CDC approves $13 million in TIF for development at 1539 N. Pulaski

The Community Development Commission has approved $13.24 million in TIF financing for an affordable senior housing development at 1539 N. Pulaski. Planned by the Hispanic Housing Development Corporation, the project will adaptively reuse the former Pioneer Arcade building and build on the adjacent vacant lot to its south.

Designed by UrbanWorks, the project will see the adaptive reuse of the former Pioneer Arcade with a six-story addition that will feature 61 affordable senior apartments. The design will preserve the terracotta facade of the historic property and retain approximately one-third of the existing structure behind the facade. The six-story new construction addition will stand behind the preserved building and extend south onto the vacant site.

On the ground floor, the residential entry will be located within the existing Pioneer Arcade building in addition to a fitness room, mail room, and supportive services offices. Mechanical spaces, a bike room, and six residential units will occupy the ground floor of the new addition. 26 car parking spaces will be located behind the building in a surface parking lot along the alley.

The second floor of the building will have a community room and kitchenette within the Pioneer Arcade building with a health exam and counseling room, residential storage, and 10 residential units in the new portion of the floor. The third floor will have 10 residential units while the fourth floor will have 11 residential units. The upper floors will have 12 units per floor.

With a total of 61 residential units, the apartments will be for very-low-income elderly households, providing 58 one-bed units at 50% AMI or less, two two-bed units at 60% AMI or less, and one two-bed unit for a resident manager for a total of 61 units. There will be 58 one-beds and three two-beds, one of which will be reserved for a resident manager.  

Set to cost approximately $36.16 million, the project will be financed with $16.2 million in equity, $13.24 million in TIF, a $6 million HUD Section 202 Capital Advance grant, a $500,000 DPD Adopt-A-Landmark grant, and a $200,000 ComEd grant. 

With the proposed TIF funding approved by the Community Development Commission, the funding proposal will go to City Hall to get final approval from the Chicago City Council. The developer is looking to begin construction in January 2026 and open the building in January 2028.