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With Real Estate Support from IFF, Chicago Makes a Transformational Investment in the City’s Shelter System August 27, 2025

In late July, Mayor Brandon Johnson announced at a press conference attended by IFF staff, city officials, nonprofit leaders, and local media that the City of Chicago’s Department of Family and Support Services (DFSS) is allocating $40 million in capital grants to upgrade and modernize shelter facilities in Chicago. The funding will facilitate high-impact capital improvements to seven shelters located on the city’s north, south, and west sides to create healthier, safer, less congregate, and more accessible facilities equipped to serve a wide range of clients experiencing homelessness. 

IFF is partnering with DFSS as the program administrator for the Shelter Infrastructure Initiative, with our Real Estate Solutions team tapped to guide the planning process for the upgrades and to ensure the build-out of the facilities is aligned with leading design and construction standards.  

The initiative will build upon the team’s work in recent years alongside shelter operators engaging in predevelopment and real estate and capital readiness planning to identify facility needs, including adding shelter beds, prioritizing private rooms, and addressing deferred maintenance, accessibility, and infrastructure needs like adding air conditioning and elevators. This work began with the allocation of COVID-era recovery funds that provided shelter operators with a rare opportunity to access capital funding to upgrade their facilities and builds upon the City of Chicago’s commitment to bolster the shelter system using Housing and Economic Development Bonds. 

“Many shelter operators do a remarkable job with a ‘make-do’ attitude when it comes to facilities,” says IFF Vice President of Real Estate Solutions Kate Ansorge. “But IFF aspires to demonstrate how facility investments improve the outcome of program participants, support hard-working staff who dedicate careers to service, and invest in our neighborhoods. The outcome of the city’s transformational investment in the shelter system is capital funding aligned with shelter operator and system-wide goals.” 

The organizations awarded funding through the initiative serve a wide range of unhoused populations, including families with children, unaccompanied youth, adult single women and men, and citizens returning from incarceration. Shelters that will be upgraded include: 

  • Cornerstone Community Outreach – Sylvia Center (Uptown) 
  • Covenant House Illinois (East Garfield Park) 
  • Franciscan Outreach – House of Mary and Joseph (East Garfield Park) 
  • Olive Branch Mission – Lamplight (West Englewood) 
  • St. Leonard’s Ministries – Grace House (Near West Side) 
  • St. Leonard’s Ministries – St. Leonard’s House (Near West Side) 
  • The Inner Voice – Pioneer House (West Garfield Park) 

“We’re creating spaces that protect health, reduce trauma, and honor everyone’s dignity on their journey to housing and wellness.”

Planned building upgrades, which will address accessibility, fire and life safety improvements, and energy efficiency enhancements, among other examples, will modernize more than 750 existing beds and create more than 350 new beds. The new beds will be in non-congregate settings, which pairs a private bedroom with individual bathrooms and secure storage. This model replaces the shared dormitory system and is designed to provide a safer, more dignified living environment for individuals and families in the shelter system. 

“DFSS investments in shelter infrastructure are significantly impacting Franciscan Outreach, helping us to provide a welcoming and supportive environment for our guests,” says Robret Simpson, Franciscan Outreach’s executive director. “Our Harrison Street Shelter remains a vital part of Chicago’s efforts to address homelessness, and these upgrades will help us serve with even greater compassion and care. Renovations include non-congregate rooms, HVAC, a redesigned dorm layout, a new kitchen, and a community room for meals and shared conversation. We’re creating spaces that protect health, reduce trauma, and honor everyone’s dignity on their journey to housing and wellness. Alongside City partners, we’re not just upgrading a building — we’re fostering stability and connection for every person seeking shelter here.”

To learn more about the Shelter Infrastructure Initiative, scroll down for a replay of the press conference, social media highlights, and media coverage of the funding announcement event at St. Leonard’s Ministries. 

 

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