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