Built in 1969, Island Terrace has not undergone a major renovation in its 50-year history. The building is a 21-story high rise of concrete frame and steel construction with concrete floors. Its 20 residential floors all have the same floor plan with twelve units per floor, the breakdown of unit types is as follows:
- 80 one-bedroom units (four per floor)
- 120 two-bedroom units (six per floor)
- 40-three bedrooms (two per floor)
About half of the units received kitchen and bath upgrades almost ten years ago, but a number of the units still have their original finishes. Some of the planned renovations for this project include:
- Replacing unit plumbing and electrical systems
- Installation of new windows
- Addition of central air conditioning
- Improvements to unit and common area exhaust and ventilation
- Replacement of unit doors and frames
- Addition of new appliances
- Expansion of community room space and increased accessibility for the office
POAH plans to renovate and preserve all 240 units as affordable up to 80% of AMI using income averaging, underwritten by a combination of 4% LIHTC, 9% LIHTC, and soft funding from IHDA and the City of Chicago, as well as a 221d4 loan from HUD. The building is currently without any income restrictions, though it benefits from a HAP contract on 88 units, and Chicago Low Income Housing Trust Fund subsidy on 11 units. POAH will add rental assistance to an additional 44 units, the last subsidy to be transferred from the 504-unit HAP contract at the former Grove Parc Plaza Apartments, preserving all 504 units as affordable, with the majority in Woodlawn.
It is anticipated that the overall costs of the project will be between $20 and $25 million due to the extensive work that needs to be done on updating the buildings systems and the large number of units.
Island Terrace is part of POAH’s decade long work in Woodlawn, where alongside the City, HUD and IHDA it has preserved affordable housing and catalyzed investments in retail, homeownership, schools and services. The preservation of Island Terrace ensures that this important housing in the neighborhood will remain affordable and vibrant, even as the neighborhood sees new outside investment and an increase in rents. It will advance DOH’s mission by preserving access to and housing choices in the Woodlawn neighborhood and ensure that Island Terrace remains affordable, safe and healthy.
The preservation of Island Terrace will advance racial equity in Chicago by coordinating housing with neighborhood amenities, improving engagement and management as well as resident outcomes and wealth building. POAH will also work to make sure BIPOC contractors and consultants benefit from the renovation project.
As of January 2022, the project’s closing date is anticipated to be in the Fall of 2022. The development team is currently in the process of determining the project’s final scope and are working with consultants to learn more about the building’s strengths and to ensure that high priority improvements are included.