Dozens of Kendall County seniors living on a limited budget will have new affordable housing opportunities in spring 2012.
Construction is set to start on the 60-unit Diamond Senior Apartments of Oswego as a result of the investment of the Illinois Housing Development Authority (IHDA), the state’s housing finance agency. IHDA financed $1.6 million in federal housing tax credits on behalf of the administration of Governor Pat Quinn to build the apartments. The development also will provide a boost to the local economy by creating an estimated 114 quality jobs, including construction jobs.
The tax credits that IHDA provided leveraged an additional $13.7 million in private equity to construct Diamond Senior Apartments of Oswego at White Oak Street and Lewis Drive. The Illinois Department of Commerce and Economic Opportunity provided a $171,000 grant to help equip the development with Energy Star appliances and an energy-efficient roof.
“On behalf of Governor Quinn, the Illinois Housing Development Authority (IHDA) is proud to play a significant financial role to make sure Kendall County seniors have safe and decent housing options in their community,” said IHDA Executive Director Mary R. Kenney. “Diamond Senior Apartments of Oswego demonstrates how the federal housing tax credit program works as an effective financing tool to create affordable housing and quality jobs in Illinois.”
IHDA awards federal Low-Income Housing Tax Credit (LIHTC) financing to developers of qualified developments. This the most productive affordable housing program in the nation, producing more than 2 million affordable rental housing units nationwide – and more than 60,000 in Illinois – since its creation by Congress in 1986.
The credits infuse private investment in affordable housing when sold to investors in qualified affordable housing developments. This reduces the debt that the developer would otherwise have to borrow. As a result of the lower debt, a tax credit property can offer lower rents. Developments financed with tax credits serve households earning 60 percent or less of the area median income with rents restricted so rents don’t exceed 30 percent of household income.
Developed by 3 Diamond Development, LLC, the development will feature six studio, 44 one-bedroom and 10 two-bedroom units. Residents will have access to a community room, library, beauty shop and exercise room. Monthly rent with utilities will range from $384 for very low-income residents to $935 for the two-bedroom apartments. To qualify for the affordable apartments, applicants must earn at or below 60 percent of the average median income in Kendall County, or $38,220 for a one-person household. For more information, contact (847) 677-7206 ext. 1009.
“IHDA’s financial support was instrumental to getting the construction of Diamond Senior Apartments of Oswego off the ground,” said Ben Porush, director of operations, 3 Diamond Development, LLC. “These apartments will provide Kendall County seniors with quality housing, so they can afford to remain in the community.”