Most residents of Waukegan’s 98-unit Ravine Terrace apartments will move into larger, fully renovated living spaces as the result of a deal between the Waukegan Housing Authority (WHA) and the U.S. Department of Housing and Urban Development (HUD).
A senior housing project, Ravine Terrace was built in 1964. WHA Executive Director Charles Chambers said the $27.8 million transaction is a godsend to the community through its combination of mortgage and federal income tax credit financing.
Part of HUD’s Rental Assistance Demonstration (RAD) program giving federal income tax credits to private investors provides the differential between the mortgage and the cost of the renovations. Chambers said the WHA’s buildings are in serious need of help.
“There is no way we could do it without RAD,” he said, “Our buildings are so old. HUD has no money for this without RAD, but those investors are happy to help. RAD lets us leverage private funding.”
The WHA will begin moving residents this fall to one side of Ravine Terrace near downtown Waukegan to begin extensive renovations on half the apartments, before people return and work is done on the other portion.
Rent for the residents will remain at no more than 30% of their monthly income, complying with HUD standards. Chambers said the moves will be limited to only one. Most tenants are 62 or older.
With 30 units now purposely unoccupied, he said the planned surplus will enable the WHA to make a substantial dent in the renovations without displacing residents, keeping potential inconvenience to a minimum.
Some current Ravine Terrace residents will have the opportunity to move to a new building in the 1700 block of McAree Road. Chambers said the apartments are similar in size and amenities to the renovated ones downtown.
“We know it’s hard for people to move, especially seniors,” he said. “We are being careful so they only have to move once. They don’t have to pay anything but their monthly rent. The new building will be (mostly) for people who have cars.”
None of the 98 apartments will stay as they are. Everything will be a gut renovation. Chambers said 56 studio units will be rebuilt into 28 larger, one-bedroom homes, and 42 already larger apartments will receive a complete makeover.
Remaining at 98 total apartments for seniors in Waukegan, Chambers the new building on McAree Road will contain 28 units on property owned by the WHA.
Common areas of Ravine Terrace like the community room, laundry room, a place to watch television and a vending room, will also get a gut renovation. Chambers said they will be completely new.
HUD Acting Secretary Adrianne Todman said in a press release Friday the combination of a Federal Housing Administration (FHA) guaranteed mortgage and the private tax credits is part of the government’s commitment to seniors.
“We are committed to ensuring our country’s seniors can afford their homes and age with dignity – that means both building and preserving affordable homes in their communities,” Todman said in the release.
Ethan Handelman, HUD’s deputy assistant secretary for multifamily housing, said in the release seniors are an important part of the agency’s focus on housing needs, along with low-income individuals.
“We are proud to announce our commitment to providing safe and affordable homes for seniors who are one of the most vulnerable populations facing housing insecurity today,” he said.
Chambers said the tax credits, which will give investors a 4% federal income tax deduction to the purchasers, are provided through the Illinois Housing Development Authority.
