Chicago Construction News staff writer
A major redevelopment project is underway in Chicago’s Little Village neighborhood, where a historic industrial building at 2508 W. 21st St. will soon be transformed into a 120-bed shelter for individuals experiencing homelessness. Spearheaded by Franciscan Outreach, the project will breathe new life into the largely vacant 45,000-sq. ft. structure, addressing a critical need for shelter and services in the community.
Walsh Construction has been selected as the general contractor for the project. The team is currently in the pre-closing phase, with an introduction to the City Council scheduled for January 2025. Construction is expected to begin soon thereafter, with an estimated completion date of July 2026.
The building, originally constructed in 1900, has seen several expansions and renovations over the years, but in recent times, it has remained largely vacant. The upcoming redevelopment will restore the building’s historic facade, replace the roof, and upgrade mechanical systems to bring the structure up to modern standards.
Construction will also adapt the building’s unique layout, which includes multiple wings, to accommodate various shelter and service areas. The initiative is part of a partnership between Franciscan Outreach and the city’s Department of Housing (DOH), under the DOH Non-Congregate Shelter Acquisition Program.
Shelter features and community amenities
Once completed, the shelter will offer a range of facilities designed to support the needs of its residents and the surrounding community. Key features of the redevelopment include:
- Dorm-style sleeping units: The majority of the building will be converted into dorm-style rooms, with two to four sleeping spaces sharing a common area and bathroom. This layout aims to provide more privacy and comfort than traditional shelters.
- Overflow capacity: In addition to the 120 permanent beds, the shelter will have a dedicated overflow room with 36 cots, allowing it to accommodate more people during periods of high demand.
The facility will include office spaces for case management, intake services, and collaboration with partner organizations offering additional resources, such as employment counseling and healthcare.
This expansion will nearly double the shelter’s current capacity, increasing its bed count from 70 to 120, helping Franciscan Outreach serve a larger portion of the homeless population in Little Village.
The total cost of the project is estimated at $25.5 million, with funding sourced from multiple channels including:
- Tax Increment Financing (TIF): The City’s Community Development Commission has approved $15 million in TIF funding.
- DOH Grant: A $7.5 million grant from the Department of Housing will also help support the project.
The remaining $3 million will be raised through donations and equity contributions from the grantees and other philanthropic sources.
The redevelopment will prioritize accessibility, ensuring that all facilities are usable by individuals with various mobility needs. The design will also include communal spaces, such as dining areas and lounges, to foster a sense of community and connection among residents. Additionally, integrated service spaces will allow third-party organizations to provide on-site support, ranging from healthcare services to job placement assistance.
This project represents a significant step toward addressing homelessness in the Little Village community. By repurposing an underutilized industrial building, the initiative provides not only a physical shelter but also a beacon of hope and stability for the neighborhood’s most vulnerable residents. With a strong funding base, an experienced contractor in Walsh Construction, and a well-defined timeline, the shelter at 2508 W. 21st Street is poised to become a vital resource for the Little Village community by 2026.
