Single-Room Occupancy (SRO) Preservation Update
When Heartland Housing collapsed in 2023, hundreds of Edgewater and Uptown neighbors were at risk of losing their homes. Heartland Housing’s portfolio included two affordable buildings in the 48th ward, the San Miguel Apartments (907 W Argyle) and Hollywood House (5700 N Sheridan Rd). Since the collapse, Alderwoman Manaa-Hoppenworth and team have been working closely with the Department of Housing and housing advocates including ONE Northside and Voice of the People to ensure both buildings remain affordable, and that living conditions are improved after years of neglect.
Last week, after extensive negotiations, the San Miguel Apartments successfully transferred ownership to the Chicago Metropolitan Housing Development Corporation (CMHDC), a non-profit housing developer. Alderwoman Manaa-Hoppenworth was involved in the negotiations, advocating for preservation of deep affordability and zero resident displacement. Under the new ownership, 53 units will remain affordable (18 units at 50% AMI and 35 units at or below 80% AMI), and 18 units will transition to market-rate to stabilize the portfolio. CMHDC will be applying for an increase in the number of Section 8 vouchers from 14 to 23, and they have verbally committed to using the vouchers to provide deeper affordability on the affordable units. No existing residents are to be displaced for the 18 market-rate units because the San Miguel currently has 18 vacant units in the building. The deal includes $1,750,727 in debt forgiveness. The forgiveness of the loan allowed the developer to maximize Donation Tax Credits issued by IHDA that allow for approximately $3 million of improvements in the first three years of ownership. The San Miguel is a four-story brick building that houses a total of 71 residents which consists of 40 studios, 20 one-bedroom, and 11 two-bedroom units.
Last year, Hollywood House was purchased by Full Circle, a non-profit affordable housing developer. Full Circle’s mission is to expand access to quality affordable housing through preservation and development. The 48th Ward Office is working closely with Full Circle on the ownership transition and their renovation plans to improve the quality of life for residents. Full Circle is currently applying for funding for a major building rehab. Hollywood House has 197 units consisting of 43 studios, 122 one-bedroom, and 21 two-bedroom units. CHA provides rental assistance to 51 units to assist seniors age 62+ years.
Our SRO preservation work doesn’t end here. We are currently working with DOH and advocates to preserve two more SROs currently at risk in the 48th Ward. A big thank you to all of the housing advocates who fought hard to save San Miguel Apartments and Hollywood House in the 48th Ward and continue to fight for the preservation of affordable housing in our communities!