Building is NHPF's Second Chicago Single-Room Occupancy (SRO) Property
NEW YORK, Oct. 10, 2022 /PRNewswire-PRWeb/ -- NHPF, a national not-for-profit provider of affordable housing, announced today that it has closed recapitalization of the Covent Hotel, an SRO property the organization acquired in 2016 as part of the City's SRO Preservation Ordinance. The redevelopment is made possible with financing from Merchants Capital, R4 Capital, the City of Chicago, and Illinois Housing Development Authority (IHDA).
The investment is NHPF's second SRO deal in Chicago, with a total development cost of $21.6M, which includes $7.9M in federal Low Income Housing Tax Credits (LIHTC) and Historic Tax Credits, $5M of City Home and Affordable Housing Opportunity Funds, $3.1M in IHDA Permanent Supportive Housing Funds and $4.9M of a HUD/FHA 220 loan.
The 30 new studio apartments will feature private kitchens and baths and the building will also house three commercial spaces. The property will feature onsite supportive services in partnership with NHPF's Resident Services affiliate, Operation Pathways, and local case management organization, Renaissance Social Services, Inc.
"Covent Apartments is so important to this community as it extends affordability to extremely low-income, homeless individuals or individuals on the verge of homelessness," said Mecky Adnani, lead developer and Sr. Vice President, NHPF, "Importantly, the property also offers the only Permanent Supportive Housing in Lincoln Park."
Construction is scheduled to complete in 12 months. Weese Langley Weese, Ltd is the architect on the project and the general contractor is Linn Mathes, Inc.
"Affordable housing is diminishing in this affluent neighborhood," said former 43rd Ward Alderman Michele Smith, who was instrumental in bringing the Covent deal to close, "And Covent Apartments will preserve the historic fabric of the building in conjunction with the State Historic Preservation Office and the National Park Service."
About The NHP Foundation
Headquartered in New York City with offices in Washington, DC, and Chicago, IL, The NHP Foundation (NHPF) was launched on January 30, 1989, as a publicly supported 501(c)(3) not-for-profit real estate corporation. NHPF is dedicated to preserving and creating sustainable, service-enriched multifamily housing, and single-family homes that are both affordable to low and moderate income families and seniors, and beneficial to their communities. NHPF's Construction Management Group provides in-house resources dedicated to infrastructure review, infrastructure development and costs management. Through Family-Centered Coaching, NHPF's subsidiary Operation Pathways engages with, and assists, families experiencing poverty and other hardship, to problem-solve together. Through partnerships with major financial institutions, the public sector, faith-based initiatives, and other not-for-profit organizations, NHPF has 54 properties, including over 9,000 units, in 16 states and the District of Columbia. For more information, please visit http://www.nhpfoundation.org.
marijane funess, The NHP Foundation, 9148303754, [email protected]
SOURCE The NHP Foundation