Earlier in August, the U.S. Department of Housing and Urban Development (HUD) announced the completion of a nearly $28 million Rental Assistance Demonstration (RAD) transaction with the Waukegan Housing Authority (WHA), to expand affordable housing options for low-income seniors in Waukegan, Illinois.
“The Biden-Harris Administration and HUD are committed to ensuring our country’s seniors can afford their homes and age with dignity – that means both building and preserving affordable homes in their communities,” said HUD acting secretary Adrianne Todman. “Today, we continue to deliver on this commitment, building and repairing nearly 100 homes for seniors in Waukegan, Illinois.”
Constructed in 1964, Ravine Terrace is a 98-unit, eight-story building that is in need of extensive repair and improvements due to its advanced age. The transaction funds the rehabilitation and reconfiguration of 56 studio apartments into 28 larger, one-bedroom homes; and the renovation of 42 one-bedroom homes. Additionally, 28 new homes will be constructed on a parcel of land near the existing property. Once completed, 98 homes will be available for seniors, in addition to new amenities and services, including a community room and an on-site leasing office allowing them to access support within reach.
“We are proud to announce our commitment to providing safe and affordable homes for seniors that are one of the most vulnerable populations facing housing insecurity today,” said deputy assistant secretary for multifamily housing programs Ethan Handelman.
The total construction cost for the project is $27.8 million, which represents approximately $284,000 per home. The project is financed through an FHA-insured mortgage, funds from the HOME Investment Partnerships Program and Illinois Housing Development Authority, and a 4% Low-Income Housing Tax Credits.
RAD was designed to help address the multi-billion-dollar nationwide backlog of deferred maintenance in the public housing portfolio and to stem the loss of affordable housing that could no longer be kept to decent standards.