CDC approve $15 million in TIF for non-congregate shelter

The Community Development Commission has approved $15 million in TIF funding for a planned non-congregate shelter at 2508 W. 21st. Planned by Franciscan Outreach, the project site is located on a midblock site between S. Rockwell St and S. Western Ave. The site is currently home to an existing majority vacant one- and two-story building on an underutilized block in a community area with substantial need for shelter services. 

Designed by LBBA Architects, the 45,000 square foot vacant building will be redeveloped into a 120-bed non-congregate shelter with supportive service space for people experiencing homelessness in partnership with the Department of Housing (DOH) Non-Congregate Shelter Acquisition program. 

The building plans include a complete interior build-out of the furthest east building to establish non-congregate shelter space, including dorm-style sleeping room configurations of 2-4 sleeping rooms with a shared bathroom, an elevator installation, and dining and community space, all of which is planned to be accessible. 

The next building will be rehabbed to create staff space, offices for case management, and an intake and entry space. The third building will become flex space for congregate shelter beds, and will also hold a commercial kitchen, laundry, and shared bathrooms. The furthest west building will be adapted to establish more services space, including space for partner organizations to support residents. 

Additionally, any other repairs required per the building conditions report to bring the building up to a state of good repair are included in the scope – this includes updating mechanicals, replacing the roof, and other building system improvements. The project location was selected based on proximity to public transit, improving access to transportation for appointments, training, and employment. 

The proposed site would increase bed capacity from 70 to 120, allowing more people access to available, critically needed shelter space. This project will expand capacity for Franciscan Outreach and benefit shelter guests, low-income neighbors, and CDFSS, who rely on Franciscan to provide shelter and services. Funding for ongoing program operations will be comprised of annual grants from DFSS (per bed rate increases due to unit being non-congregate), foundation and corporate grants, individual donors, and other government grants from the Illinois Department of Human Services (IDHS). 

The $25.5 million project is expected to be funded with a $7.5 million DOH grant, $15 million in TIF funding, and $3 million in philanthropy and grantee equity.

With Walsh Construction selected as the general contractor, the project is currently pre-closing and City Council introduction is planned for January 2025. Construction is expected to wrap up by July 2026.