A new affordable housing development has been proposed for 3251 West Division Street in Chicago’s Humboldt Park area. The project, led by the Hispanic Housing Development Corporation, would transform a vacant lot at the corner of West Division Street and North Spaulding Avenue into a six-storey residential building designed to expand access to affordable housing.
The development team has submitted a zoning application to allow the project to proceed through the city approval process.
Building Design and Architectural Plan
The project has been designed by WJW Architects, with plans calling for a mid-rise residential structure rising six storeys.
Urbanize Chicago reports that the design incorporates building setbacks to help reduce the visual impact of the structure and better align the building massing with the surrounding neighborhood context. These modifications were introduced following feedback from residents during a community meeting hosted by the 26th Ward.
From a construction perspective, setbacks often require additional structural coordination because floor plates shift vertically across the building. This can influence column placement, façade detailing, and roofline transitions.
Residential Unit Program
The building will contain 44 residential units, all designated as affordable housing for households earning between 50 percent and 60 percent of the Area Median Income (AMI).
The unit mix includes:
- 12 one-bedroom units
- 25 two-bedroom units
- 7 three-bedroom units
Providing a range of unit sizes allows the building to accommodate both individuals and families while maintaining affordability requirements tied to the project’s financing structure.
Ground Floor Layout and Community Amenities
The ground floor will include several spaces designed to support residents and building operations.
Planned features include:
- Community room
- Fitness room
- Library room
- Management office
- Bike storage area
The residential entrance will be located along West Division Street, creating a clear connection between the building and the neighborhood streetscape.
Parking and Outdoor Space
The eastern portion of the ground floor will contain a 16-space parking garage accessed from the rear alley. Incorporating parking within the building footprint requires careful coordination of structural supports, ventilation systems, and vehicle circulation paths.
Behind the building, the project will include a resident courtyard, providing outdoor space for tenants. Courtyard construction typically involves landscape design, drainage systems, and durable paving materials to support long-term maintenance.
Community Feedback and Design Adjustments
The current version of the proposal reflects several adjustments made after community engagement sessions.
Key changes include:
- Building setbacks to reduce the perceived height
- Increased parking capacity
- A reduced overall unit count to address density concerns
These revisions demonstrate how design teams often refine project proposals to align with neighborhood feedback while maintaining development feasibility.
Project Financing Strategy
The estimated cost of the development is $36 million, with financing expected to come from multiple sources.
The development team is pursuing:
- 9 percent Low-Income Housing Tax Credits through the Illinois Housing Development Authority (IHDA)
- City of Chicago soft debt funding
- IHDA soft debt programs
- Freddie Mac permanent financing
- Chicago Housing Authority vouchers
The team submitted an IHDA funding application in September 2025 and applied for CHA vouchers in December 2025. An additional application for City of Chicago soft debt is planned for March 2026.
Zoning and Approval Process
To move forward, the project requires rezoning of the site from B1-1 to B2-5, which would allow the proposed residential density and building scale.
With the zoning application now filed, the proposal will proceed through review by the Chicago Committee on Zoning before ultimately requiring approval from the Chicago City Council.
Construction Timeline
If funding and zoning approvals are secured, the developer anticipates beginning construction in June 2027. The construction schedule targets completion by September 2028.
Construction Trades Involved
A mid-rise residential development of this type typically involves a wide range of construction trades, including:
- Site preparation and excavation crews
- Concrete foundation and structural contractors
- Masonry and façade installation teams
- Roofing and waterproofing specialists
- Mechanical and HVAC contractors
- Electrical and plumbing installers
- Fire protection contractors
- Elevator installation teams
- Interior finishing trades
- Landscaping and courtyard construction crews
Supporting Future Residential Development
Once complete, the proposed building at 3251 West Division Street will convert a vacant lot into a six-storey residential structure designed to provide affordable housing options within the neighborhood.
Through its mix of unit sizes, resident amenities, and community-responsive design changes, the project reflects how modern affordable housing developments are being planned and built in Chicago’s evolving urban landscape.
