Chicago Real Estate Daily recently reported that the next phase of the redevelopment of the Robert Taylor Homes is moving forward. It involves the construction of 71 new mixed-income rental units in 3- and 6-flat buildings near 47th and Calumet and 43rd and Michigan.
The project will cost $28.2 million, or about $397K per unit. Financing includes a variety of subsidies ranging from an essentially zero-cost land purchase, $3 million in TIF funds, $5.2 million in tax-credit equity and an $8.7 million loan from the CHA.
A year ago we visited a Noah Properties condo project at 2431 W Belmont where 3-bedroom, 2-bath units with garage parking in 6-flat buildings sold in the high $250s. Noah Properties paid market price for the land, delivered units with high-style finishes, and was presumably able to reap a profit on the development.
One doesn’t have to look very hard in the Bronzeville area to find relatively new construction 3-bedroom and larger condos selling for less than half of the cost of the new affordable units.
How long can Chicago continue to afford to spend $400K (round numbers) and up to develop affordable housing?