Department of Housing Proposes Financing for 70 Affordable Rental Units at Morgan Park Commons

The Department of Housing (DOH) is seeking City Council approval for two separate financing ordinances to support the first phase of Morgan Park Commons, a $57.5 million affordable housing redevelopment located at 11400-11458 S. Halsted Street in the 21st Ward.

Proposed by Preservation of Affordable Housing (POAH) and Far South Community Development Corporation (CDC), the development will transform a vacant commercial site into 70 new affordable rental units across two four-story residential buildings.

All 70 units will be restricted to households earning between 30% and 80% of the Area Median Income (AMI), including 17 units supported by Chicago Housing Authority (CHA) project-based vouchers.

Each building will contain 35 affordable rental units, including ground-floor live-work apartments designed to support neighborhood-serving commercial activity. The development will also feature approximately 2,000 square feet of retail space, on-site management offices, resident amenity spaces, and a fitness center.

The project will utilize a twinned financing structure consisting of separate 4% and 9% Low-Income Housing Tax Credit (LIHTC) transactions.

The proposed 4% ordinance would authorize up to $8.14 million in HOME funds, up to $5 million in Tax Increment Financing (TIF) assistance, and up to $197,925 in Illinois Affordable Housing Tax Credits to support the construction of the first 35-unit building, with a total development cost of approximately $27.5 million.

The proposed 9% ordinance would authorize up to $1.23 million in HOME funds, up to $3 million in annual 9% LIHTC, and up to $197,925 in Illinois Affordable Housing Tax Credits to support the second 35-unit building, with a total development cost of approximately $30 million. Resident amenities within the 9% building will be shared by tenants of both buildings, supporting a cohesive residential community as part of the larger planned redevelopment.