The 42-year debt, backed by the Government National Mortgage Association, will carry a floating interest rate no higher than 10%. An interest reduction program is being used because the building will serve tenants using the US> Department of Housing and Urban Development's Section 8 program. The city's department of housing also has reviewed the developer's financing plan.
Less than a mile away, Associates of Chicago Urban Day School, Ltd. is getting another $335,000 in a loan from the city's HOME fund to build 24 one-, two- and three-bedroom units at 5441-51 S. Michigan Ave. The loan is a 42-year, 0% loan while the underlying $3.5-million first mortgage carries a 6% rate over its 42-year term.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.