Chicago-based Habitat, a leading U.S. multifamily developer and property manager, today announced it has received $4.5 million in low-income housing tax credits (LIHTC) from the city of Chicago for major renovations to Riverside Village, located at 13215 S. Indiana Ave., a fully affordable housing community with 258 units across 39 buildings in the city’s Riverdale neighborhood.
The awarded tax credits will help Habitat refinance the existing debt on the property and fund on-site rehabilitation work, including new, green plumbing and HVAC systems, upgraded unit interiors, improved accessibility in common areas, and exterior improvements to the on-site playground and basketball court. No residents will be displaced during the renovation, which is scheduled to begin in 2025 and be complete in 2026.
The Riverside Village project was among 13 LIHTC developments selected by Mayor Brandon Johnson and the Chicago Department of Housing (DOH) to be funded through the 2023 Qualified Allocation Plan. The chosen developments exemplify DOH's dedication to expanding access and choice for residents, ensuring Chicagoans’ right to quality, affordable, safe, and healthy homes.
“Riverside Village has a rich history on the South Side and has been home to thousands of long-term residents over the past 50-plus years,” said Charlton Hamer, Senior Vice President, Habitat Affordable Group.
“We are extremely grateful to Mayor Johnson and the city of Chicago for its dedication to funding important projects like this one through LIHTC, which will help ensure vibrant, energy-conscious, high-quality housing for current and future residents.”
Constructed in the late 1960s as a mix of rental and co-op units, Riverside Village was originally known as Eden Green. With the property’s multiple buildings falling into disrepair, Habitat purchased the community in 2007 and subsequently rehabbed the buildings using tax credits, conventional debt, and subordinate loans from the city of Chicago and U.S. Department of Housing and Urban Development.
Riverside Village offers one-, two-, three-, and four-bedroom units, allowing for a wide mix of residents. Habitat dedicates 95% of units to households earning 60% Area Median Income (AMI) or less and 5% to households earning 30% AMI.
Every two years, the city of Chicago publishes an updated Qualified Allocation Plan, which sets the rules for accessing federal tax credits - a crucial funding source for affordable housing development. LIHTC operates as a public-private partnership, where investors provide equity for low-income rental properties in exchange for a federal tax credit over 10-15 years. It remains the most significant resource for creating affordable housing in the U.S. today.