title
Authorization to extend the Housing Assistance Payments (HAP) contract with Evergreen Towers II Apartments.
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|
Development Address |
Community Area |
Target Population |
|
Evergreen Towers II Apartments 1343 North Cleveland Avenue |
Near North Side |
Seniors |
presenter
Presenter: Cheryl Burns, Chief Housing Choice Voucher Officer
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Recommendation
The Operating Chairman of the Chicago Housing Authority (“CHA”) recommends that the CHA Board of Commissioners (“Board”) authorize the Operating Chairman or his designee to extend the Housing Assistance Payments (HAP) contract, and all other documents as may be necessary or appropriate to implement the foregoing for Evergreen Towers II Apartments.
The requested action complies in all material respects with applicable CHA Board policies and all applicable federal laws. Staff have completed all necessary due diligence to support the submission of this initiative.
Property Summary and Estimated Contract
A HAP contract shall be issued for the following Development utilizing funding from the Housing Choice Voucher (HCV) program:
|
Development Name Owner Entity |
Contract Type & Term |
Total # Units |
PBV Units |
Initial Estimated Contract |
Total Estimated Contract |
|
Evergreen Towers II Apartments Evergreen Towers II, L.P. |
HAP 10 years |
101 |
10 |
$231,000.00 |
$3,439,164.00 |
Initial contract rents will be determined by market comparables and fair market rents applicable at the time the HAP contract is executed. All rent determinations will comply with federal regulations and CHA policy.
Evergreen Towers II Apartments is an existing one-hundred one (101) unit elevator served senior property located in Chicago’s Near North Side community.
Project Based Vouchers assist ten (10) one-bedroom units. Applicants, seniors 55 and older, come from CHA’s waitlist. Units contain a gas range and refrigerator. Owners are responsible for all gas utilities, including heating, water heating and cooking. Tenants are responsible for lighting and other electric.
Evergreen Towers II L.P., an Illinois limited partnership (“Property Owner”) is a partnership between CJD Projects XI, LLC., an Illinois limited liability company, as Limited Partner with a 99.98% membership interest (“Limited Partner”), Walsh Construction Company, an Illinois corporation, as Special Limited Partner with a 0.01% membership interest (“Special Limited Partner”), and Evergreen Towers II, LLC., an Illinois limited liability company, as General Partner with a 0.01% membership interest (“General Partner”).
Both Limited Partner and General Partner are managed by Cullen Davis, as Managing Member, through Up Development, LLC., an Illinois limited liability company (“UP Development”). UP Development has worked with community leaders and local organizations to provide stable, dignified housing to meet the needs of residents. Their team works to cultivate relationships to enhance a community-based vision and craft housing solutions that address local challenges. Mr. Davis, a graduate of Northwestern Law, has more than 9,000 units under management and a personal portfolio of 1,300 units. Over the past 20 years, he has created affordable housing in areas of great need, utilizing models that provide supports and meaningful services to create positive outcomes for the residents.
Special Limited Partner, Walsh Construction Company, incorporated in 1949 in Chicago, Illinois, is one of the largest and most respected general contracting, construction management and design-build firms in North America. The firm operates out of regional offices across the United States, working with union labor and union subcontractors in the building, transportation and water sectors.
UPA, LLC., an Illinois limited liability company, (“Property Manager”), also managed by Cullen Davis, has been managing properties since its founding in 2003. UPA, LLC manages 56 developments in Illinois, Indiana, Ohio, California and Michigan. The management team is comprised of staff trained in the industry’s best practices in leasing, operations, and regulatory compliance. Utilizing the best practices of the Blended Housing Management Program, UPA, LLC is responsible for permanent supportive housing units, affordable or tax-credit housing, and market-rate apartments.
Respectfully Submitted:
______________________
Matthew Brewer
Operating Chairman