Chicago partners set to break ground on The Ave., affordable housing and retail in Humboldt Park
Chicago IL -- Nonprofit Preservation of Affordable Housing (POAH) and its partner, KMW Communities LLC, have closed on financing for The Ave., a 52-unit mixed-use affordable housing development in Chicago’s northwest side Humboldt Park neighborhood.
In addition to POAH and KMW, the development includes Neighborhood Housing Services (NHS) of Chicago, a long-standing Community Development Financing Institution focused on affordable homeownership. NHS will operate a West Side homeownership center on the property’s first floor.
The four-story development will include 52 1-, 2-, and 3-bedroom apartments targeting households earning 30-60% of the area median income AMI. Resident amenities include indoor and outdoor community gathering spaces, a bike room, fitness center and onsite parking. Residents and NHS (the anchor commercial tenant) will share a community room which doubles as a homeownership training space. The Ave will also create at least 1,000 SF in retail space for local businesses.
“This project is more than just a building. It’s a once-in-a-generation catalytic investment for the residents of this community,” said Anthony Simpkins, NHS’ President and CEO.
The Ave. is Phase I of a broader vision that will include affordable single-family homes and two-flats on vacant parcels in the surrounding neighborhood. To date, KMW Communities has eight homes in process, with more planned.
“We are excited to get under way on this transformative neighborhood investment,” said POAH Vice President Julie DeGraaf. “With the help of our public and private partners, we intend to reactivate an important stretch of Chicago Ave.”
The transaction is financed with substantial support from the Chicago Department of Housing, which issued tax-exempt bonds, 4% low-income housing tax credits (LIHTC) and $18 million in tax increment financing proceeds. The project will also receive a $4.2 million Chicago Recovery Grant to assist with the construction of NHS’ new offices.
"DOH is excited to support the development of this new, family-oriented housing project in Humboldt Park," said City Housing Commissioner Lissette Castañeda. "This project will not only revitalize the area but also serve as a cultural hub for the neighborhood, offering affordable housing options, enhancing local services, and fostering wealth-building opportunities for residents and the surrounding community."
Construction financing and $19 million in investor equity – generated by the tax credits – is provided through Bank of America. A joint venture of Leopardo and Ujamaa Construction is expected to begin construction in April, with completion likely in fall 2026.
“Density is vital to the health of West Humboldt Park and the City,” said Bill Williams, Principal at KMW, located just east of the development site. “The Ave is an important part of repopulating a community that has lost 30% of its population over the last three decades.”
The financial closing caps a development effort begun in 2021with a city-issued request for proposals (RFP) at 3601-25 W. Chicago Ave. as part of the Invest SouthWest neighborhood development initiative.
NHS, which has operated a homeownership center here from a now-obsolete facility, donated roughly half the land needed for this effort. The Ave. also includes an adjacent parcel acquired by the city, as well as a section of public alleyway bisecting the site. To create a single buildable parcel, the alley and a sewer line will be rerouted to a new alley built on the southern border of the site.
About KMW: KMW Communities LLC employs a diverse range of development strategies and tactics to shape the built environment, fostering positive returns for our partners and stakeholders. KMW has led or partnered on luxury for-sale housing as well as commercial and mixed-use developments.
www.kmwcommunities.com
About POAH: Preservation of Affordable Housing (POAH) is a nonprofit developer, owner and operator of more than 14,000 affordable homes in 13 states and the District of Columbia. POAH’s primary mission is to preserve, create and sustain affordable, healthy homes that support economic security and access to opportunity for all.