Are you looking to buy a multi-unit building, or possibly a condominium or townhome unit?
Schaumburg-based Alteza Group LLC is planning to build 23 housing units around North Lawndale – two two-flats, five three-flats and one four-flat on eight lots scattered throughout the neighborhood. And since Alteza launched its project website in February, you can fill out an intake form to access a pre-sale offer before multi-unit buildings, plus possible condominium or townhome units, hit the market.
The multi-unit buildings are one private developer’s part of the City of Chicago’s Missing Middle Housing Initiative, which aims to build market-rate, middle-density housing – something in between apartment buildings and single-family homes – in neighborhoods where it no longer exists, starting on the West Side.
The pilot initiative was launched in North Lawndale to revitalize a community with hundreds of vacant lots in the hope that missing middle housing will help repopulate North Lawndale and enhance the community.
While there are six developers building missing middle housing for the city initiative, those interested in purchasing one of Alteza’s can fill out an intake form on https://www.missingmiddlechicago.com/. If a buyer qualifies, Alteza will schedule a virtual meeting to discuss their goals and choices. Then, the potential buyer will get pre-qualified through Alteza’s attorneys and lenders. When a buyer is approved, Alteza will collect a non-refundable deposit and draw up a pre-sale agreement.
Alteza told Austin Weekly News that about 10 people have filled out the intake form so far, but the developer is looking for additional interested locals.
Alteza said it wants to give families living in North Lawndale an opportunity to own their homes. For its missing middle homes, Alteza is prioritizing those who live in North Lawndale and are renting or living with extended family.
Though there was a requirement that potential buyers must have a household income no more than 140% of the area median income, that requirement no longer applies. Instead, the City of Chicago has capped home prices based on that number.
In the traditional sense, these missing middle homes are not affordable housing, which must be occupied by those with incomes below 60% of the area median income. But they’re also cheaper than most new builds that are on the market today. Those who qualify for missing middle units are looking for something in between.
Missing middle housing is for “the people who earn too much to qualify for housing vouchers and affordable subsidies, but not enough to qualify for full-blown market-rate homes,” an Alteza representative said.
Prices for Alteza’s developments will vary. The developer is looking for one buyer to purchase buildings that house two-flats and three-flats and rent out units they don’t live in. Or potential buyers can look into buying what will likely be a townhouse or condo unit in Alteza’s four-unit development.
Alteza is open to offering concessions or credits, and working with lending partners to help buyers apply for down payment assistance and other programs.
Alteza aims to break ground on all eight of its lots’ buildings in May, though that date depends on how quickly the City of Chicago can get a predevelopment agreement approved at a city council meeting. Only when the predevelopment agreement is OK’d will Alteza be able to break ground.
After construction begins, Alteza estimates it will take about six-to-eight months to finish all its construction.
The Missing Middle Housing Initiative
As the Missing Middle Housing Initiative kicks off in North Lawndale, six developers are slated to construct about 100 units of housing across 44 vacant lots.
The initiative is funded by a Housing and Economic Development bond out of the Department of Planning and Development. The City of Chicago sold developers these lots for $1 each and is subsidizing each unit $150,000.
North Lawndale is the site of the first missing middle project because, officials said, of its land value, zoning and local investments. If the West Side pilot is successful, the city may expand its missing middle initiative to other neighborhoods.
Other developers and where they’re building missing middle housing are as follows:
- The Trumbull Collective, which will construct eight two-flats on eight lots on Drake and Trumbull avenues
- Austin-based Citizens Building a Better Community, which will build 16 units on eight lots across Trumbull Avenue, Homan Avenue and Douglas Boulevard
- Beauty for Ashes Developers LLC will develop four two-flats and one three-flat on five Christiana Avenue lots
- Sunshine Management will construct five three-flats, two four-flats and one 10-flat on seven lots on Douglas Boulevard and Spaulding Avenue