Freeport, Illinois — The Housing Authority of the City of Freeport (HACF) closed on the construction financing for the Brewster-Hosmer RAD Conversion on December 30, 2016.
For years, government operating subsidy and capital improvement funds for public housing have diminished.
Converting public housing subsidies to Project-based Housing Choice Vouchers through the HUD Rental Assistance Demonstration (RAD) provided an opportunity to put the properties on a stronger financial footing for the long run, recapitalize the properties, and provide funding for substantial capital improvements.
The Illinois Housing Development Authority provided resources to the project including Tax Exempt Bonds, Donation Tax Credits, Low Income Housing Tax Credits and a Risk Share Loan to fund the project.
HACF currently owns and manages 446 public housing units serving low income families.
These include the Parkside and Westview public housing properties and now the Brewster and Hosmer Apartment as Section 42 Low Income Housing Tax Credit Properties with Project Based Vouchers. The residents at Brewster and Hosmer will continue to pay thirty percent of their adjusted gross income in rent, as they had when they were public housing.
The Brewster Apartments, built in 1965, and Hosmer Apartments, built in 1971 are both in need of unit and common area upgrades, as well as require code compliance and structural upgrades. Unmarketable efficiency apartments in Brewster will be reconfigured into one bedroom units.
Other rehab work includes kitchen layout reconfigurations, new cabinets, fixtures, vinyl flooring, tenant storage areas, fire code and handicapped accessibility compliance work, structural work, and upgrades to mechanical systems.
Mr. Larry Williams met with the residents of both Brewster and Hosmer on multiple occasions to get resident feedback for the rehab work and to provide updates during the predevelopment process. Current residents will be relocated to other apartments within their building with HACF responsible for the moving process.
“This initiative is designed to improve the lives of residents. The HACF has always been about the residents. Some think they don’t deserve upgrades,” Mr. Williams shared. This conversion and the included rehab work positively affects not only the current residents but also improves the buildings for low-income families in the years to come.
Mr. Larry Williams notes that this recapitalization will also benefit the local economy due to the construction rehab work in excess of $8,000,000.
For More Information, please contact Larry Williams, HACF Chief Executive Officer, at 815-232-4171 Ext 1015.