Mercy Housing Lakefront Saves The Leland for Tenants
The nonprofit acquires the 137-unit building in Uptown, keeping rents at 30 percent of tenant income.
Updated on Oct. 26, 2026 in Apartments
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Mercy Housing Lakefront officially acquired The Leland at 1207 W. Leland St. in 2025, moving to preserve it as affordable housing following years of foreclosure proceedings. Tenants currently paying 30 percent of their income in rent will remain as the building transitions through upcoming renovation plans.
Why it matters
The acquisition prevents displacement for residents in an Uptown housing market where 40 percent of total single-room occupancy stock was lost between 2014 and 2024. By stabilizing this historic property, the nonprofit aims to maintain affordable living options in a neighborhood facing significant residential density shifts.
The building currently houses 137 units for residents who pay 30 percent of their income in rent, though that capacity will drop to 107 units following the 2027 renovation. This move addresses a broader trend in which Chicago lost 40 percent of its total SRO housing stock between 2014 and 2024.
The players
Mercy Housing Lakefront
A nonprofit developer that manages affordable housing and provides resident services to low-income households.
Heartland Housing
The former owner of The Leland building that dissolved in 2023.
Community Initiatives
A nonprofit appointed by the city to manage the property as receiver during the foreclosure process.
The details
After the previous owner Heartland Housing dissolved in 2023, The Leland faced foreclosure and failed five city inspections between 2022 and 2024. Mercy Housing Lakefront secured the property using a combination of federal and state grants, tax credits, and private philanthropy. The transition plan includes a full renovation scheduled for 2027 to address building conditions while securing long-term affordability for its current residents.
Timeline
The building was designed in 1926.
The previous owner, Heartland Housing, dissolved in 2023.
Tenants rallied to save the building in 2024.
The building exited foreclosure court in 2025.
A full renovation of the building will begin in 2027.
Money Landscape
The Leland building has been listed on the National Register of Historic Places since 1985, which guides the mandatory preservation standards for its upcoming renovation. This acquisition reflects a regional effort to stem the loss of affordable housing units that has defined Chicago's residential real estate market over the past decade.
Current tenants at The Leland will continue to pay 30 percent of their income in rent as the building transitions under new ownership. Households residing in similar SRO properties should monitor local zoning and nonprofit acquisition news, as these developments can significantly impact long-term rent stability.
The takeaway
The acquisition of The Leland ensures that 107 affordable units remain available in Uptown after the 2027 renovation. Residents and housing advocates can track future developments by monitoring city property records for updates on the upcoming construction timeline and permit filings.
What happens next
A full renovation of the property is scheduled to commence in 2027.
Further reading
For more information on market trends, visit our guide to Apartments.
Source note: This article includes information reported by Block Club Chicago.
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