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51st and King in Chicago, IL
Creative Financing Saves Affordable Housing
The National Housing Trust/Enterprise Preservation Corporation saved 96 affordable housing units in Chicago, IL. 51st and King Drive Apartments had remained affordable to low-income tenants under HUD’s Section 236 mortgage subsidy program, but the owner was eligible to prepay the mortgage and end the low-income use restrictions. The building’s location on the edge of a revitalizing area increased the risk it would be lost from the affordability stock through condominium conversion. More than 100 years old, the building was also in need of significant rehabilitation.
NHT/Enterprise worked with the for-profit Chicago Community Development Corp to develop a comprehensive preservation strategy that included significant property rehabilitation. Our financing expertise allowed us to put together a development plan with a variety of funding sources.
Substantial rehabilitation occurred, including window replacements, an improved electrical system, and kitchen and bathroom renovations. An abandoned beauty salon was converted into a Neighborhood Networks Learning Center where computer training and information on practical life skills and GED programs are provided.
Many of the residents at 51st and King Drive Apartments have lived in the neighborhood for many years. The preservation of this property ensured they could remain in their homes.