A nonprofit that helps homeless people is converting a former South Side motel into a 55-room transitional housing facility. BEDS Plus broke ground on the project Friday, April 17, according to a report by Block Club Chicago.
BEDS Plus purchased the Aloha Motel at 8515 S. Cicero Ave. in the Ashburn community for $2.8 million in March and secured $8.5 million in state funding for the renovation project, which carries a total price tag of $14 million.
The facility will offer private rooms with bathrooms, kitchenettes, and storage, plus five wheelchair-accessible units. Services will include job placement assistance, on-site medical care, case management, and housing navigation support delivered through a trauma-informed approach.
“It feels like an apartment, it feels like home, and we can help them start to rebuild their lives and move on to their own homes,” BEDS Plus CEO Tina Rounds told CBS Chicago.
Rounds emphasized the organization’s commitment to pairing quality services with dignified physical spaces that make residents feel welcomed and respected.
BEDS Plus has operated from the Scottsdale neighborhood motel since 2023, serving 658 clients last year. The organization aims to complete construction by February. The shelter will serve individuals, couples, and families experiencing housing instability.

It’s interesting to see a former motel being repurposed like this. How do you think the design will help the community?