44-Unit Affordable Housing Development Moves Forward in Humboldt Park

A long-vacant lot in Humboldt Park could soon become a new affordable housing development after receiving a major approval from Chicago’s zoning committee.

The proposal, located at 3251 W. Division Street, calls for a six-story building with 44 below-market-rate apartments developed by Hispanic Housing Development Corporation.

The project now heads to the full Chicago City Council for final approval.

What the Development Includes

The $36 million proposal would bring a mix of housing options aimed at working families, including:

12 one-bedroom units
25 two-bedroom units
7 three-bedroom units

Plans also include:

16 parking spaces
A community room
Library space
Fitness area
Interior courtyard

The building would replace a vacant lot the nonprofit purchased in 2019.

According to Executive Director Tony Hernandez, the site has remained empty since an older two-flat on the property was demolished years ago.

Why the Project Is Getting Attention

The development has become part of a larger conversation around affordability and displacement in Humboldt Park, where rising rents and property taxes continue to pressure longtime residents.

At the zoning committee meeting, Jessie Fuentes strongly defended the proposal.

“This development is for working families,” Fuentes said. “These are for individuals that are the backbone of our community, but because of the rent increases and the property tax increases that we see in Humboldt, so many of those families cannot afford to live here now.”

Hispanic Housing officials and architects with the Division project shared updated information regarding the government subsidies and potential construction timeline at a Jan. 5, 2026 community meeting at the Humboldt Park Fieldhouse. Credit: Ariel Parrella-Aureli/Block Club Chicago

Fuentes said the project evolved through community meetings and feedback sessions, with adjustments made in response to neighborhood concerns.

Support and Opposition

The proposal received support from many local residents and community groups, but not without pushback.

Some nearby property owners and neighbors raised concerns during earlier meetings about:

Building density
Traffic congestion
Parking availability
Height and concentration of affordable housing nearby

Two residents also spoke against the proposal during the zoning committee hearing, questioning both the density and the community engagement process.

Still, the measure advanced without objections from committee members.

Daniel La Spata also voiced support for the project, emphasizing the importance of keeping working-class residents in the neighborhood.

“If our neighbors are good enough to serve lunch to our kids, to wait on us at retail establishments, they’re good enough to deserve housing in our communities as well,” La Spata said during the hearing.

Funding Still Needs to Be Secured

Even with zoning approval moving forward, the project still requires major financial backing before construction can begin.

According to Hernandez, the development will need:

At least $10 million in city support
Additional grants and affordable housing financing assistance

That funding process is common for subsidized housing developments in Chicago and could take additional time before groundbreaking occurs.

A Bigger Conversation About Housing in Humboldt Park

This proposal arrives as Humboldt Park continues to face rapid housing cost increases and redevelopment pressure.

Affordable housing projects in the area have become increasingly debated, especially as longtime residents worry about displacement while others raise concerns about density and neighborhood change.

What makes this project stand out is that it directly targets families already connected to the community, people who may otherwise struggle to remain in the neighborhood as prices continue climbing.

And with relatively few vacant lots left along Division Street, projects like this are becoming more significant in shaping what the future of Humboldt Park looks like.

More to Explore: New 40 Unit Affordable Housing Development Opens in Humboldt Park, Expanding Community Access

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