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Mercy Housing buys one of Uptown's last SROs out of foreclosure, preserving it as affordable housing

Mercy Housing buys one of Uptown's last SROs out of foreclosure, preserving it as affordable housing

Money Moves Chicago, IL local

The 100-year-old Leland building will undergo a full renovation in 2027; tenants pay 30% of income in rent

Today: Block Club Chicago reports the rescue

Overview

Updated 1 hour ago

One of Uptown's last single-room occupancy buildings will stay affordable. Mercy Housing Lakefront bought the century-old Leland out of foreclosure after a three-year tenant campaign, and plans a full renovation starting in 2027. The nonprofit will cut units from 137 to 107 while modernizing them.

The building nearly joined a long line of SROs lost to redevelopment in Uptown. Its previous owner, Heartland Housing, dissolved in 2023 after financial turmoil, losing 14 affordable properties and putting about 140 Leland tenants at risk. Tenants, backed by ONE Northside, rallied, fought in foreclosure court, and pushed city and state officials to assemble grants, tax credits, and private funding.

Why it matters

If Uptown's SRO stock keeps shrinking, the low-income and formerly homeless residents who depend on it lose their foothold in the neighborhood.

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Key Indicators

107
Affordable units after renovation
Down from 137 current units in the Leland.
30%
Maximum share of tenant income paid as rent
Supported by Chicago Housing Authority and federal housing project vouchers.
14
Affordable properties Heartland Housing lost in 2023
The Leland was one of them, putting roughly 140 tenants at risk.
5
Failed city inspections between 2022 and 2024
Mostly for elevator and maintenance issues, per city records.

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People Involved

FF
Fatmah Farraj
Interim president, Mercy Housing Lakefront
Leading the Leland acquisition and planned 2027 renovation
SG
Sue Gries
Grassroots leader, ONE Northside
Campaign organizer for Save the Leland
KT
Keith Terry
Leland tenant
Resident; publicly supported the preservation campaign
DH
Dordie Hester
Housing justice organizer, ONE Northside
Advocate for the Leland's funding structure

Organizations Involved

MH
Mercy Housing Lakefront
Nonprofit affordable housing developer
Owner of the Leland; planning 2027 renovation

Chicago arm of Mercy Housing, one of the nation's largest nonprofit housing organizations.
HH
Heartland Housing
Former nonprofit housing provider
Dissolved in 2023 after financial turmoil

Nonprofit that owned the Leland and 13 other affordable properties; dissolved in 2023.
ONE Northside
ONE Northside
Community organizing group
Led the Save the Leland campaign

Community organization that coordinated tenant organizing, rallies, and advocacy for the Leland.
CI
Community Initiatives
Nonprofit receiver
Court-appointed receiver during the Leland's financial crisis

Nonprofit appointed by the city to oversee the Leland during receivership.

Timeline

1926 2027

11 events Latest: Today Showing 8 of 11
Tap a bar to jump to that date

  1. Renovation scheduled to begin

    Upcoming Planned

    Mercy Housing plans full rehab with new kitchens, laundry, and fitness room.

  2. Block Club Chicago reports the rescue

    Today News

    Article details the acquisition, planned renovation, and tenant impact.

  3. Residents and officials celebrate preservation

    Celebration

    About 60 tenants and organizers gather in the building's community room.

  4. Building leaves foreclosure; Mercy Housing takes ownership

    Ownership

    City and state secure funding via grants, tax credits, and philanthropy.

  5. Rally and foreclosure court push

    Rally

    About 100 people rally; tenants advocate for themselves in foreclosure court.

  6. Heartland Housing dissolves

    Financial Crisis

    Leland enters receivership and foreclosure proceedings after owner's collapse.

  7. Save the Leland campaign launches

    Campaign

    Tenants and ONE Northside begin organizing to preserve the building.

  8. Building fails five city inspections

    Inspection

    Failures mainly over elevator and maintenance issues, city records show.

  9. $15 million renovation preserves SRO use

    Preservation

    Building updated and kept as single-room occupancy housing.

  10. Added to National Register of Historic Places

    Preservation

    The Leland earns historic designation.

  11. Leland opens as apartment hotel

    Opening

    Spanish-Baroque revival building designed by Henry Dubin and Abraham Eisenberg.

Scenarios

1

Leland renovation begins on schedule in 2027

Likely Resolves by End of 2027

Discussed by: Mercy Housing Lakefront and city housing officials

Mercy Housing has committed to a 2027 start. The organization has delivered similar SRO rehabs in Uptown, including the Miriam Apartments, which completed a gut rehab with layered public and private funding. If the grant, tax credit, and philanthropic funding holds, construction will begin as planned and tenants will move back in phases.

2

Leland renovation delayed or scaled back

Possible Resolves by Q2 2028

Discussed by: Affordable housing developers tracking layered funding projects

Affordable housing projects that depend on multiple funding sources often slip. Construction costs could rise, a grant could fall through, or permitting could take longer than expected. The unit count could also drop below the planned 107 if the scope changes.

3

Leland rescue spurs preservation of another Uptown SRO

Uncertain Resolves by End of 2028

Discussed by: ONE Northside and housing advocates

The Save the Leland playbook, tenant organizing, foreclosure court advocacy, and assembled public-private funding, could be applied to other at-risk SROs in Uptown. The neighborhood has lost many such buildings to redevelopment, and advocates say the Leland shows a viable alternative exists.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2014

Lawrence House conversion to luxury apartments (2014)

Lawrence House, an Uptown building originally opened as a luxury apartment hotel in the 1920s, was subdivided into single-room occupancy units during the Great Depression. In 2014, developer Cedar Street Company converted it into luxury apartments, displacing the low-income residents who had lived there.

Then

Longtime residents left as the building was renovated and re-rented at market rates.

Now

The conversion became a reference point for Uptown's gentrification and the steady loss of its SRO stock.

Why this matters now

Shows what could have happened to the Leland without the nonprofit purchase: the neighborhood's pattern has been conversion, not preservation.

Late 1970s - early 1980s

Uptown arson-for-profit wave (late 1970s - early 1980s)

As Uptown redevelopment picked up in the 1970s, landlords and developers used arson to clear tenants from SRO buildings slated for renewal. Community groups documented fires and deaths, and tenant unions organized rent withholding and protests against what they called 'arson for profit.'

Then

Organizing pushed back against the arson wave, though it took years and drew citywide attention to the neighborhood.

Now

The era entrenched tenant organizing as a force in Uptown's housing politics.

Why this matters now

Uptown's history of displacement battles frames why the Leland's preservation matters to residents: it is the latest chapter in a long fight over who gets to live there.

Mid-2020s

Miriam Apartments modernization (mid-2020s)

Mercy Housing Lakefront modernized the Miriam, a 1925 SRO in Uptown, spending $20.5 million to convert shared bathrooms and kitchens into private ones. The project added amenities and secured 20-year project-based rental assistance for all 66 units. Residents began moving back in during the spring after the work.

Then

The building's 66 units remain affordable, with residents paying no more than 30% of income.

Now

The Miriam shows Mercy Housing can execute SRO rehabs with complex funding in this neighborhood.

Why this matters now

Serves as Mercy Housing's template and track record for the Leland project: the same nonprofit, the same neighborhood, the same approach.

Sources

(3)
Block Club Chicago dis-placements.com Housing Finance