Cook County reapproves $250,000 revolving loan terms for 'Heights' multifamily project

The Cook County Board on Feb. 25 reapproved terms for a $250,000 Cook County revolving-loan to support a 36‑unit multifamily project known as the Heights after the borrower’s lead lender and financing structure changed.

Gary (last name not specified) and county revolving loan committee members told the board that the county’s loan will mirror the lead bank’s terms. The board authorized interest‑only payments for the first two years, a variable interest-rate structure for that period, a 25‑year amortization schedule and acceptance of a possible balloon payment at the bank’s option. The county agreed to an intercreditor subordination agreement that defers county principal payments in the event of a monetary default by the lead bank; county counsel explained that the county would be in second or third lien position behind the lead bank and other senior lenders.

The committee summarized the project capital stack: the lead bank (loan figures cited in the meeting), Northland Foundation funds, $250,000 from Cook County, a $200,000 lender loan and other local sources; grant and equity contributions make up roughly 48% of project financing. The board’s vote to approve the revised loan terms and the intercreditor agreement was unanimous.

A revolving loan committee member who attended noted the county’s exposure is limited and that committee due diligence supported the recommendation. The board authorized county staff to sign the intercreditor subordination agreement and move forward under the revised bank terms.