UrbanStreet Group is requesting $13.75 million in public funds to transform a rundown shopping center in Arlington Heights into a mix of residential and commercial spaces. The proposed project is expected to cost $100 million. However, the developer is facing criticism from village officials and residents over its plan to build cheaper senior apartments in a separate building, which violates a local affordable housing ordinance.
The village ordinance requires that any development receiving public assistance must set aside 10% of its units as affordable. UrbanStreet is currently negotiating with Northpointe Development Corp. to build age-restricted senior housing, but there are doubts about the project’s ability to secure the necessary federal low-income housing tax credits. If the deal falls through, UrbanStreet will make “good faith efforts” to find another developer. If this fails, the village will take back the parcel and find an affordable housing developer.
UrbanStreet’s plan includes the construction of six four-story apartment buildings with 266 units and four commercial outlots for retail, a restaurant, and a daycare center. The proposal aims to make a dent in the need for affordable senior housing in the area. Construction on the apartments is expected to start in October next year, and the senior housing by September 2025.
