Innovative Collaboration Helps Bring Affordable Living to Illinois Seniors - Harris Bank Procures Creative Financial Solutions for Alden Gardens of Bloomingdale.
At a time when the demand for affordable housing is greater than ever, Harris has utilized innovative financial solutions to assist borrowers like Alden to spur the development of affordable housing. More than a year after breaking ground, Alden Gardens of Bloomingdale - an affordable, supportive living community for seniors - will host Harris, the Illinois Housing Development Authority (IHDA), National Equity Fund, other project participants and local elected officials for an official ribbon-cutting ceremony today.
Alden Gardens of Bloomingdale offers housing and services for individuals 65 and older who are in need of an affordable, assisted lifestyle through Illinois' Supportive Living Program administered by the Department of Healthcare and Family Services. To help Alden fill a possible financing gap created by state budget shortfalls, Harris worked with the IHDA to provide a line of credit secured by Medicaid receivables. According to the IHDA and the Affordable Assisted Living Coalition, this is the first time this structure has been used in conjunction with Illinois' Supportive Living Program.
"In our current economy, we know we need to be flexible and willing to help structure one-of-a-kind financial arrangements," said Katherine Mazzocco, vice president of Community Development, Harris. Harris also provided more traditional financing arrangements, such as credit enhancement for $10.7 million in tax exempt bonds, bond underwriting and remarketing, an interest rate swap, and bond investment.
Other key participants included the IHDA, the National Equity Fund, DuPage County's Community Development Commission, Federal Home Loan Bank of Chicago, and Enterprise Community Partners, Inc. "IHDA is proud to have invested more than $13.2 million in tax exempt bonds, interest-free loans and tax credits to help leverage financing for this project," said Gloria L. Materre, Executive Director, IHDA.
According to the AARP and the U.S. Census Bureau, 20 percent of Americans will be over age 65 by 2030, causing an increase in demand for affordable supportive housing. "This project is an example of the public and private sectors - a developer, a government agency, a financial institution - coming together to pioneer a financial structure that will provide a beautiful, affordable home for more than 80 seniors," Mazzocco added.
"With 76 million Baby Boomers entering retirement over the next few years, the need for reasonably-priced senior housing is skyrocketing - and our current economy has only exacerbated this need," said Beth Demes, executive director, Alden Foundation. "It's been a pleasure to work with our partners on this project, and we are welcoming residents to the new facility."
To date, Alden Gardens has leased more than 50 apartments. Construction on the multi-million dollar project was completed in January. Amenities include housekeeping and laundry services, three meals per day, personal assistance with daily activities, and medication reminders.
About Harris - Harris is an integrated financial service organization providing more than 1.2 million personal, business and corporate clients with banking, lending, investing and wealth management solutions. The organization is a member of the BMO Financial Group (NYSE, TSX: BMO), which also provides corporate and investment banking services in the U.S. under the BMO Capital Markets name.
Harris® is a trade name used by various financial service subsidiaries of Harris Financial Corp.
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