Case StudiesDevelopers and Advisors for
Quality Affordable Housing Development

Hearts United –
Phase I and II

Bonheur Development

Major Funding Partners:
Chicago Housing Authority
City of Chicago
Federal Housing Administration

Chicago’s Bronzeville Neighborhood centered at 47th Street & Cottage Grove

228 mixed income units on 17 sites

Development Cost:
Project cost: $31.8 million

Finance Sources:
4% tax credits
Tax-exempt bonds
FHA/GNMA insurance
LIHTC bridge loan
FNMA bridge loan
Federal enterprise zone funds

Hearts United Phase I and II created 228 new infill housing units interspersed with existing historic row houses on Chicago’s South Side. 

The development was one of the first under the Chicago Housing Authority’s Plan for Transformation to replace existing public housing with integrated mixed income developments. The project was the first of its kind in Chicago, as no HOPE VI funds were previously combined with tax-exempt bonds. Mark Laubacher was the bond underwriter and deal manager for the project. He also performed due diligence on the TIF funds used on the project, and directed the project’s critical path issues.

In addition, Mr. Laubacher raised $210,000 of additional developer fees by structuring the sale of tax-exempt bonds backed by GNMA at a premium over par.