CHICAGO, Aug. 9, 2017 /PRNewswire-USNewswire/ -- The AFL-CIO Housing Investment Trust (HIT) today celebrated the grand re-opening of the Kenmore Plaza Apartments, which recently completed an extensive $61 million rehabilitation. The 28-story, 324-unit building provides affordable housing exclusively to the elderly.
The rehabilitation work included reducing the operating costs of the building by installing durable and easy to maintain materials and energy efficient equipment, improving energy and water efficiency over the long term, as well as upgrading the current residential units, floor hallways, interior ground floor, and building exteriors and the construction of a small addition to the existing structure.
The HIT provided $22.9 million of financing through the purchase of Ginnie Mae construction loan certificates and a permanent loan certificate.
"The HIT investment is helping preserve a historically significant building that has been a major source of affordable housing for seniors in Chicago since 1973," said Rep. Jan Schakowsky, (Illinois-9). "I value the role that union pension capital is playing in preserving affordable housing."
Among those also attending the re-opening ceremony, were Eugene Jones, CEO of the Chicago Housing Authority; Lesyllee White, HIT's Managing Director of Marketing; Chang Suh, HIT's Chief Portfolio Manager; Matt Fiascone, President of Habitat Company; Rob Ferrino, CEO of Madison Construction; and Dan Burke, Director of the HUD Chicago Multifamily Hub.
"Chicago has been an important target for investments for the HIT," Ms. White said. "We are committed to addressing the affordable and community development needs of working families in the Chicago area by financing low-and moderate-income housing."
The property has a management team that works with seniors to ensure that they are living a quality lifestyle. Residents have views of Lake Michigan and the city skyline, and can easily access many of the city's sights.
The project generated approximately 110 union construction jobs.
The HIT has invested $515 million in 41 projects that have total development investments of more than $1 billion in Chicago since 1988. These projects have built or preserved 10,211 housing units, two thirds of which are affordable to working families, and created an estimated 6,900 union construction jobs. Total economic benefit to the area is estimated at more than $2 billion.
In June 2017, the HIT announced its newest investment in Chicago – a commitment to provide $60.4 million of pension capital funding for permanent financing and substantial rehabilitation to West Town Housing Preservation, a housing network of 318 affordable units across 68 properties. The $121 million project is expected to generate approximately 540 union construction jobs.
The buildings making up West Town Housing Preservation are located in the West Town community area which encompasses the neighborhoods of East Humboldt Park, Wicker Park, Noble Square, and Logan Square.
"We are continuing to expand the supply of affordable housing in Chicago, and create union construction jobs," said Ms. White. "Our goal is to enhance the quality of life for working families, while earning competitive returns for our pension fund investors."
The AFL-CIO Housing Investment Trust is an investment company registered with the Securities and Exchange Commission pursuant to the Investment Company Act of 1940. It manages $6 billion in assets for some 390 investors, which include union and public employee pension plans. Investors should consider the HIT's investment objectives, risks, and expenses carefully before investing. A prospectus containing more complete information may be obtained from the HIT by calling its Marketing and Investor Relations Department collect at (202) 331-8055 or by viewing the HIT's website at www.aflcio-hit.com. The prospectus should be read carefully before investing.
Job and economic benefit figures set forth in this release are estimates calculated using an IMPLAN input-output model designed by Pinnacle Economics, Inc. The model incorporates HIT project data. Economic benefits are shown in 2016 dollars.
Michael K. Frisby
SOURCE AFL-CIO HIT