Chicago, IL — VDR Real Estate

Renovated kitchen with blue walls and shiny fridge

VDR Real Estate, is a minority owned SDP developer in the NSI program. VDR purchased this NSI Enhanced First Look property from Fannie Mae and completely renovated this brick two-flat home in a northwest neighborhood of Chicago called Belmont Cragin.  VDR spent almost $150,000 in the rehabilitation of this two-flat property including new kitchens, hardwood floors, new roof and finished basement.

 

The homeowner is a first time home buyer who used an FHA loan to qualify, including the rental income.  The developer also provided the homeowner with $9,000 to help them qualify for the loan.  The final sales price for this two-flat was $450,000.  The engagement of socially responsible for-profit developers who have access to more capital and can purchase higher value properties, allow these properties to be rehabbed to a high standard and sold to an income qualified buyer.

 

Belmont Cragin is a predominantly Hispanic neighborhood with 43% of the housing stock made up of 2-4 unit buildings.  The foreclosure activity in this neighborhood with this specific housing type skyrocketed to 95.7% at the beginning of the foreclosure crisis.  Intervention such as NSI has helped reduce that percentage but is still extremely high (81% in 2015).  This neighborhood was specifically targeted by the IL Attorney General Settlement funds for redevelopment and includes two City of Chicago MMRP (micro-market recovery program) efforts led by Spanish Coalition for Housing and Northwest Housing Center.