It’s been nearly a year since we first reported on plans for Burlington Terrace, a new 50-unit affordable senior housing complex proposed on Graham Health System-owned land near the intersection of North Seminary Street and Carl Sandburg Drive—right next to the Galesburg Graham Medical Group Center for Ambulatory Care—and with no visible progress, listeners want to know: Is the project dead or still in play?
Listener Chris emailed WGIL: “I haven’t seen any follow-up on the senior housing project near Graham Medical Group on Seminary. Is it still happening, or did the developer pull the plug?”
Answer from Steve Gugliotta, Galesburg Director of Community Development:
“As you may recall, the proposed senior living facility near Graham Medical Group on Seminary Street is contingent upon receiving highly competitive state-allocated resources, in the form of Low Income Housing Tax Credits (“LIHTC”).
The Illinois Housing Development Authority (IHDA) receives an annual allocation of approximately 30 million in LIHTC. It is not uncommon for IHDA to like proposed development but be unable to award tax credits during the first application cycle, as requests typically exceed resources. For the 2025 LIHTC round, IHDA received 38 applications requesting a total of roughly $53 million in LIHTCs. Following the notification that IHDA did not award tax credits to this project, IHDA offered a virtual meeting to review the application and provided constructive feedback and technical guidance.
The development team of Bywater Development, Simmons Development Group, Graham Health Systems, and the City of Galesburg remains committed to the proposed project to create independent, affordable senior housing adjacent to the Graham Healthcare facility. This development addresses a recognized need in our community and aligns with IHDA’s goals for supporting quality, affordable housing options across Illinois, as well as the City’s high-priority strategic goal of improved housing stock and options. Strong local support from community leaders, stakeholders, and the City further underscores the importance of this project.
The development team remains enthusiastic about its potential and looks forward to refining the proposal and resubmitting for the next IHDA funding round, with applications due February 25, 2026, and award recommendations anticipated in June 2026.”
Bottom line: The project is not canceled—it’s very much alive. The team missed out on 2025 state tax credits but plans to reapply in early 2026.
Related: Bywater Development Takes Second Shot at Senior Residential Units in Galesburg
