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Council backs change in ownership for 60‑unit Lot 1 affordable project; Housing Authority of Cook County to be sole general partner
Summary
The council approved a resolution supporting a proposed ownership change for a 60‑unit affordable housing project at 504 South Boulevard so the Housing Authority of Cook County will become sole general partner; staff said tax credits were already secured and construction must begin in 2025.
The City Council on May 27 voted unanimously to support a change in ownership of the Lot 1 affordable housing project at 504 South Boulevard that would make the Housing Authority of Cook County (HACC) the exclusive general partner, a step council members said will keep the project moving toward construction.
Council members were asked to endorse Resolution 53‑R‑25, which approves the proposed change. Community Development Director Sarah Flax told the council that the project had already secured Low‑Income Housing Tax Credits; delays in the project were caused by a tenant holdover. Flax said the project is essentially ready to break ground other than finalizing ownership paperwork.
"Peral has already secured tax credits, and they were secured, probably almost 2 years ago," Flax said. She explained that in tax‑credit developments a 1% general partner handles day‑to‑day management and that the proposed change would move the general‑partner role solely to HACC; Pearl would continue as the developer and guarantor through construction.
Johanna/Joanna Casanova, representing the development team, confirmed the project has an allocation swapped into 2025 and that construction must begin in 2025 to meet tax‑credit timing. HACC Executive Director Danita Childers told the council that changing the ownership structure now would require restarting parts of the process and that HACC and partners are working to close with investors.
Council members discussed whether HACC could partner with local nonprofit developers, but Corporation Counsel Alex Ruggie said changing ownership at this stage would be legally and procedurally complex because the city already approved the sale and the project is under contract. Council members who spoke in favor said the project adds 60 units for households at low AMI levels and will be all‑electric in compliance with the city's CARP goals.
Vote: Resolution 53‑R‑25 passed 8–0.
