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The company occupies 45,000 square feet at the Fillmore Center, a $40 million development project that will bring more businesses to North Lawndale and create more jobs.
Council members from the Southwest and Northwest sides, with wards dominated by single-family homes, said allowing homeowners to turn attics, basements and garages into revenue-generating "granny flats" could create problems.
Chicago House will offer housing to 13 families on West 63rd Street in a neighborhood with a high rate of HIV infection. The site will also contain office space for staffers overseeing residential units citywide.
The owners plan to demolish three century-old buildings to make way for new apartments with rooftop pickleball courts and parking.