HUD Delivers Nearly $28 Million Transaction to Build and Preserve Affordable Housing for Illinois Seniors

HUD No. 24-200 HUD Public Affairs (202) 708-0685

FOR RELEASE Friday August 2, 2024

HUD Delivers Nearly $28 Million Transaction to Build and Preserve Affordable Housing for Illinois Seniors

Innovative transaction supports the construction and rehabilitation of 98 affordable homes for low-income seniors.

WAUKEGAN - Today, the U.S. Department of Housing and Urban Development announced the completion of a nearly $28 million Rental Assistance Demonstration (RAD) transaction with the Waukegan Housing Authority (WHA), to expand affordable housing options for low-income seniors in Waukegan, Illinois.

"The Biden-Harris Administration and HUD 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," said HUD Acting Secretary Adrianne Todman. "Today, we continue to deliver on this commitment, building and repairing nearly 100 homes for seniors in Waukegan, Illinois."

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 allowing them to access support within reach.

"We are proud to announce our commitment to providing safe and affordable homes for seniors that are one of the most vulnerable populations facing housing insecurity today," said Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman.

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.

About RAD

RAD was designed to help address the multi-billion-dollar nationwide backlog of deferred maintenance in the public housing portfolio and to stem the loss of affordable housing that could no longer be kept to decent standards. From the program's inception through July 1, 2024, the Rental Assistance Demonstration has facilitated more than $19.7 billion in capital investment to improve or replace over 220,000 deeply rent-assisted homes, most of which house extremely low-income families, seniors, and persons with disabilities.

Under RAD, projects funded under the public housing program convert their public housing assistance to project-based Section 8 rental assistance. Under Section 8, residents continue to pay 30% of their income towards rent and the housing must continue to serve those with very low and extremely low incomes, as was the case when the property was assisted through the public housing program. Residents must be notified and consulted prior to conversion, are given a right to return to assisted housing post-construction so that the same tenants can enjoy these newly preserved and improved apartments and maintain the same fundamental rights they had as public housing residents.

RAD Resources

More programmatic information is available at the RAD website. Data on RAD is available at the RAD Resource Desk.
View photo essays and read case studies where RAD is working to successfully preserve and improve public housing for low-income families.
Watch an educational video for public housing residents or those new to the RAD program.