Chicago Housing Authority - File #: 26-138

• File #: 26-138
• Type: Resolution
• Status: Agenda Ready
• File created: 10/8/2026
• In control: Real Estate Operations Development Committee
• On agenda: 11/17/2026
• Title: Authorization for increase of CHA funds for Oak & Larrabee Phase I.

title

Authorization for increase of CHA funds for Oak & Larrabee Phase I.

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Development Address	Community Area	Target Population
537-547 W. Oak Street / 939-957 N. Larrabee Street	Near North Side	Families

presenter

Presenter: Kemena Brooks, Chief of Staff

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Recommendation

The Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) authorize the CEO or his designee to: 1) increase the maximum CHA loan by $1,828,000 for an amount not-to-exceed $12,728,000 for the development of Oak & Larrabee Phase I; and 2) execute and deliver such other documents and perform such actions as may be necessary or appropriate to implement the foregoing.

Property Summary and Estimated Contract

CHA Loan Source	Type of Loan	Not to Exceed Amount
CHA Funds	Construction/Permanent	$12,728,000

Funding

This item recommends approving a maximum of $1,828,000 in additional loan funds for the Oak & Larrabee Phase I development. This change would result in a not-to-exceed total amount of $12,728,000 in CHA funds for this project.

Compliance

Subject to compliance with M/W/DBE & Section 3 Participation.

Background and Approach

Oak & Larrabee Phase I will consist of a 7-story elevator building with one floor of indoor parking, on a .7-acre parcel located at the southeast corner of Oak Street and Larrabee Street. The project will include a total of 78 residential rental units with 37 CHA units, 17 affordable units, and 24 market rate units.

In November 2023, the CHA Board approved a maximum loan amount of $10,900,000 under Resolution No. 2023-CHA-40. Since that approval, the project’s closing has been delayed, and both construction costs and interest rates have risen significantly. These events have created a substantial funding gap that must be addressed.

CHA has worked closely to identify solutions with the Developer, the City of Chicago and the Illinois Housing Development Authority (IHDA).

The Developer and General Contractor have completed value engineering to reduce construction costs. The City of Chicago plans to provide approximately $2,348,000 in additional TIF funds. The additional $1,828,000 in CHA loan funds will close the remaining funding gap and allow the project to close by the end of 2026, as required to maintain the Donation Tax Credit and Covid Affordable Housing Grant Program (CAHGPF) funding from the Illinois Housing Development Authority, totaling approximately $3,332,500.

Developer

The developer is Brinshore-Michaels Development, LLC comprised of Brinshore Development, LLC, The Michaels Development Company I, LP and Cabrini Green LAC Community Development Corporation (LAC CDC).  Cabrini Green LAC CDC is a nonprofit with the mission to benefit current and displaced Cabrini Green residents. 

Unit Summary

Unit Type	CHA	Affordable	Market	Total
Studio	0	6	4	10
1 Bedroom	14	6	7	27
2 Bedroom	20	5	10	35
3 Bedroom	3	0	3	6
Total	37	17	24	78

Timeline & Next Steps

•                     CHA Board approval - November 17, 2026

•                     City Council approval - December 2026

•                     Closing - December 2026

•                     Construction Start - January 2027

Site Map

Rendering

The requested action complies in all material respects with all applicable federal, state and local laws, and CHA policies. CHA staff has completed all necessary due diligence to support the submission of this initiative.

Respectfully Submitted:

______________________

Keith Pettigrew

Chief Executive Officer