Vernon Hills senior project seeks extension
A delay in state review has prompted the proposed developer of affordable senior rental housing and an assisted care facility to ask for a change in its agreement with Vernon Hills.
Pathway Senior Living LLC hasn't given up on a fall start date for a senior apartment building and adjoining supported living facility south of Route 60 and east of Aspen Drive, but several things have to fall into place quickly.
The village board during its regular meeting Tuesday will consider changing the memorandum of understanding to give Pathway more time to provide evidence it has received approval for tax credits needed to make the $40 million to $48 million project viable.
The meeting begins at 7 p.m. at village hall, 290 Evergreen Drive.
Vernon Hills can cancel the agreement if Pathway didn't provide written evidence by June 30 that the tax credits have been approved.
The process is taking longer than in previous years, according to Bob Helle, principal with Pathway. Village staff has recommended the date for tax credit approval be extended.
Pathway is among about 60 entities in Illinois and one of four in Lake County seeking nearly $72 million in tax credits, according to the Illinois Housing Development Authority, which reviews the applications.
Low-income housing tax credits, authorized by federal law in 1986, are the chief mechanism that makes building low-income rental housing feasible for developers.
Investors in the credits get a 10-year federal income tax benefit in exchange for cash for new construction or restoration projects. That allows rents to be kept low, according to IHDA.
Applicants are ranked according to various criteria, including community support and commitments for financing.
Affordable senior housing has been a village goal for 15 years. The village purchased property at Atrium Drive and Phillip Road in hopes of snaring a new Cook Memorial Library, which is proceeding.
Victory Centre at Vernon Hills would be built on adjoining property. It is proposed to include 231 apartments and supportive living units in two, five-story buildings. Rents would start as low as $400 a month.
The project is a joint venture between Pathway, Lake County Residential Development Corp., a not-for-profit group, and Jacobs Homes Inc.