Chicago Housing Authority header
File #: 25-15   
Type: Resolution Status: Passed
File created: 1/27/2025 In control: Real Estate Operations Development Committee
On agenda: 3/24/2025 Final action: 3/24/2025
Enactment date: 3/24/2025 Enactment #: 2025-CHA-8
Effective date:    
Title: Authorization for actions necessary for the closing of Southbridge 1C.
Attachments: 1. Approved Board Letter_Resolution No. 8-Southbridge 1C Closing

title

Authorization for actions necessary for the closing of Southbridge 1C.

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Development Address

Community Area

Target Population

2311-2315 South State Street

Near South Side

Family

 

presenter

Presenter: Lee Pratter, Deputy Chief Development Officer

end

Recommendation

The Interim Chief Executive Officer (“CEO”) of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) authorize the Interim CEO or her designee to: 1) loan CHA funds in an amount not to exceed $10,000,000; 2) submit a Rental Assistance Demonstration (“RAD”) application and financing plan to the United States Department of Housing and Urban Development (“HUD”); 3) submit evidentiary documents to HUD; and 4) execute 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

$10,000,000

 

Contract Term

Total Units

RAD PBV Units

Initial Estimated Contract - 1st Year

Total Estimated Contract - 20 Years

RAD HAP 20 years (with automatic renewal)

80

29

$73,596

$1,471,920

 

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.

Funding

MTW Funds

Compliance

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

Developer

The Developer for Southbridge IC is Ickes Master Developer JV LLC.  Ickes Master Developer JV LLC is comprised of The Community Builders, Inc. (“TCB”) and McCaffrey Interests, Inc. (“MI”). TCB, head quartered in Boston, has experience creating mixed-income communities in Chicago and nationally. TCB is led by Bart Mitchell, President and CEO.

 

MI has experience leasing retail and commercial space with both national and local operators.  Recent examples of MI's mixed-use projects include Roosevelt Collection and Harper Court Redevelopment.  McCaffrey, led by Dan McCaffrey, has offices in Chicago, Pittsburgh, Greater District of Columbia, and Denver. 

 

Background and Approach

The former Harold Ickes Homes consisted of approximately 1,000 family units on approximately 11 acres. The units were demolished in 2010 to redevelop the site into a mixed-income mixed-use community. 

 

On June 20, 2015, the CHA Board approved the selection of the Ickes Master Developer JV LLC, comprised of The Community Builders, Inc. and McCaffrey Interests, Inc. to lead the redevelopment of the Harold Ickes site.

 

To date the development team has delivered two residential phases comprised of 206 total units including 68 CHA units and 15,150 square-feet (SF) of commercial space.

 

Southbridge 1C is the third phase of the development.  Southbridge 1C will consist of a 12-story, new-construction, mixed-income, mixed-use, transit-oriented building. The apartments will be  studio, one and two-bedroom units. 

 

The proposed Southbridge 1C bedroom and income mix will consist of the following. 

 

Unit Type

CHA

Affordable

Market

Total

Studio

0

6

14

20

One-Bedroom

26

5

19

50

Two-Bedroom

3

4

3

10

Total

29

15

36

80

The 29 CHA units will be subsidized using RAD project-based vouchers.

The first floor of Southbridge 1C will contain approximately 1,470 SF of commercial space and 2,505 SF of community space. 

 

 

Property Profile

 

Rendering:

 

 

 

 

Site Plan:

 

Tenant Selection Plan

The Tenant Selection Plan will be consistent with the existing management documents approved for Southbridge 1A and 1B.

 

 

Respectfully Submitted:

 

 

______________________

Angela Hurlock

Interim Chief Executive Officer