The situation
A well-respected developer local to the Chicago area approached Walker & Dunlop to facilitate the funding to replace an abandoned office building and several standalone restaurant buildings with much-needed multifamily housing. The local municipality established a Tax Increment Financing District for approximately 65 acres of land with the primary goal of promoting the redevelopment of underutilized property and eliminating blighted conditions. The largest obstacle was monetizing the Tax Increment Financing (“TIF”) provided by the local municipality while complying with FHA financing program requirements.
THE SOLUTION
The W&D HUD team, worked closely with HUD to successfully negotiate HUD compliance requirements into the municipality’s Redevelopment Agreement allowing the TIF reimbursement financing to be preapproved for full monetization for our client.
The Result
The partnership of all parties involved allowed for a successful closing of the construction loan which will finance the redevelopment of a blighted area into 301 state-of-the-art market rate and affordable multifamily units. Families and residents in the area will directly benefit from the project’s transformation of a deserted site and can feel confident in long-term affordable housing offered at the property.
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