The City of Chicago has passed an ordinance to issue up to $9 million for the construction of a four-story mixed income building in Douglass Park. The building—developed by Ogden Washtenaw A2 Residential—will have 75 units with the lion’s share (57 units) for residents at or below 60% of the Area Median Income (AMI).

Of the 57 affordable units, 30 will receive rental assistance from the Rental Assistance Demonstration (RAD) program, and the building’s remaining 18 units will be market-rate.

The new construction offers landscaped outdoor areas, such as a patio and a children’s play area. The walkways will be shared throughout with Ogden Talman A1 Residential, which is currently under construction. Amenities include an entrance lobby, computer room, and a fitness center. Each unit also includes Energy Star-rated appliances.

In addition to the $9 million TIF Grant, other sources of financing include a first mortgage and construction/equity bridge loan from the private sector, general partner equity, and a deferred developer fee. A $10 million capital loan from the Chicago Housing Authority (CHA) is expected to generate approximately a half million of state tax credits for sale to a private taxpayer.

Lastly, the project will be financed with a 2021 reservation of 9% Low-Income Housing Tax Credits from the Illinois Housing Development Authority.

###