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PROPOSED HOME INVESTMENT PARTNERSHIPS PROGRAM
Department: Planning and Development
Other Part(ies): RYZE Properties-Homewood, LLC
Request: Cook County’s Department of Planning and Development requests approval of the investment of $3,000,000 in HOME Investment Partnership ARPA Program funds in the amount of $3,000,000 for an 18-month construction period and thirty-year permanent term with a 0% interest rate, defined payment of principal during the permanent period. The loan will be used to finance the acquisition and rehabilitation of a 30-unit multifamily residential building in the City of Chicago Heights, Illinois.
Total Development Cost: $4,566,233.00
Project Loan Amount: $3,000,000.00
Fiscal Impact: $3,000,000.00
Account(s): 11900.1013.54211.580171.0000
Summary: Cook County’s Department of Planning and Development staff recommends the investment of $3,000,000 in HOME Investment Partnership ARPA Program (HOME ARPA) in the amount of $3,000,000 for the 18-month construction period and thirty-year term with a 0% interest rate. The loan will be used to finance the acquisition and moderate rehabilitation of a 30-unit multifamily residential building in the City of Chicago Heights, Illinois.
The three-story masonry building contains six (6) studios, eighteen (18) one bedroom and six (6) two-bedroom units. The eighteen-month rehabilitation will include upgrades to the HVAC, plumbing and electrical systems, upgraded kitchen and baths, cosmetic updgrades to the living and common areas, without any major restructuring of units and entries.
Grant Avenue Apartments is located at 737-747 Grant Avenue in Chicago Heights, Illinois, 60411. The building was built in 1968.
The general contractor is TSC Development, Inc., a construction and development company based in Richton Park, IL since 2013 specializing in residential and commercial projects. The architect is Soma Design Consultants, a Chicago-based full-service architecture firm.
RYZE Properties-Homewood, LLC will be the single purpose entity owning the real estate.
Brownleaf Holdings, the parent company owned by Victor and Elvena Dickson has partnered with Blue Cross Blue Shield of Illinois to provide permanent supportive housing as part of the South Suburban Women’s Housing and Health Initiative. Blue Cross Blue Shield (BCBS) provided a three-year grant totaling $1,800,000 for capital improvements and to subsidize up to twenty units at market level with an opportunity to reapply after expiration of the initial period. Additionally, traditional bank financing will support the development’s financing.
RYZE America, Not for Profit is the service provider to the BCBS clients. The services are provided by several doctors from Roseland Community Hospital, Howard Brown Health, Emory Aetna Better Health, and Family Christian Health Center. Services include prenatal and post-natal advisory medical, case management, care coordination, securing wrap around services, providing motivational interviewing and peer support.
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