Fashion Fair House announces plans to build affordable homes in Woodlawn | New
Chicago’s Fashion Fair House development and investment firm has partnered with construction consultancy firm SUMAC to create affordable new homes for working families in Woodlawn. The partnership advances Fashion Fair House’s goal of increasing home ownership in the Chicago area.
On May 18, Fashion Fair House closed on a lot in West Woodlawn at 6543 South Langley Avenue. The development company works with the City Lots for Working Families program, which encourages real estate developers to purchase city-owned land to create affordable housing.
The Langley home will be a model home, where buyers can view the layout and design of the series of homes the development group plans to build in Woodlawn. Called Everlook at Woodlawn Community Homes, the buildings will cost between $ 200,000 and $ 600,000.
Fashion Fair House has also partnered with the Canadian Imperial Bank of Commerce (CIBC) to ensure the homes are acquired by working class families. At the groundbreaking ceremony on June 29, Ramona Butler, a member of CIBC’s community lending team, said the bank is working with various programs so that those with non-existent and low credit scores are not penalized by high interest rates.
“We work with all the down payment assistance programs that exist in the city. I got help from the Federal Home Loan Bank, Illinois, and they basically have built-in rates, so everyone is going to pay the same rate, ”Butler explained.
When asked how they plan to tackle gentrification, Fashion Fair House founder Erica Stewart said it was all about meeting the needs of neighborhood residents. “They fear that once a great development, a new development arrives in their communities, they will be evicted just because of the price. So if you make sure you keep it suited to their region, average income, or income level, gentrification won’t happen as quickly. ”
Stewart says the starting price of $ 200,000 for the house is part of a house program that they are implementing – new homes typically start at as low as $ 400,000, but they want to be sure they give it away. at a lower price. Stewart explained his passion for affordability, talking about the challenges marginalized people face when it comes to getting loans of all kinds.
“It’s hard for people to just get a car (loan), especially getting approval for a house,” she said. “So it’s important for us to make sure we’re developing affordable homes at prices that will target people with low to moderate incomes and make sure they can get the home. It’s easy to develop, but they must get it.
Stewart says they will start innovating on the development in the fall of next year, with the hope of completing in August 2022.