Department of Housing Proposes Additional Funding for Affordable Senior Housing Development in Humboldt Park

The Department of Housing (DOH) is seeking City Council approval to amend a Tax Increment Financing (TIF) Redevelopment Agreement to provide an additional $1 million in TIF assistance for the 1539 N. Pulaski Elderly Apartments development in Humboldt Park. The proposed funding increase would address unforeseen structural rehabilitation costs associated with the adaptive reuse of the historic Pioneer Arcade building.

The redevelopment project will transform the vacant, 1920s-era building through historic rehabilitation and new construction into a six-story, approximately 63,000-square-foot residential development.

The project will deliver 60 affordable rental units and one on-site manager's unit for seniors aged 62 and older. The majority of units will serve households earning 50% or less of the Area Median Income (AMI), with additional affordability supported through HUD's Section 202 Project Rental Assistance Contract.

During construction, significant structural deficiencies were discovered within the historic building. The proposed additional $1 million in TIF assistance would reimburse these costs and help restore contingency funding to support the remaining construction activities and completion of the development.