A Chicago property developer accused by some of pricing out low-income tenants is working with the city to provide more affordable housing units, DNAinfo Chicago reported.
The new agreement between FLATS Chicago and the city of Chicago calls for the property developer to provide 58 total affordable housing units in four of its properties in the Uptown and Edgewater neighborhoods until 2023. As part of the $4.3 million partnership, the city will subsidize the units for low-income tenants as part of the Low-Income Housing Trust Fund.
Under the arraignment, tenants with incomes less than $15,200, or 30 percent of the median income in Chicago, will pay up to $255 as well as utility costs for a studio apartment, and the city will subsidize the remaining rent amount. The monthly rent for FLATS Chicago studios is typically $800, the news site reported.
“FLATS Chicago is dedicated to being a community partner through responsible development and neighborhood initiatives,” Jay Michael, a partner of the real estate company, said in a statement. FLATS Chicago's goal “is to redevelop dilapidated, mismanaged, unsafe, and financially distressed assets into high quality and authentic environments at approachable rents,” he added.
The subsidy program is expected to open up its application process at some point this month. Peter Strazzabosco, a spokesperson for the city's Housing and Economic Development Department, said the effort will place a focus on helping tenants who were uprooted from buildings redeveloped by FLATS Chicago.
Some of the FLATS Chicago buildings participating in the program were previously single room occupancy buildings, or SROs, which often provide housing for some of the city’s poorest and most vulnerable residents who have limited housing options. Strazzabosco said the rental subsidy effort is “a way to help maintain income diversity.”
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