Department of Housing Seeks Council Approval for Additional Funding for Oak and Larrabee Mixed-Income Development

The Department of Housing (DOH) is seeking City Council approval to amend a Tax Increment Financing (TIF) Redevelopment Agreement to increase funding for the first phase of the Oak and Larrabee development in the 27th Ward.

The proposed amendment would increase previously approved TIF assistance from $14 million to up to $16.7 million to address rising development costs and support the construction of 78 mixed-income rental units in the Cabrini neighborhood.

As part of the Chicago Housing Authority's (CHA) Move Forward Plan, the development will consist of a seven-story elevator building featuring 54 affordable units for individuals and families earning between 30% and 80% of the Area Median Income (AMI), with the remaining 24 units available at market rate. The building will also include 39 indoor parking spaces, 45 bicycle spaces, a community room, fitness center, and an outdoor patio with raised garden beds and a grilling area.

The project will transform vacant CHA-owned land at the southeast corner of Oak and Larrabee Streets, advancing the City's broader redevelopment efforts in the area.

The project's total development cost has increased from approximately $55.5 million to $59.6 million due to utility relocation requirements, changes in construction partners, the expiration of previously committed funding sources, and increased interest rates.

The proposed additional $2.7 million in TIF assistance from the Near North TIF district would help address the resulting funding gap, with CHA providing additional loan funds to support the remaining financing needs.