The $21.2-million project will receive a $3.5-million tax increment financing subsidy to compensate New West-Kedzie LLC for setting aside 25% of the units to buyers earning 80% of the area's median family income or less. It also will help compensate Mazola's group for taking a risk in a North Lawndale area that has lost more than 30% of its housing units in recent years, according to department of planning and development officials.

With the TIF subsidy, New West-Kedzie LLC can expect an 11.7% return on its investment in the project, says Dina Wayne of the department of planning and development. The subsidy was endorsed Tuesday by the city's community development commission.

Mazola and partner August P. Mauro, also a broker at New West Realty little more than two miles east of the development site, turned in the only response to a city request for proposals, which sought a target price of $990,000 for the city-owned lots.

"When this opportunity came up, we looked at it as a chance to revitalize North Lawndale," says Mazola, a broker and developer involved in numerous projects on the Near West Side for more than 30 years. "We look at it as a good way to build some quality housing in the city."

Market-rate prices will range from $132,900 for a one-bedroom condominium to $385,900 for a single-family home. Affordable units will range from $103,500 for a one-bedroom to $128,500 for a three-bedrooom units. The development will include a mix of face-brick and sided buildings, including two- and three-flats, duplexes, townhouses and single-family homes.

The developers' equity is in place, and Mazola adds negotiations are continuing with three banks. "It's just a question of which one we would want to use," he says.

Mazola will be responsible for getting rezoning for the property, which stretches from Flournoy to Taylor streets, from the city council. Rezoning is expected as the department of planning and development concedes the blighted stretch of S. Kedzie Avenue cannot support the retail development that would be allowed under the current B4-2 and C1-2 zoning. Meanwhile, retail development has succeeded to the south on Roosevelt Road.