The center already has 124 assisted living units for seniors. The new housing will be built on nearby vacant land.
The federal program includes rent subsidies to make the new housing affordable.
"The funding will allow us to build a $14.6 million, 60-unit rental building on this site that will also include a 7,000 square-foot City Department of Senior Services Satellite Center," Daley said. "It will provide the comforts of home-like atmosphere, combined with supportive services and programs that will give residents the confidence and independence to enjoy life to the fullest."
One Victory Center resident, Sharon Jordan, thanked the mayor for helping seniors by giving him a quilt.