With 19 of the units – 20% -- set aside for tenants who would receive rent subsidies, the authority's Friary at Mayslake would meet its mission of providing more affordable housing for residents of the county, officials say. Besides the idea of affordable housing next to $700,000 homes in their suburb, residents questioned the economics of the deal at a recent plan commission meeting.

Housing authority president John E. Day says estimates put construction costs at $12 million for turning the 110,000-sf friary modeled after a German castle into 22 studios, 12 efficiencies, 55 1-bedroom and four 2-bedroom apartments with rents ranging from $3,300 to $4,400 a month. The subsidized units would rent for $2,000 to $3,000 a month, Day says. Costs related to issuing tax-exempt revenue bonds to pay for the project would add more than $6 million, Day adds. The housing authority would buy the property at 3400 St. Paschal Dr. for $1 from the DuPage County Forest Preserve District, which owns the surrounding 90 acres.

Based on the authority's rent projections and predicted operating expenses of 54% of income, the property would generate a net operating income of $1.95 million, before debt service. However, whether renovation can be done at $162 per sf, as well as the authority's lack of a track record in running an assisted living facility, were questioned by two plan commission members.

"It will take a tremendous effort to bring it up to where it should be," concedes architect Terrence Russell.

The housing authority was one of 13 groups to answer the forest preserve district's request for proposals, and emerged the winner among four finalists.

While proponents of the friary plan point to a potential market of 35,000 seniors in the Oak Brook area, Elk Grove Village officials admit there is a need there, too. However, trustees have asked for projected cost figures on the development's impact on village services, such as ambulance calls, as well as a counterproposal on a land donation.

"Your housing, in all candor, will put a strain on our services," Village President Craig Johnson told Alexian Brothers officials at a recent meeting. "They're an asset to Elk Grove, but they're a for-profit entity, too."

Alexian Brothers has sought to have a 10% land donation requirement waived because residents of its facility would not have use for schools and parks.

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