HUD Provides $28M for Redevelopment of Ravine Terrace Affordable Community in Waukegan, Illinois

by Jeff Shaw

WAUKEGAN, Ill. — The U.S. Department of Housing and Urban Development has completed a $28 million Rental Assistance Demonstration (RAD) transaction with the Waukegan Housing Authority (WHA) to expand affordable housing options for low-income seniors in Waukegan, a suburb north of Chicago.

Constructed in 1964, Ravine Terrace is a 98-unit, eight-story building that is in extensive need of repair and improvements due to its advanced age. The transaction funds the rehabilitation and reconfiguration of 56 studio apartments into 28 larger, one-bedroom homes; and the renovation of 42 one-bedroom homes. 

Additionally, 28 new homes will be constructed on a parcel of land near the existing property. Once completed, 98 homes will be available for seniors, in addition to new amenities and services, including a community room and an on-site leasing office.

The total construction cost for the project is $27.8 million, which represents approximately $284,000 per home. The project is financed through an FHA-insured mortgage, funds from the HOME Investment Partnerships Program and Illinois Housing Development Authority, and a four percent Low-Income Housing Tax Credits.

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