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No Action Needed. This item was recommended for approval at the 11/14/2023 recessed meeting.
PROPOSED HOME INVESTMENT PARTNERSHIPS PROGRAM
Department: Planning and Development
Other Part(ies): McGaw YMCA, Evanston,
Request: Respectfully requesting the Board consider approval of HOME Investment Partnership Program Funds in the amount of $4,500,000.00 (30-year term, 0% interest rate, 1st position HOME loan) that will be used for the renovation of the 156-unit Single Room Occupancy YMCA residence located at 100 Grove, Evanston, IL.
Total Development Cost: $17,636,000.00
Project Loan Amount: $4,500,000.00
Fiscal Impact: $4,500,000.00
Account(s): 11900-1013-53638-580170
Summary: McGaw YMCA has requested $4,500,000 in Home Investment Partnership (HOME) funds for the rehabilitation of the existing historic YMCA residential facility in Evanston, IL. The loan has a thirty-year term, 0% permanent loan rate and is fully deferred until maturity. The rehabilitation funding will help update mechanical systems, create social spaces, renovate and privatize bath facilities and update residential units and furnishings, extending the life of 156 units for men transitioning to housing stability.
The renovation of the Men’s residences will include upgrading the bathing facilities to include privatizing bathing areas, inclusion of social rooms at the residence levels, upgrade to the mechanical systems, remodeling and refurnishing the single room occupancy units, and introducing a new entry for the residences separate from the YMCA recreational facility.
The McGaw YMCA facility dates to 1929. YMCA consolidated operations at the subject location, 1000 Grove Street, in 1968 and began expanding services to support the long term needs of men transitioning through the YMCA. Generally, the YMCA became a transitional facility supporting Men who were transitioning to permanent housing opportunities versus long-term stay at the YMCA. Achieving permanent residency requires the men to identify personal obstacles and goals, set a plan and undertake a supportive services plan to gain economic, mental, and physical health to support.
The McGaw YMCA has a unique operating philosophy under which the Men who reside there, pay for the domiciling, making the operations self-sufficient, limiting the need for housing vouchers or subsidies for the operations. McGaw initially leases each unit on a week-to-week basis. The McGaw Residence Program Team works with the residents to achieve employment by supporting resume development, wardrobe resources and interview preparation, while also working to achieve heath resource, wellness programs, financial literacy, and access to public benefits where eligible. This comprehensive rebuilding and support of their residents are key to the success and independence of the residents both while living at McGaw and upon transition to their permanent housing choices.
The subject request finances the renovation of the YMCA residential facility only and represents the first major renovation in the 95-year history of the residential building. The renovation is projected to start in Spring 2024, with a 14-month completion.
McGaw YMCA has completed a rehabilitation scope and construction drawings outlining $14.1 million in Capital improvements, Resident and Program Space renovations, Furnishings and introduction of new lobby and circulation to the Residences.
McGaw has undertaken a Capital Campaign for a significant portion of the rehabilitation that will be finalized upon receipt of commitments including the subject that meet the investment floor requirement of its major donors. Other capital has been committed by the Federal Government, the City of Evanston, and initial donors to complete the capital requirements of the renovation. The County is only contributing approximately 24% of the development costs obtaining a 3:1 ratio on use of funds. Overall renovation is less than $125K per residence which is considerably less than the cost to build new which comes in near $300K per residence in like facilities, say PSH or affordable rental units.
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