A number of affordable senior housing developments are under construction in Lake County that are designed to house residents who meet certain age and income thresholds, and address a growing deficit in homes available for the county’s older population.
New rental housing, created with senior citizens in mind, allows residents to stay and age in their communities, according to Brenda O’Connell, the county’s community development administrator.
As the population ages, the pace of new senior housing construction is inadequate, a Lake County housing analysis revealed in October, projecting the county will need at least 1,200 more affordable units for seniors with incomes under $50,000.
New affordable housing developments in the county are made possible by federal grants and tax credits.
Lake County receives annual funds from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) and HOME programs in an effort to support community development of all types.
Over $2.7 million in CDBG funding was provided to the county for the 2022 fiscal year to be administered for projects such as housing development, public facilities or infrastructure, public services and more, primarily for low- and moderate-income households.
HOME funding, through which the county received more than $1.8 million, can only be used to support housing projects.
When the county invests grant funds into affordable housing projects, it helps leverage millions more in funding from the state, O’Connell said, which was the case for an affordable senior housing development in Island Lake.
Lincoln Avenue Capital, a Chicago metro-area development company, received $450,000 in HOME dollars from Lake County for the development of the Beech Street Senior Lofts in Island Lake.
Having the HOME funding helped the developers secure low-income housing tax credits administered by the Illinois Housing Development Authority.
Tax credits, O’Connell said, are one of the most common vehicles for creating affordable housing in the U.S. by issuing them for the acquisition, rehabilitation or new construction of rental housing.
The apartments in Island Lake have been under development since the summer. One-third of the units will be set aside for low-income seniors, with tenant rents set at a maximum of 30% of their income.
Hume An, vice president of Lincoln Avenue Capital, said Island Lake was selected for the senior development because of the strong economic characteristics and real estate activity in the community.
“(The county) is thrilled to see this important community asset be developed to meet the housing needs of seniors,” O’Connell said.
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Housing density on the west side of the county is not as robust as the east, O’Connell added, which makes developments, particularly those geared for the aging population, “good news.”
Lincoln Avenue Capital is also in pre-closing on another senior housing development in Lake Villa, according to An.
Another senior apartment project received CDBG funds from the county. An income-restricted development in Mundelein began putting the pre-constructed unit modules in place on site in early November.
The village didn’t have a housing product that was both reserved for a certain age group and with target income restrictions, according to Taylor Wegrzyn, senior planner for the village of Mundelein.
The housing project fills the need for more senior housing, but also aligns with village plans for transit-oriented developments, with this apartment complex being built adjacent to the downtown and in a walkable environment.
“If you’re putting in seniors and they don’t have a car, they’re able to just walk to the grocery store. That’s great,” Wegrzyn said. “That’s fewer services that they then need to seek out.”
Even though these new builds were included as a part of the countywide analysis, O’Connell said all new housing construction helps address the deficit.