Apr 12MLF Provides First Ever Loan for Supportive Living Facility
In 1996, Illinois created the Supportive Living Facility (SLF) program under the Department of Healthcare and Family Services (“DHFS”) in response to the Medicaid waiver option given to states to for the purpose of creating state-specific health care delivery service programs. DHFS created a program to license and monitor SLFs in Illinois as a way to reduce the Medicaid expense for caring for the frail elderly (65+) and persons with disabilities (22+) who need routine living assistance but are not eligible for full nursing facility care.
In January 2013, Mercy Loan Fund provided a $1,460,000 bridge loan to GBBT LLC for one such development, Goldblatts Supportive Living Facility on Chicago’s south side. The Goldblatts SLF, located in the former Goldblatt’s department store, will consist of 101 units restricted for seniors at or below 60 percent of the area median income, but in reality will serve those well below the poverty line. The upper floors of the building will be converted into 15 two-bedroom, 16 one-bedroom and 70 studio units with kitchenettes. Amenities will include 24-hour on-site staff, a large dining area (and adjoining kitchen) with multiple use capabilities, “wellness” room with fitness equipment, 24-hour access laundry rooms, and beverage and snack facility.
The borrowing team and Mercy Loan Fund have developed a relationship with a mutual interest in pursuing additional affordable housing and SLF developments in the future. Mercy Loan Fund’s expertise meant that it could more quickly underwrite a complicated transaction with multiple sources with which most banks are not as familiar. This loan is a perfect example of how Mercy Loan Fund’s creative financing supports Mercy Housing’s overall goal of Rebuilding Healthy Communities.
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