Fifth City Commons

Fifth City Commons exterior
Project box

Geographical area: North-America

Location: Chicago, USA

City size: Large (between 1,000,000 and 5,000,000 inhabitants)

Promoter: Preservation of Affordable Housing (POAH)

Developer: Preservation of Affordable Housing (POAH)

Start year:

End-year:

Implementation phase: Completed

Project size: Building

Total area of intervention (in sqm): 5.574

Total investments (in USD): 38 million

Project overview

Fifth City Commons is a regeneration project located in East Garfield Park, a historically working-class, predominantly black neighbourhood in Chicago that has experienced long-standing underinvestment. The project addresses the urgent need for affordable housing and community revitalisation in an area affected by population decline, economic hardship, and ongoing threats of gentrification and displacement due to rising house prices in the East Garfield Park area.  The development consists of a new three-storey, mixed-use building providing 43 affordable housing units and commercial spaces on the ground floor, totalling 5,574 sqm.  Construction began in 2023, following the project’s selection as a winner of the Reinventing Cities competition in 2019, and the building was inaugurated in 2025. 

The development stands on a formerly public vacant lot in an area historically known as Fifth City, which had suffered significant deterioration since the 1968 riots triggered by the assassination of Dr. Martin Luther King Jr. The riots caused widespread damage, and rather than rebuilding, city authorities chose to demolish damaged structures, particularly along Madison Street, once the area’s main commercial corridor. This led to an increase in vacant lots and properties being held by speculators with no real interest in investing in the neighbourhood’s recovery, adding to the district’s history of systemic underinvestment. Combined with the decline of industrial jobs and ineffective public strategies, these actions contributed to a population drop from a peak of 70,000 in the 1950s to just over 20,000 today, with roughly a quarter of the land left vacant. The name of the building, Fifth City Commons, honours the legacy of the Fifth City Movement, a Black-led initiative launched in the 1960s that promoted community development guided by residents rather than by top-down mandated interventions.

The project was led by Preservation of Affordable Housing (POAH), a non-profit organisation that develops and manages affordable housing for low- and middle-income residents. POAH serves as the developer, owner, and property manager through its subsidiary POAH Communities. The City of Chicago contributed by selling the lot and providing financing, while the architectural design was carried out by a team led by Perkins&Will and Nia Architects, with landscape design by Greenprint Partners. Fifth City Commons is part of the Strong, Prosperous, and Resilient Communities Challenge (SPARCC), a national initiative promoting equitable and climate-resilient development through community participation. SPARCC’s implementation was coordinated by local partner Elevated Chicago, an NGO which connects, through its work, equitable housing development to public transit, climate resilience, and racial equity. The total investment in the project amounted to USD 38 million and was supported by a mix of public and private funding, including contributions from the Municipality, Enterprise Community Partners, BMO Harris Bank, ComEd, and the Illinois Solar for All programme, which supported the installation of rooftop solar panels. Additional support for the social inclusion strategy during development came from Tandem Ventures, while environmental sustainability was aided by consulting dbHMS, Rubinos & Mesia Engineers, Omni Ecosystems, and Terra Engineering. Construction was completed by Skender Construction and Ashlaur Construction.

The building was designed to meet Passive House standards, making it highly resource-efficient and environmentally sustainable through features such as premium insulation, air sealing, solar panels, stormwater retention systems, electric vehicle charging stations, extensive bike parking, and composting and recycling facilities. It also includes resident amenities such as a fitness centre, two community rooms, a terrace, off-street parking, access to public transportation, and on-site management offices. In alignment with community priorities, the commercial space on the ground floor is expected to host Black-owned and food-focused local businesses, contributing to the economic development of the neighbourhood. 

Fifth City Commons is part of a broader urban regeneration strategy, with a second building currently in the planning stage to be constructed on a vacant lot across the street. This future development will offer approximately 30 affordable shared-ownership units, further expanding access to secure and inclusive housing on Chicago’s West Side.

Fifth City Commons integrates residential, commercial and recreational spaces to support the development of the East Garfield Park community. The project’s most significant component is its 43 affordable apartments, ensuring long-term housing stability for a diverse range of residents. In addition to residential units, the development includes commercial spaces intended to foster small local businesses and create employment opportunities. Thoughtfully designed common areas, featuring landscaped areas, stormwater management features, murals and art pieces by local artists and recreational amenities, further enhance the site’s liveability and contribute to the broader community’s environmental resilience and social vitality.

Benefits

Fifth City Commons contributed significantly to the local economy by embedding equity and inclusion during its development and construction stages. From the start, the project prioritised creating job opportunities for local residents, minority- and women-owned businesses, with a strong emphasis on financial inclusion and community engagement. This inclusive approach ensured that the benefits of the investment extended beyond housing, supporting job creation and sustainable economic growth in the neighbourhood. 

Tandem Ventures played a central role in shaping this outcome. As the partner responsible for regulatory compliance and workforce strategy, Tandem implemented systems to manage and enforce funding requirements, trained project teams on compliance protocols, and developed targeted strategies to promote equitable hiring and subcontracting. Their work ensured that the project not only met but exceeded inclusion benchmarks, with 30% of project contracts awarded to minority-owned business enterprises (MBEs) and 10% to woman-owned business enterprises (WBEs). Community engagement was an integral part of their strategy: Tandem worked alongside POAH to hold regular community meetings, incorporating resident feedback into the project and ensuring local voices were reflected in key decisions.

The development’s location, within walking distance of the Blue and Green Train Lines, further amplifies its role as a catalyst for investment in the area through equitable transit-oriented development (ETOD), ultimately increasing the neighbourhood’s economic attractiveness. ETOD is a strategy that promotes equitable economic growth by directing investments to areas near public transit, especially in historically disinvested communities. By combining access to transit with affordable housing, local business support, and community-driven planning, ETOD ensures that long-term residents and small businesses share the economic, social, and environmental benefits of development, reducing displacement and creating more inclusive, opportunity-rich neighbourhoods. By leveraging connectivity to the city and supporting commercial activation, the project is expected to attract additional investments to East Garfield Park. Within its commercial component, the development will host local businesses, creating new pathways for entrepreneurship and long-term local economic resilience.

On top of providing a grant to the project, SPARCC served as a consultant, supporting Elevated Chicago in recruiting and assisting local small businesses to occupy and lease new commercial spaces in the development. These efforts align with ETOD principles that emphasise supporting local businesses and cultivating wealth within communities of colour. POAH also formalised a commitment to reinvest the developer fee into arts, youth programming, job training, and affordable housing initiatives; the developer has further ensured that the economic gains generated by the project remain within the community.

The project combines cutting-edge sustainability technologies with innovative modular construction to significantly reduce environmental impact while boosting energy performance and climate resilience. Designed to meet Passive House standards, the most rigorous benchmark for energy-efficient construction, the building incorporates an airtight envelope, high-performance insulation, triple-glazed windows, and an all-electric HVAC system with heat recovery ventilation. Passive House buildings are defined by their ability to maintain year-round indoor comfort and air quality while using up to 80% less energy for heating and cooling than conventional structures. This is achieved through a highly insulated, airtight design, advanced ventilation systems, and the elimination of thermal bridging, resulting in both environmental and health benefits for residents.

The facility operates entirely using electricity. Rooftop solar panels will supply over two-thirds of the building’s total energy demand, with the remaining offsets covered through off-site community solar, ensuring a low-emission, low-cost energy profile for residents. These features enable reduced utility bills and long-term affordability.

The modular construction approach further minimises material and energy waste during production and significantly reduces construction time. Prefabricated modules are manufactured in a controlled indoor facility using non-combustible steel-frame construction and high-performance insulating panels, which enhance building envelope integrity and minimise thermal bridging. Compared to traditional construction, this method results in up to 20% less embodied carbon and 80% faster assembly, lowering both emissions and logistical burdens.

On-site resilience features include rain gardens and green infrastructure that process 100% of stormwater on-site, helping to mitigate flood risk and reduce pressure on municipal systems. Native landscaping and a green roof help counteract the urban heat island effect while promoting biodiversity. Additional environmental amenities include electric vehicle charging stations, ample bicycle parking, and a community recycling and composting facility.

Fifth City Commons prioritises inclusivity and community well-being by providing affordable housing units. It was conceived with a clear commitment to community well-being, equity, racial justice and anti-displacement, particularly in a neighbourhood which has long suffered from systemic disinvestment and is now confronting the pressures of gentrification. With property values in East Garfield Park having risen by 140% since the 2008 housing crisis, affordable housing is critical to ensure that longtime residents are not driven out of their community. Fifth City Commons provides 43 affordable homes for families earning between 30 and 80% of the area median income (AMI), directly addressing rising rents and housing insecurity in the neighbourhood. The planning process followed a participatory approach, integrating extensive community input, gathered through surveys, in-person and online meetings and outreach efforts, to inform the building’s design and intended uses.

Fifth City Commons also incorporated public art that reflects and celebrates local culture. Local artists' murals appear inside shared spaces and on the building’s exterior. Notably, the west and east walls feature brickwork inspired by Adinkra symbols, a traditional set of West African symbols representing ideas and values, such as knowledge, resilience, and authenticity, chosen by community members.

As a SPARCC-supported initiative, Fifth City Commons advances racial equity by ensuring that new investments' social, economic, and environmental benefits flow to residents and small businesses traditionally excluded from planning and decision-making. 

This commitment is realised through a close collaboration with SPARCC’s regional partner, Elevated Chicago, an initiative that aims to transform the areas surrounding transit stations into equitable, resilient, and culturally vibrant community hubs. Elevated Chicago’s partners, including community-based organisations, public health advocates, affordable housing groups, and arts institutions, collectively work to address racial inequities by turning the ½-mile radius around transit into centres for health, climate resilience, and local economic development.

Coherently with the equitable transit-oriented development objectives of the City of Chicago, which emphasise investment in marginalised communities, prevention of displacement in areas undergoing rapid gentrification, and the promotion of affordable, walkable neighbourhoods, Fifth City Commons has been designed to reflect the principles of equitable transit-oriented development. This encompasses the utilisation of its strategic proximity to transit to decrease car dependency and reduce emissions while fostering inclusive economic growth. Consequently, the development not only alleviates the risk of displacement resulting from swift development near transit but also activates the potential of underutilised land and infrastructure to serve the long-term benefit of the community.

In 2023, the Fifth City Commons development achieved the Phius CORE 2021 Design Certification, confirming its adherence to passive building design standards, durability, health, safety and cost optimisation.

Finance model

Fifth City Commons was developed through a mix of public and private funding. The City of Chicago was the leading public actor involved, alongside the Illinois Solar for All state programme. Private funders include BMO Harris Bank, which provided construction financing, and the NGO Enterprise Community Partners, which provided equity funds for LIHTC and renewable energy credits.

The financing structure for Fifth City Commons combines public and private funding, using a diverse mix of tools including equity investments, loans, and value capture mechanisms. In total, the project mobilised approximately USD 38 million. A substantial portion of the funding was provided by the City of Chicago through various financial instruments designed to support affordable housing and urban regeneration.

One key tool used was tax-exempt bonds, which allow cities to borrow money at lower interest rates to support projects that serve a public good. In this case, the City issued USD 20 million in bonds to support the development.

Another primary source of funding was the Low-Income Housing Tax Credit (LIHTC) programme, which is the main federal tool in the United States for encouraging private investment in affordable rental housing. It provides tax credits to investors over a ten-year period in exchange for financing the construction or rehabilitation of affordable housing. For Fifth City Commons, the City of Chicago, through its Department of Housing, awarded 4% LIHTC credits, generating approximately USD 1.7 million in funding. In return, the project is required to keep a portion of its housing units affordable for at least 30 years.

The City also contributed USD 6.5 million through Tax Increment Financing (TIF), a value capture mechanism that allows cities to fund development by using the future increase in property taxes generated by that development. In this case, the anticipated rise in property values and tax revenues resulting from the project helps fund its construction.

Further contributions from the City of Chicago included a write-down of the City-owned land valued at USD 702,000, which reduced the overall cost of the project, and donation tax credit equity worth USD 343,000. The City also provided three layers of secondary loans totalling USD 12.7 million, which filled remaining financing gaps and helped ensure the project’s feasibility.

Additionally, the project received support from the federal HOME Investment Partnerships Program, which helps local governments create and maintain affordable housing. This program requires cities to match a portion of the federal funds with their own contributions. Fifth City Commons benefited from this grant, along with an energy grant of USD 861,000 to support sustainable building features.

Equity investment was provided by Enterprise Community Partners, a non-profit that specialises in financing affordable housing. The organisation contributed approximately USD 18 million by purchasing both the LIHTC and renewable energy credits, allowing the project to attract private capital. Construction financing was secured through BMO Harris Bank.

Several sustainability-focused instruments were also used. The utility company ComEd supported the project through energy efficiency incentives and a Passive House new construction grant. Additionally, funding came from the Illinois Solar for All programme, which helps make solar energy accessible to low-income communities. This programme enabled the installation of rooftop solar panels at no extra cost to future residents.

Finally, the project received a USD 372,000 grant from the Strong, Prosperous, and Resilient Communities Challenge (SPARCC). SPARCC is a national initiative that promotes equitable development and climate resilience. Its support for Fifth City Commons focused on reducing displacement risks, enhancing housing stability, and involving Black- and locally owned businesses in the ground-floor retail space. SPARCC is led by Enterprise Community Partners, the Low-Income Investment Fund, and the Natural Resources Defense Council, with funding from major philanthropic foundations.

References and Credits

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Image credit: Fifth City Commons (2025). Homepage https://fifthcitycommons.org/