HIT Invests $16.3 Million to Renovate Paul G. Stewart Phase III in Chicago, Modernizing 180 Multifamily Rental Units
CHICAGO, IL – An aging residential tower is getting major repairs that will bring renovated affordable housing to Chicago’s South Side Bronzeville community.
The AFL-CIO Housing Investment Trust (HIT) is investing $16.3 million in the substantial renovation of Paul G. Stewart Phase III by purchasing bonds and notes issued by the City of Chicago. The $31.4 million project will rehabilitate and maintain affordability of 180 multifamily rental units for residents 62 or older whose incomes are at or below 60% of area median income. The project sponsor is Peoples Consumer Co-Operative (PCC), an Illinois not-for-profit corporation that was organized in 1937 as a cooperative buying club for African-Americans to purchase quality goods and services.
Paul G. Stewart Phase III is a 20-story tower that was constructed in 1976 as part of the Paul G. Stewart Campus, named after one of the founders of PCC who was also the second African-American to become a Certified Public Accountant in Illinois. The HIT provided financing in 2007 for the renovation of Phases I and II. The repair work on Phase III is expected to create approximately 145 union construction jobs.
"The HIT is investing union capital to help gain a competitive return for its investors while increasing affordable housing and creating jobs in the Chicago area and in communities across the country,” said HIT Director of FHA Financing, Terrance Pearson. “Our investment dollars are often the critical funding that makes a project viable and the units more affordable. We are proud of our role in projects like this.”
Chicago Treasurer Kurt Summers noted, “Investing in projects like Paul G. Stewart highlights the HIT’s dedication to neighborhood development and to job creation throughout our City. I applaud the HIT’s continued commitment to investing in neighborhoods throughout Chicago and am pleased to support the innovative work the HIT is able to accomplish.”
Paul G. Stewart Phase III is the HIT’s 44th project in the Chicago area since 1988. The HIT has invested $473 million in projects with total development investment of $1 billion, creating 10,435 housing units, an estimated 6,675 union construction jobs, and over 13,145 total jobs across industries in the community. These projects have generated an estimated $2.0 billion in total economic benefits, and $748 million in total personal income including salaries and benefits.*
* Figures provided by Pinnacle Economics and the HIT are estimates calculated using an IMPLAN input-output model based on HIT project data and secondary source information. Data are current as of January 31, 2017 and in 2015 dollars.