Construction is underway on a new development on Lake Shore Drive, and when it’s complete, it will represent more than just a striking addition to the Chicago skyline.

400 Lake Shore is a 72-story residential tower located where the Chicago River meets Lake Michigan along Chicago’s lakefront. Phase one of the project consists of the 858-foot-tall North Tower, which will include 635 new apartments and features such as indoor and outdoor swimming pools, a fitness center, co-working space, a parking garage, and a speakeasy.

But the development has more to offer residents than just luxury amenities. The property will also help fill a critical affordable housing need in Chicago, as 20% of the apartment units will be designated for tenants who earn 30% to 50% of area median income (AMI). PNC has contributed Low Income Tax Credit (LIHTC) equity solely to the development of affordable housing units. Residents will have the same access to the building’s facilities as the property’s market-rate occupants, and they will benefit from the tower’s proximity to grocery stores, recreational facilities, and other community services in the surrounding Streeterville neighborhood.

“Taking on the affordable housing shortage is one of the most meaningful things we can do as a bank, because it makes a profound difference in the lives of the millions of Americans who are having a hard time keeping up with rising rents,” said PNC Illinois Regional President Scott Swanson. “PNC Tax Credit Solutions has a demonstrated commitment to tackling this problem in communities across the country, and we’re thrilled to see it taking place here in Chicago.”

400 Lake Shore is not the only example of PNC’s investment in affordable housing development in the Chicago area. Through the South Shore project, PNC has invested more than $19 million in LIHTC equity to renovate 126 rental units in five multifamily properties. The majority of these housing units are designated for family households earning at or below 60% AMI, with several other apartments set aside for residents with disabilities who earn at or below 30% AMI. PNC also provided more than $22 million in LIHTC equity investment to renovate units and community space in the Crandon Apartments, a residential property for senior households with incomes of up to 30% and 60% of Area Median Household Income (AMHI). 

A Commitment Beyond Housing 

In addition to housing, tax credits can also play a useful part in meeting other important community needs. Such is the case with the Esperanza Health Center, a Federally Qualified Health Center (FQHC) located in the Brighton Park neighborhood of Chicago. Esperanza Health Center serves a community of over 80,000 mostly Latino and working-class households, with more than 53% of the residents in the center’s service area living below 200% of the poverty level. 

In 2023, PNC Tax Credit Solutions invested $9 million in New Markets Tax Credit (NMTC) equity to support a clinic expansion. The expanded facility will grow the center’s capacity by 20,000 new patients and 80,000 additional clinic visits per year, while also providing senior programming and spaces for health services, learning, and recreation. The expansion is also expected to allow the clinic to add 21 health providers and more than 100 full-time staff positions. The 2023 expansion builds upon a previous PNC tax credit project with the Esperanza Health Center, bringing PNC Tax Credit Solutions’ total investment in the facility to $15.3 million to date.

“Projects like these may not seem to move the needle very much when you stack them up against the massive amount of need that exists for affordable housing and other essential services, but they have a major impact just the same,” said John Nunnery, manager of originations with PNC Tax Credit Solutions. “Helping individuals and families who are struggling financially to find a place to call home or receive the healthcare they need – these things make a tremendous difference in peoples’ lives and can have a far-reaching impact in their communities. PNC Tax Credit Solutions is proud to play a part in bringing these projects to life.”

Learn More About PNC Tax Credit Solutions Investments in Local Communities

Ready to Help

PNC is one of a small number of banks that has successfully launched a dedicated business, PNC Tax Credit Solutions, that is devoted to preserving and bolstering affordable housing supply and spurring economic development. PNC combines Low-Income Housing Tax Credit (LIHTC) equity financing with our affordable housing debt solutions to deliver a seamless financing package for the construction or redevelopment of affordable housing. For more information, reach out to your relationship manager or contact us.