$2,252,900
August 2026
Chicago, IL
PARTNERED RIGHT ®
Sims Mortgage Funding closed last month a modest but munificent HUD-insured loan for the Winwood Apartments, a 31-unit affordable elderly housing project in the Andersonville neighborhood of Chicago. Winwood, sponsored, developed and managed by Chicago Methodist Senior Services (CMSS) was financed in the early 1990s with a Section 202 Direct Loan from HUD. Winwood also has a Section 8 Housing Assistance Payment contract in place, providing operating revenues, but little in the way of funds for capital repairs and improvements.
STRUCTURED RIGHT®
Enter Sims Mortgage Funding. We originated a new $2,252,900 loan insured under the Section 223(f) program. The loan paid off the existing Section 202 loan with proceeds to spare, which were used to fund a repair escrow of $569,000; a deposit to the reserve fund for replacements of $300,000; and a relocation fund of $206,000. The latter was required because one of the improvements planned is a major refurbishment of Winwood’s elevator, necessitating the temporary relocation of residents.
EXECUTED RIGHT®
The benefits of the refinancing did not stop there. CMSS received a Developer Fee of $338,000 and $138,000 in excess loan proceeds, which are contemplated to be used to fund improvements at Glenwood Apartments, a sister facility across the street from Winwood owned by CMSS. Operations also will be improved by the refinancing, as debt service savings will be applied to funding a full-time Service Coordinator on-site.
FINANCED RIGHT®
No pun intended, but the refinancing is a win-win for Winwood – and CMSS. The Project will undergo significant improvements and secure additional funding and reserves for future capital needs. Residents will benefit from a modernized community and better access to programs and services. Even residents at Glenwood will benefit from improvements made there from Winwood loan proceeds. And CMSS will receive a Developer Fee it can use to further its mission in the community.
