Under a proposal approved by the committee, the city would issue revenue bonds for up to $15 million and lend the money to Renaissance Saint Luke, the developers of a property at 150l W. Melrose.

The $34 million project represents the latest collaboration between the Chicago developer The Renaissance Companies and Saint Luke Church in their effort to expand affordable housing for the city's elderly. It will be located just one block from the Renaissance Saint Luke development at 5101 Belmont, which offers independent living apartments for the elderly.

The development will consist of roughly 100 units. Ninety percent of them will rent for $533  a month. The remainder will rent at market rates -- between $2,500 and $3,000 per month.

The project is geared toward seniors who need assistance with daily tasks like cooking, dressing, and driving, according to Nancy Kapp, president of The Renaissance Companies.

Construction is slated to begin in March 2008 and wrap up in July 2009, according to Kapp.

The bonds do not require repayment from city tax money. Instead, revenue from housing rentals will repay the bonds.