The AFL-CIO Housing Investment Trust (HIT) is putting $32 million in pension capital funding toward the rehabilitation of a 26-story residential tower on Chicago's Near South Side.
Built in 1971 with financial assistance from the Federal Housing Administration's grant program for affordable housing, the 250-unit building is in need of major upgrades to make it more energy-efficient, the AFL-CIO HIT states in a press release. The $42 million renovation project is expected to generate approximately 245 union construction jobs.
Ninety of the building's units are subsidized through a Housing Assistance Payment (HAP) contract administered by the Chicago Housing Authority, with 39 of those units restricted to residents age 62 and older. These units will remain affordable through a long-term HAP contract that extends the affordability component of the property for another 20 years.
The project involves the installation of energy-efficient appliances and new heating and cooling in the individual units, as well as improvements to the building's lobby, community room and on-site laundry facility. The HIT worked closely with PNC Real Estate and Developers Mortgage Corporation to finance the project.
‘As older downtown neighborhoods experience growth with the corresponding demand for housing, it's very important to preserve and update existing units whenever possible,’ says Stephanie H. Wiggins, executive vice president and chief investment officer for HIT. ‘The HIT's investment in 2101 South Michigan will help ensure that quality housing near Chicago's downtown Loop, with its employment opportunities and other amenities, remains available to individuals and families at all income levels.’
Over the past four decades, HIT has invested more than $400 million in 39 Chicago projects that have created or rehabilitated more than 9,000 housing units, of which more than 60% are affordable.
The AFL-CIO HIT is a fixed-income investment company that manages $4.6 billion in assets for more than 360 investors, which include union and public employee pension plans.
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