Harvest Commons is part of a larger effort to improve the area known as the Eisenhower Corridor.
Alderman Walter Burnett says there are plenty of private investors interested in taking on projects in the neighborhood.
"The West Side, and everybody needs to hear me, especially all the developers out here, this is the new frontier," said Burnett.
Harvest Commons will provide 89 low-income studio apartments.
The development features on-site social services.