06/01/10

Lighten-Gale Group is pleased to announce the closing on construction financing for Hancock House, an 89-unit mixed income development for seniors 62 and older to be located in Chicago's West Pullman neighborhood (34th Ward). The project's developer is Source Works Development. Brownlow, Belton, Sullivan, Arms, NFP, the non-profit arm of the Pentecostal Churches of the Apostolic Faith, is the project's sponsor and Source Works Management will be the property manager. The building is being constructed by general contractor JJ Duffy Co., with an emphasis on hiring local residents of the 34th Ward. Lighten-Gale Group was the finance consultant for the project. Hancock House will have 89 studio and one-bedroom apartments which will be restricted to the following income levels: 7 units at 15% AMI; 8 units at 30% AMI; 39 units at 50% AMI; 26 units at 60% AMI; and 9 units unrestricted.

This project, designed by architect firm Cox Ltd., is a single mid-rise building that includes a large atrium in the center of the complex. The “Atrium Elderly” concept provides an affordable housing product that uniquely meets the needs of a senior audience. Instead of apartments on both sides of a linear corridor, the atrium opens the building to natural light and landscaping. The corridor now becomes a “walk home” among neighbors with the friendliness and security of visual surveillance. The ground floor of the atrium is designed as an all-weather gathering place and all the centers of activity – fitness center, community room, office – are located at this level.

This project was made possible through the coordination of federal, state and local partners. LGG's work on the project included obtaining financing from the following sources: American Recovery and Reinvestment Act financing through both the Illinois Housing Development Authority (IHDA) and the City of Chicago, land donation from the City of Chicago, TIF funds from the 120th and Halsted Redevelopment Area, grant from the Chicago Low Income Housing Trust Fund, first mortgage from Harris NA, grant from the Federal Home Loan Bank of Chicago, energy grant from State of Illinois Department of Commerce and Economic Opportunity, rental assistance from the Chicago Housing Authority, and donation tax credit leveraged equity from William Blair.

The project is expeced to produce approximately 150 construction jobs for the local community. Construction is expected to take 16 months and units will be ready for occupancy in Fall 2011.