low income housing tax credits.