Chicago-based The Habitat Company, a leading U.S. multifamily developer and property manager, announced today it has closed on the $16 million acquisition and rehabilitation of a 153-unit , single-room-occupancy community in Chicago’s East Garfield Park neighborhood. Work to renovate East Park SRO has started, and is scheduled to be completed in May 2018.
“The Habitat Company started as an affordable housing developer 46 years ago, and while we are diversified in market-rate and condo management disciplines, we’re consistently looking to grow our affordable housing portfolio with meaningful projects,” said Matt Fiascone, president of The Habitat Company. “Preserving the affordability of East Park SRO demonstrates how important public-private partnerships are to both provide affordable housing opportunities and link residents with the supportive services they need to become self-sufficient.”
No stranger to the building at 3300 W. Maypole Ave., Habitat developed East Park SRO in 1994 through an affiliate – East Park Limited Partnership – and has managed the community since it welcomed its first residents. This latest financial commitment will ensure the development remains affordable, add enhancements for residents and reduce the building’s carbon footprint by adding energy efficiencies.
East Park will be retrofitted with LED lighting, high-efficiency boilers and new in-unit heating and cooling. Rehabilitation work will include a new roof, masonry repairs, mechanical upgrades, landscaping improvements, lighting and common area enhancements, as well as unit upgrades. During the 13-month project, residents will move to alternate apartments at the property until their apartments are renovated.
Estimates show energy upgrades are a cost-effective strategy for multifamily developers – improving efficiency by up to 30 percent, and saving approximately $3.4 billion each year, according to the American Council for an Energy-Efficient Economy (ACEEE).
Since its first affordable housing development on Chicago’s South Side in 1971, Habitat has grown to become one of the largest multifamily developers, owners and managers in the country. Today, the company’s management portfolio comprises more than 22,000 units across five states, of which approximately 10,000 are affordable or public housing. In fact, Habitat is currently the largest property manager for the Chicago Housing Authority.
According to Fiascone, Habitat’s dedication to affordable housing increases every year. During Habitat’s 45th anniversary in 2016, the company launched Generations Housing Initiatives (GHI), a separate non-profit entity created to provide social services programs. The non-profit also helps the company’s community development arm gain access to the much-needed funding critical to the redevelopment of affordable housing communities.
At East Park, GHI will partner with Major Adams Community Committee and Breakthrough Ministries to provide additional services to residents to help them achieve self-sufficiency, including access to job readiness training, educational services, substance abuse treatment, health and wellness services and financial literacy.
The project will be funded through a mix of equity from federal low-income housing tax credits (LIHTC) and tax-increment financing funds from the City of Chicago, a grant from the Federal Home Loan Bank of Chicago and debt financing from the Illinois Housing Development Authority. The PrivateBank also provided a construction loan, financed through the purchase of tax-exempt bonds issued by the City of Chicago.
For more information about Habitat, visit www.habitat.com.
About The Habitat Company:
Founded in 1971, The Habitat Company is a full-service residential real estate company specializing in property management, acquisitions and development. One of the largest residential property developers and managers in the United States, with over $3 billion in assets and more than 22,000 units under management across five states, the company’s portfolio spans a range of property types, from mid- and high-rise condominium, apartment and adaptive reuse developments to senior and affordable housing communities. Headquartered in Chicago, with more than 800 employees throughout the United States, Habitat is dedicated to improving the communities it serves through innovation and a commitment to excellence. For more information, visit www.habitat.com.
Chicago-based The Habitat Company has just started a year-long project at East Park SRO in Chicago to add enhancements for residents, reduce the building’s carbon footprint and make other improvements as part of its commitment to help ensure the development remains affordable for years to come.