Lake Forest officials are pursuing state tax credits to help finance the construction of 12 additional cottages for senior citizens.
On May 4, the Lake Forest City Council unanimously approved two measures tied to the proposed project, which would place the cottages on a 2.3-acre parcel at the northwest corner of Everett and Telegraph Roads near the city’s west side Metra station. The homes would be located near the city’s existing five senior cottages that opened in 2001.
Specifically, the city is applying for between $2.3 million and $2.4 million in state tax credits that would help fund homes for residents at least 62 years old who qualify for affordable housing programs.
Community Development Director Catherine Czerniak said at the City Council meeting that the idea of constructing additional senior cottages has been discussed for about 10 years, but efforts stalled because of a lack of available state tax credits and grants.
However, city staff recently learned funding opportunities may now exist through the state program.
“We see a possible path forward with this project, which is really exciting because it has been frustrating and stalled for a very long period of time,” Czerniak said.
As part of the application process with the Illinois Housing Development Authority (IHDA), the city council conditionally approved using $1 million from the city’s housing trust fund. The fund is supported through demolition fees, one-time transfers of city property and payments made in lieu of including affordable units in new multifamily developments.
Separately, Mayor Stanford Tack approved a land donation agreement in which the city would transfer the property to Community Partners for Affordable Housing (CPAH), the city’s partner on the project.
Czerniak estimated construction costs for the cottages would total between $5 million and $6 million amid rising construction expenses. Preliminary designs call for duplex-style cottages of about 1,200 square feet with one or two bedrooms.
IHDA spokesman Andrew Field said the agency has received the application. He noted the tax credits, if approved, would generate approximately $2.4 million in equity.
To close the remaining funding gap, the city is working with CPAH and pursuing additional financial support. Czerniak said the plan includes a nearly $700,000 grant from Lake County and $450,000 from the Lake Forest-Lake Bluff Senior Citizens Foundation, which has preliminarily committed that amount.
Additional financial resources could potentially come from a local bank and the village of Lake Bluff.
(Lake Bluff Village Administrator Drew Irvin confirmed discussions have taken place between the two communities regarding possible financial assistance from the village.)
Czerniak said more funding also could come from the senior foundation and did not rule out requesting additional money from the city’s housing trust fund.
“This is an opportunity for all of us in the community to give back to our seniors and our residents who have been here a very long time, who want to stay here and whose families want them to stay here,” said former Lake Forest Mayor Don Schoenheider, chairman of the housing trust fund.
Field said the tax credits are scheduled to expire Dec. 31, though IHDA is advocating for a 10-year extension through the Illinois General Assembly.
He added the agency has received the city’s application and said the proposal aligns with a broader goal of increasing affordable housing opportunities in affluent communities.
City officials said the existing five cottages have proven successful during more than two decades of operation.
“People move in, and they don’t move out,” Czerniak said. “They have stood the test of time.”
She added that approximately 27 % of the city’s population is 65 or older, leading officials to anticipate strong demand for the cottages if they are built.
If financing is secured, Czerniak said construction could begin next year.
Field said a decision on the application could come as soon as a June IHDA board meeting.
Daniel I. Dorfman is a freelance reporter for Pioneer Press.
