Love Funding Arranges $12.3M HUD Loan for Construction of Community in Chicago

by Jeff Shaw

CHICAGO — Love Funding, a lender based in Washington, D.C., has arranged a $12.3 million HUD loan for the construction of Montclare Senior Residences of Lawndale, a 120-unit supportive living community in Chicago.

The two-story community will be built on a 2.5-acre lot in an urban neighborhood less than six miles from downtown Chicago.

Supportive living is a sub-class of assisted living that is an alternative to skilled nursing for low-income seniors. It combines apartment-style housing with care services. The Department of Healthcare and Family Services uses a waiver to allow Medicaid to pay for services that are usually not covered without a Certificate of Need.

Bruce Gerhart, Midwest regional director for Love Funding, secured the financing. The HUD program provided the development team with low-rate, non-recourse financing for the duration of construction and for a subsequent 40-year term. Funding was also provided by low-income housing tax credits through the Illinois Housing Development Authority (IHDA), a Chicago Department of Housing loan, a TIF grant and an Illinois Department of Commerce & Economic Opportunity grant.

Philip Mappa, the managing member and founder of MR Properties LLC, is leading the community’s development. Cinnaire, a nonprofit real estate investment firm formerly known as Great Lakes Capital Fund, is purchasing the tax credits.

You may also like