The developer of Woodridge's new senior housing developer should be selected by the end of May, according to village officials.
Six proposals have been submitted from developers for a senior housing development planned for the Pine Ridge development along Janes Avenue, according to Jack Knight, management analyst for the village.
Now a selection committee of two plan commissioners and two village board trustees will review and identify a "short list of qualified developers" to share with the village board. The committee will conduct interviews and/or site visits and then make a final recommendation to the village board.
The village purchased 3.4 acres of the Pine Ridge apartment complex in Jan. 2011 with the intention of turning the property into senior housing. The 32-unit apartment building that sat on the land was demolished this spring.
The rest of the apartment complex will be renovated into 123 condominiums, per an agreement between the village and the complex owner.
The Woodridge village board voted to move forward with the project in July.
Market-rate vs. low-income housing tax credit apartments
While the village had already purchased the land, the village board decided to commission a study on senior housing in June. The study focuses on the current state of the senior housing market and how to best market Woodridge's site to developers.
To make the development financially viable, the study recommended a mix of low-income housing tax credit and market rate independent living apartments.
There are several types of senior housing to cater to seniors of different income levels and assistance needs. Independent living suits tenants who require little to no assistance in daily activities. Assisted or supportive living suits tenants who do.
How much the tenant pays to live in the facility depends if the apartment is market rate or low-income housing tax credit.
In a market rate apartment, rent is determined by the market (what people are willing and able to pay), which tenants pay in full. Tenants in these apartments typically make more than $35,000 per year.
In a low-income housing tax credit facility, there is a maximum rent a developer can charge his or her tenants. This amount is set by the Illinois Housing Development Authority. The tenants in these apartments typically make $10,000 to $35,000 per year.
In exchange for capping rent, the developer receives a tax credit, which can be purchased by another bank or company. The developer uses that credit to offset the money he or she would otherwise receive to finance the facility.
The mixed-income facility would offer studio and one- or two-bedroom apartments. There might be amenities such as a community room, library/computer room, exercise room and some scheduled activities. Meals may or may not be offered.
Anywhere from 10 to 60 percent of the apartments would be market rate. The rest would be low-income housing tax credit.