Another Controversy For The Lathrop Homes Redevelopment
The team charged with redeveloping Lathrop Homes stands to lose millions in historic tax credits, the latest obstacle in the lumbering process to transform the landmark Chicago Housing Authority project. The National Parks Service says it put a hold on the tax credit application from Lathrop Community Partners, the JV headed by Related Midwest, because of concerns over a lack of details on the redevelopment and the scope of demolition planned for the site.
The move by the Parks Service stands to cost the JV millions, DNAInfo reports. This is significant as Lathrop Community Partners consistently touted the tax credits, which cover 20% of the projects rehab costs, as a linchpin of the project. Unless the group can satisfy the Parks Service's concerns, it could be on the hook for more money.
Lathrop Homes was added to the National Register of Historic Places in 2012, which put a halt to CHA's efforts to demolish the vacant structures. A 2012 report showed CHA collected federal subsidies on Lathrop's empty units, while its 18% occupancy rate was the lowest among the agency's holdings. There are also concerns from affordable housing advocates and community groups that there will not be enough set-asides for affordable and public housing with the redevelopment. [DNA]
