Luis Vázquez is growing with “Missing Middle”

After launching himself as a real estate developer, the businessman is promoting an initiative that will transform vacant lots into homes for low-income families.

“With this incentive, the cost per unit would decrease, which will allow people with middle incomes to own a home.” – Luis Vázquez

By Migdalis Pérez

Amid Chicago’s ambitious plan to revitalize abandoned lots and expand the supply of affordable housing, Luis Vázquez, founder of Vazquez Housing Development (VHD), became one of six developers selected to build new buildings under the Missing Middle program.

NN: What does the initiative consist of and what benefits does it have for Hispanics?

LV: Well, the program aims to incentivize developers to build housing on vacant lots throughout Chicago. For each unit we build, the city gives us a $150,000 incentive to reduce construction costs with the sole purpose of allowing us to sell the buildings at a low price so that middle-class families can buy these units. In addition, the program will also generate approximately 50,000 hours of employment.

NN: How did you come to participate in this opportunity?

LV: As general contractors in the area and home builders, we sought the opportunity to participate in Missing Middle, which is granting lots for one dollar in exchange for building two, three, or four-story buildings. To avoid being left out, we decided to participate as developers. So, we created this company, VHD, and submitted the proposal to the Department of Planning and Development (DPD). We applied for the Morgan Park neighborhood, specifically for cluster K, where we will build 15 units. Of the 30 applications the city received, they granted six, and we were one of those chosen.

NN: What does it mean to you to have been one of the selected developers?

LV: It fills us with pride, because I would like to think that we were the only Latino group chosen. As they say in English, we are emerging developers, a level that is not easy to reach as a new company. And, of course, this also entails a great responsibility.

NN: Do you have to hire the workers yourselves or will the city assign them?

LV: The city has its own requirements. One of the requirements is that 50% of the workers must be from the city of Chicago. At the same time, the participation of minority-owned businesses must be guaranteed. The city requires up to 36% minority participation. But in our projects, we always have 60% or 70% participation.

NN: What future do you see for this initiative?

LV: Right now, any house costs $400,000, which makes it very difficult to afford a mortgage of that amount. With this incentive, the cost per unit would drop to approximately $300,000, which will allow people with average incomes to become homeowners. In addition, this program has attracted new developers, like us, and that can be expanded to other neighborhoods. Right now, the city owns more than 10,000 vacant lots. We have already applied for Missing Middle Part Three. A month ago, we submitted a bid for the McKinley Park, East Garfield Park, and West Garfield Park neighborhoods.

NN: Does your other company, Toro Construction, have a stake in this program?

LV: VHD provides the financing, that is, it negotiates the contracts with the city and the banking institutions. Toro is the general contractor to manage the construction, while Integrity Wall, which is the other sister company, will be in charge of manufacturing the buildings. Therefore, this would encompass 60% of the project being done by our own hands.

NN: When will construction begin then?

LV: It will begin in April of next year, once the cold weather passes. Right now, we are negotiating the contract with the city. It will be finalized in two weeks at the latest. And from there, the clock starts ticking, beginning in December.

The Missing Middle initiative represents a collaborative model between the city, local developers, and marginalized communities, which seeks to foster housing diversity among middle-class families, young professionals, and residents who are suffering from rising prices. Luis Vázquez and his team are already part of this strategy that will undoubtedly make history in the urban revitalization of Chicago.