Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $12.3 million loan for the new construction of Montclare Senior Residences of Lawndale, a proposed supportive living facility located in Chicago, Illinois.
Montclare Senior Residences will be a 100 percent backed by the Supportive Living Program, which Illinois developed as an alternative to nursing home care for low-income older persons and those with disabilities under Medicaid. The program combines apartment-style housing with personal care and other services, so residents can live independently and take part in decision-making.
The new facility will be built on a 2.5-acre lot in an urban neighborhood less than six miles from Downtown Chicago, and will feature one two-story building with a mix of 120 studio and one-bedroom residential units. It will serve an area where residents do not have the means to afford market-rate rents in properties of this type.
Love Funding Midwest Regional Director Bruce Gerhart secured the financing through the U.S. Department of Housing and Urban Development’s 232 loan program. The HUD program provided the development team with low-rate, non-recourse financing for the duration of construction and for a subsequent 40-year term. Funding was also provided by 9 percent low-income housing tax credits through the Illinois Housing Development Authority (IHDA), a Chicago Department of Housing loan, a TIF grant and an Illinois Department of Commerce & Economic Opportunity grant.
The development is being led by Philip I. Mappa, the managing member and founder of MR Properties, LLC and an experienced borrower with HUD experience. Mappa has been active in real estate development in the Chicago area for over 40 years and currently focuses on developing affordable senior housing.
The housing tax credits are being purchased by Cinnaire, a nonprofit real estate investment firm formerly known as Great Lakes Capital Fund. The firm, which manages more than $3.2 billion in equity investments and loans, has partnered with Gerhart and Love Funding on tax credit developments for the past 15 years.