Bellwether Enterprise Real Estate Capital, the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc., has closed a $20.5 million loan deal to rehabilitate and preserve the affordability of an existing portfolio of nine multifamily properties in the communities of West Town and Humboldt Park in Chicago.
Victor Agusta, executive vice president at Bellwether Enterprise, arranged the Federal Housing Administration loan on behalf of the borrower, Bickerdike Redevelopment Corporation.
“Victory Apartments have provided a crucial source of affordable housing for families in Chicago for decades amid rising pressures of gentrification,” said Agusta. “We are proud to help enhance the quality of living for residents and ensure that Victory Apartments remains affordable for years to come.”
Victory Apartments, named after the successful campaign to push the State of Illinois to fund its first affordable housing development in the area, consists of 107 affordable units located close to outdoor recreational areas and within walking distance to public transit and local shops and services.
The rehabilitation was financed with tax-exempt bonds, a 4 percent Low-Income Housing Tax Credit, Illinois Donation Tax Credits and a subordinate mortgage from the Illinois Housing Development Authority. The existing Section 8 Housing Assistance Payments contract was renewed for 20 years under the Rental Assistance Demonstration program, which played a key part in adjusting the subsidized rents to levels that can support the renovations.