KeyBank Community Development Lending and Investment provided $34.3 million in construction and permanent financing through the HUD 221(d)(4) Mortgage Insurance program to facilitate the substantial rehabilitation of six low-income apartment buildings in the South Shore neighborhood of Chicago.
The 6900 Crandon Apartments provides 151 units for elderly and disabled residents subsidized under a project -based Section 8 contract. The remaining five apartment building provide 126 units for families.
The sponsor for the South Shore apartments is Evergreen Real Estate Group, a fully integrated real estate company that develops, acquires, and manages affordable and market-rate multifamily communities across 12 states. The properties are owned by a LIHTC partnership created by the Housing and Human Development Corporation (HHDC), a non-profit public housing facility in Chicago, whose mission is to promote affordable housing and provide services to low-income residents and families.
The project also received LIHTC and tax-exempt bond allocations from Illinois Housing Development Authority. KeyBanc Capital Markets served as the sole manager and underwriter for the $55.1 million bonds.
The funds will be used to improve tenant quality of life and sustainability of the apartments over the long term. Improvements include new cabinets, countertops, flooring, energy efficient appliances and fixtures for resident units as well as elevator modernization, upgrades to mechanical, electrical and plumbing systems and replacement of existing roofs, masonry and exterior repairs.
HHDC serves as the owner/operation and will provide on-site social service coordinators (2.5 FTE) to connect residents to a variety of community based social service providers and assist residents in determining eligibility for various government services including health care and health care education, financial literacy and computer literacy, childcare, youth activities, nutritional services, disability services, tenant home ownership training and parenting programs.
Leslie Meyers and Robbie Lynn of KeyBank CDLI structured the HUD 221 (d)(4) financing, and Sam Adams of KeyBanc Capital Markets marketed the bonds.
