The U.S. Department of Housing and Urban Development (HUD) announced the completion of a nearly $28 million Rental Assistance Demonstration (RAD) transaction with the Waukegan Housing Authority (WHA). This initiative aims to expand affordable housing options for low-income seniors in Waukegan, Illinois.
“The Biden-Harris Administration and HUD are committed to ensuring our country’s seniors can afford their homes and age with dignity – that means both building and preserving affordable homes in their communities,” said HUD Acting Secretary Adrianne Todman. “Today, we continue to deliver on this commitment, building and repairing nearly 100 homes for seniors in Waukegan, Illinois.”
Ravine Terrace, constructed in 1964, is a 98-unit, eight-story building requiring extensive repairs due to its advanced age. The transaction will fund the rehabilitation and reconfiguration of 56 studio apartments into 28 larger one-bedroom homes and renovate 42 one-bedroom homes. Additionally, 28 new homes will be constructed on nearby land. Once completed, there will be 98 homes available for seniors along with new amenities such as a community room and an on-site leasing office.
“We are proud to announce our commitment to providing safe and affordable homes for seniors that are one of the most vulnerable populations facing housing insecurity today,” said Deputy Assistant Secretary for Multifamily Housing Programs Ethan Handelman.
The total construction cost is $27.8 million, approximately $284,000 per home. The project is financed through an FHA-insured mortgage, funds from the HOME Investment Partnerships Program and Illinois Housing Development Authority, and four percent Low-Income Housing Tax Credits.
RAD was designed to address the nationwide backlog of deferred maintenance in public housing and prevent the loss of affordable housing. Since its inception through July 1, 2024, RAD has facilitated over $19.7 billion in capital investment to improve or replace more than 220,000 deeply rent-assisted homes.
Under RAD, projects funded under public housing convert their assistance to project-based Section 8 rental assistance. Residents continue paying 30% of their income towards rent while maintaining fundamental rights they had as public housing residents. They must be notified prior to conversion and have the right to return post-construction.
More information about RAD is available on its website including data at the RAD Resource Desk.
