Financing and full building permit secured for 1539 N. Pulaski

Financing has closed and the full building permit has been issued for the 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.

“We are proud to give life to this historic symbol of Humboldt Park’s past while meeting today’s need for senior housing in this vibrant community,” said Tony Hernandez, president and chief executive officer of HHDC. “This closing is the result of nearly 20 years of effort to reactivate this site.”

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.  

In November, HHDC received approval for the final piece of funding: $13.24 million in tax-increment financing from the City of Chicago. The approximately $36.22 million project has also received funding through an award of Low-Income Housing Tax Credits from the Illinois Housing Development Authority; a Section 202 Capital Advance and Project Rental Assistance Contract from the U.S. Department of Housing and Urban Development; a $510k Adopt-a-Landmark grant from the City of Chicago; and a $206k grant from ComEd.

With the full building permit issued and the financial closing gone through, the developer can move forward with construction which they plan to begin in January 2026. With Leopardo Construction serving as the general contractor, work is expected to last 15 months.