The AFL-CIO Housing Investment Trust helped to finance the $25 million substantial rehabilitation of Lake Village East, a mixed-income apartment complex in the Kenwood community of Chicago. Lake Village East consists of 218 units with one high-rise building and two adjacent three-story walk-up buildings as well as 160 off-street parking spaces. Neighborhood amenities include access to transportation, retail services, healthcare and educational institutions.
The buildings were originally constructed in the early 1970s and the rehabilitation of the property has modernized the complex. Work included the replacement of the original heating and the water distribution systems, installation of new roofs and new windows, modernization of elevators, a remodeling of the first floor of the high rise, and substantial interior work to each unit.
The HIT provided $14.3 million in financing through the purchase of Ginnie Mae construction loan certificates and a permanent loan certificate for the rehabilitation of Lake Village East in June 2015. The HIT worked closely with the mortgage lender, Draper & Kramer, to structure the financing for the project. The general contractor was Linn-Mathes, Inc.
Lake Village East has operated very successfully as a mixed-income development and the HIT financing has helped to preserve the existing affordability of each unit. Approximately 50% of the units are Section 8 housing, 20% of the units are for Low-Income Housing Tax Credit-qualified residents, and 30% of the units are restricted to low-income households earning no more than 60% of area median income.
Work on the project generated an estimated 72 union construction jobs.*
*Job and economic impact figures are estimates calculated using IMPLAN, an input-output model, based on HIT project data. The data is current as of March 31, 2020. Economic impact data is in 2019 dollars and all other figures are nominal.
This page provides information about a project or projects financed by the HIT which may or may not be reflective of other financed projects or refer to an asset currently held in the HIT’s portfolio. Investors should consider the HIT’s investment objectives, risks, charges, and expenses carefully before investing. This and other information is contained in HIT’s prospectus, available at aflcio-hit.com or by calling 202-331-8055. The prospectus should be read carefully before investing.