In Harvey, Illinois, houses that once were solid middle-class homes have become vacant, distressed, and nearly forgotten. But the Southland Development Authority’s (SDA) Harvey Housing Initiative (HHI) is cleaning up the mess. A prime example is 223 West 155th Place, which was one of the most severely distressed properties in the area. Its roof had collapsed, mold had spread through the walls, and overgrown trees had completely hidden it from view. The HHI, along with its contractors, faced an uphill battle to rehab it and make it again an asset to the community.

Big Impact at 223 West 155th Place

Traci Quinn, CEO of Pink Hats Construction and Development, headed the rehabilitation. She said the house was virtually unrecognizable. But it wasn’t just the house itself that posed problems. Even the infrastructure records were missing—forcing her team to go in without knowing where the plumbing and electrical systems were located.

“We had to go underground and jackhammer concrete blindly until we found the pipes,” recalls Quinn. 

The project ultimately ran about $50,000 over budget, but Quinn’s team miraculously transformed the property from a shell of a house into a beautiful, functional home. “We put in brand new plumbing underground,” Quinn says, recapping the extensive work she oversaw. “They have a brand new air conditioning system, new furnace, new water tank—and brand new luxury vinyl flooring.” That was just some of the work done both in and outside the house. The redesign also included granite countertops, a custom kitchen island, a laundry room, and a full pantry. Outside, the landscaping was refreshed with new flowers and a retainer wall.

“It’s about giving people a place that they feel comfortable buying,” says Quinn, who opened up the interior design and successfully turned the property into a three-bedroom, two-bathroom home.

Setting Up Contractors and Homebuyers for Success

But HHI’s success isn’t just measured by the number of homes it rehabilitates. “We try to take a holistic view of success,” says Jay Readey, the Vice President of the Harvey Housing Initiative. “This means that we’re interested in returning a derelict property back to productive use while ensuring that our general contractors are growing their business and able to pay their employees a fair living wage.”

“I give all thanks to the SDA for giving me a second chance at life, a second chance at success and opportunity—and to be able to be a blessing to underserved communities,” says Quinn.

The first-time homebuyers must attend homebuyer classes offered by the South Suburban Housing Center. These classes cover all the basics of home ownership including practical knowledge of financial management and home maintenance. This education sets the new residents up for success. “We always want to ensure that our eventual homeowners are happy with the purchase and able to maintain the home after they buy,” Readey adds.

Easier Said Than Done

From the beginning, HHI itself was an ambitious project—a $2.1 million venture aiming to rehabilitate homes throughout Harvey. The goal, beyond revitalizing vacant houses and providing opportunities to new homebuyers, is to return these properties back to the city’s tax rolls. This will generate revenue for the local government and create jobs and educational opportunities for young people.

At first, the project received a capital injection from United Fidelity Bank. But that initial momentum hit a speed bump as unexpected rehab issues raised the cost of rehab. So HHI turned to philanthropic foundations such as the Chicago Community Trust and the Ingalls Development Foundation to secure the funds to subsidize construction costs and provide affordable homes for families in need.

There are ongoing logistical challenges dealing with the local government. “Working with the city of Harvey has often been a challenge due to lack of municipal capacity,” Readey explains. “There are often significant unexplained delays in the permitting and inspection process.”

“Their permits are only six months at a time,” explains Quinn, who faced many of these frustrations herself. “Sometimes it takes months for the electrical—just for ComEd to come out and do what they need to do.”

Rising (and Falling) Interest Rates

Rising interest rates and increasing construction costs have also forced the team to reexamine their approach. Interest rates are just starting to come down—with the Federal Reserve announcing a 50-basis-point cut on September 18th. However, in a higher interest-rate environment, HHI had to diversify its projects to include some houses that are easier to make profitable. “We’ve learned the importance of building larger contingencies into our budgets,” says Readey.

Despite these headwinds, the HHI team is optimistic about expanding their work beyond Harvey. “Harvey has been hit particularly hard by every economic force operating in the Southland,” Readey explains. “So, if it can work in Harvey, it can work anywhere.”

About Southland Development Authority

The Southland Development Authority is a nonprofit business organization launched in 2019 by business, civic, and political leaders from around the Southland who recognize the potential of the region’s people, businesses, and real estate. Our mission is to bring the resources and capacity needed to achieve transformative, inclusive economic growth for the south suburbs with a focus on investments in the Southland’s communities, industry, housing, and workforce.

We work steadfastly to connect Southland business owners, investors, and individuals with key resources to operate and thrive in the region, from equipping mid-size and small businesses in our Business Growth Services Program with customized advice and consulting services to helping local residents access the tools needed to pursue their entrepreneurial dreams. With a deep institutional knowledge of the Southland’s people, markets, and history and our multifaceted, experienced team, the Southland Development Authority is a powerful partner for any individual, business, or investor.