Developer proposes 40-unit workforce housing project for district parcel, contingent on tax credits

Gorman & Company presented a proposal to develop 40 residential units on the district-owned parcel at 1227 Bell Avenue. Adam Gorman described a mixed townhome-style plan: 12 three-bedroom units and 28 two-bedroom units targeted at workforce or "missing middle" households. He said the firm would pursue a competitive 9% tax-credit application (referred to in the presentation as a 'WIDA 9%'), apply for an Affordable Housing Program (AHP) loan from the Federal Home Loan Bank of Chicago, and use a combination of deferred developer fee and low-income tax credit equity to close financing.

Gorman said the developer fee is capped by the tax-credit program and estimated at $25,000 per unit (about $1,000,000 total), some of which may be deferred into construction close to fill any sourcing gaps. He said tax-credit awards would be known in approximately a year (submission in December with results around June/July '27) and that construction would likely take about 18 months once financing and permits are in place. On board questions, he confirmed the 40-unit total and said stabilized vacancy in comparable projects is typically 3–5%.

Board members pressed for local market data and vacancy figures; Gorman said he would follow up with specific vacancy numbers for Washington School Apartments and provide further underwriting details. He also said if the 9% competitive tax-credit application is unsuccessful the team could pursue a 4% non‑competitive route in a later cycle, which could increase the financing gap and delay timelines.