The vacant Strand Hotel in Woodlawn will be converted to affordable apartments through financial measures approved today by City Council.
The $23 million project by Historic Strand LP will create 63 units of rental housing within the 100-year-old building. Located at 6315 S. Cottage Grove Ave, the rehabilitation will be made possible through $2.7 million in Tax Increment Financing (TIF), a $4.7 million loan, $3.3 million in historic tax credit equity, $294,000 in donations tax credit equity and $1.2 million in Low Income Housing Tax Credits that will generate $12.4 million in equity for the project.
The five-story complex will feature studio and one-bedroom apartments with ground floor retail space. Fifty-three of the units will be made available to residents that earn up to 60 percent of area median income, nine will have market-rate rents and one will be reserved for an on-site building manager.
The City acquired the building in 2002 through a tax foreclosure. Valued at $675,000, the property would be provided to the developer for $1.
The building was placed of the National Register of Historic Places in 2013 as the last residential hotel of its type in Woodlawn. The City acquired it in 2002 through a tax foreclosure.
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