FOR IMMEDIATE RELEASE: 1/12/2016
Denver, CO—Mercy Loan Fund (MLF), a leading Community Development Financial Institution (CDFI), announced that it has partnered with Heartland Housing, Inc. (HHI), a developer and manager of affordable housing, to preserve more than 100 affordable homes at Leland Apartments, located in the Uptown neighborhood of Chicago, Ill.
The 137-unit multifamily community houses people who have experienced homelessness and people with low incomes (50 percent of area median income (AMI) or less). The previous debt on the property had an interest rate of 7.74 percent. Due to this high debt service, the property had been struggling to maintain positive cash flow.
MLF purchased the existing note, reduced the interest rate, and re-amortized the outstanding loan balance over 30 years. The lowered interest rate will enable the property to save more than $48,000 annually. While MLF does not typically purchase existing notes, the CDFI is dedicated to providing innovative financing arrangements for projects for which conventional financing is not available or affordable.
“Because of Mercy Loan Fund, the Leland Apartments now has strong financial footing that will help ensure it remains quality, affordable housing for years to come,” said Michael Goldberg, Executive Director of Heartland Housing. “The Mercy Loan Fund team’s dedication and the creative solutions they came up with are outstanding in the field, and make them critical partners in social innovation.”
“We are honored to help preserve this bastion of affordable housing in Chicago, especially in partnership with an organization whose mission is so well-aligned with our own,” said Jason Battista, President of the Mercy Loan Fund. “Heartland Housing is dedicated to building communities by offering affordable housing and essential supportive services, and we are thrilled to help.”
The announcement comes as the affordable housing crisis continues nationwide. Approximately one in four renters pay more than 50 percent of their income on housing, and according to the National Low Income Housing Coalition’s report Out of Reach, someone living in Cook County would have to make $21.02 per hour in order to afford a two-bedroom apartment at fair market rent.
About Mercy Loan Fund
For three decades, Mercy Loan Fund has focused exclusively on funding affordable housing and essential community infrastructure projects that support affordable housing. By collaborating with socially-responsible developers, Mercy Loan Fund has helped finance the development of single and multifamily homes for rental and homeownership. These developments help a variety of people including low-income families, the working poor, seniors, farm works, people who have experienced homelessness, and people with special needs. Mercy Loan Fund is a subsidiary of the affordable housing nonprofit, Mercy Housing. For more information, please visit www.mercyloanfund.org.
About Heartland Housing, Inc.
Heartland Alliance, one of the world’s leading anti-poverty organizations, works in communities in the U.S. and abroad to serve those who are homeless, living in poverty, or seeking safety. It provides a comprehensive array of services in the areas of housing, healthcare, jobs and justice – and leads state and national policy efforts that target lasting change for individuals and society. For more information, visit www.heartlandalliance.org.
Heartland Housing, Inc. is the community housing development organization within the Heartland Alliance. It facilitates the development of people through the preservation and creation of affordable and supportive housing with a priority in meeting the needs of homeless persons and families, very low-income individuals, and persons with chronic disabilities. For more information, visit www.heartlandhousing.com