Chicago City Wire

Thirty new multi-unit buildings valued at $39.4 million are set to be constructed on vacant lots in Chatham, South Chicago, and Morgan Park as part of the Chicago Department of Planning and Development’s (DPD) Missing Middle Housing Initiative. The project will deliver 108 market rate homes, including townhomes and six-flats, developed by six minority-led teams chosen from 38 applicants who responded to a recent DPD Request for Applications.

“Market rate housing construction is essential to DPD’s neighborhood repopulation and wealth-building goals, so we’re thrilled to announce another six development teams that will create multiple new housing types for buyers and renters,” said Commissioner Ciere Boatright.

The city made clusters of four to six parcels available for redevelopment, with developers selecting at least one cluster each for their proposals. Selections were based on criteria such as developer experience, financial capacity, proposal design, and other factors.

DPD may offer assistance up to $150,000 per unit and sell each lot for $1 to help ensure sales prices remain at market rates while supporting wealth-building opportunities for buyers. Owner-occupants can purchase entire buildings and lease remaining units. Assistance would come from Housing and Economic Development Bond proceeds if approved by the City Council. Construction could begin in early 2026.

In collaboration with Aldermen William Hall (6th), Gregory Mitchell (7th), and Ronnie Mosley (21st), the 30 lots were rezoned earlier this year to enable small-scale multi-unit building construction.

The Missing Middle initiative aims to support more than 750 new homes across the South and West sides using available city funding. Over 100 units are already moving forward in North Lawndale. The initiative targets “missing middle” housing—small residential buildings that once filled city blocks but have disappeared due to disinvestment—and forms a central part of Mayor Brandon Johnson's broader market rate housing strategy.

More details about the program are available at https://www.chicago.gov/city/en/sites/missing-middle/home.html.