Chicago/ Real Estate & Development

Chatham Senior Housing Project Clears Final Hurdle, Construction Can Begin

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Published on October 14, 2026
Chatham Senior Housing Project Clears Final Hurdle, Construction Can BeginMartin Luther King Dr. — Approximate Senior Housing Project Site
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A long-awaited affordable senior housing project in Chatham has cleared its final regulatory hurdle. Park Manor Senior Residences has received a full building permit, meaning construction can now get underway on the five-story, 52-unit development planned for independent seniors ages 63 and up.

The permit issuance means general contractor Skender can begin work and will stay on through completion of the new building, according to Urbanize Chicago. The project is the result of a partnership between ZPACT Developers LLC, SPM Properties & Development and Park Manor Christian Church, as previously reported by Block Club Chicago. Johnson & Lee Architects designed the building, and the project site was rezoned in 2024 to accommodate its scope.

The project is set to rise on long-vacant South Side land that has sat undeveloped for years.

What Residents Will Get

Once complete, the building will offer a mix of one-bedroom and two-bedroom units aimed at independent seniors. Planned amenities include a community room, a health club, a hair salon, green space, free Wi-Fi and a transportation portal, the outlet's reporting on the project's details indicates. The building will also incorporate a police substation where officers can stop in for lunch or coffee.

Demand for senior housing in the area has run high. The Montclare Senior Residences of Avalon Park, at 1200 E. 87th St., has been described as consistently at capacity with a long waiting list, per Block Club Chicago's earlier coverage of the Park Manor project. That context helps explain why developers moved forward with another dedicated senior building.

Financing and Funding Sources

The project is expected to cost approximately $32 million, and it has already received approved Low-Income Housing Tax Credit funding to help cover development costs, the same Urbanize Chicago report notes. Separately, the City of Chicago has said it intends to request the release of HUD HOME Investment Partnerships Program funds and HUD Economic Development Initiative Community Project Funding grants to support new construction on the site, according to the city's own environmental review materials.

City records also show the City Council approved an ordinance in March providing $16.2 million in 9% Tax Credit Equity, $12.6 million in HOME funds and $2.5 million in Housing and Economic Development bonds to support a new senior housing development, per a city housing department announcement. Earlier project plans had called for construction to break ground in early 2025 with residents moving in by 2026, though it's unclear how those timelines have shifted given the permit's issuance this week.

Part of a Broader Citywide Push

Park Manor Senior Residences is one piece of a much larger affordable housing effort underway across Chicago. City officials announced plans to invest more than $300 million in 15 affordable housing developments citywide, a push expected to create or preserve 1,223 housing units, including 1,164 that will qualify as affordable, Block Club Chicago reported in April. Thirteen of those 15 projects are transit-oriented developments, part of a broader strategy to pair new housing with transit access.

Chatham itself is seeing more than one project take shape. Gateway 79, piloted by Carter Temple CME Church, is planned to replace five acres of vacant land next to the 79th Street Red Line station with housing for both families and seniors, according to the same Block Club Chicago report on the citywide investment. Together, the projects signal a concentrated effort to add senior and family housing stock on the South Side after years of vacant lots sitting idle.

Chicago-Real Estate & Development