An ordinance that authorizes the issuance of up to $5,000,000 in multi-family loan funds and designates Covent Apartments LLC., one of its affiliates, or an entity acceptable to DOH Commissioner, as the developer was passed by City Council today. The Covent, located at 2653 N Clark, was one of the first projects preserved under the City’s 2014 Single Room Occupancy (SRO) Preservation Ordinance, enacted to preserve SRO affordable housing. The project will modernize and preserve 30 affordable units in the Lincoln Park neighborhood, where affordable housing is scarce. All 30 units will target very low-income individuals earning less than 50% of the area median income (AMI), with 25 of the 30 units targeted to households earning no more than 30% of AMI. All units will receive rental subsidies from the Chicago Housing Authority (CHA).

Total development costs are roughly $21 million. In addition to the City of Chicago multifamily loan funds, other funding will consist of up to $12 million in tax-exempt bonds issued by the City of Chicago, the 4% tax credit equity generated from the bonds, a first mortgage, a loan from the IHDA Trust Fund, a grant from ComEd, and equity generated from historic tax credits.  

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