Well, those requirements don't apply to developments outside of CHA land. So there have been several market-rate projects in the Cabrini area on privately-owned land (Xavier, Basecamp townhomes, SL by Belgravia, stuff along Larrabee). The only requirement they faced was a 20% affordable requirement instead of the 10% ARO that applied elsewhere in the city. No public housing requirements for those, although CHA can and has purchased/rented a few units in those buildings at market rate to house their tenants. But now the 20% affordable has been formalized into the ARO citywide, so there is effectively no difference between the Cabrini area and the rest of the city assuming your site is privately-owned.
The gas station at Division/Halsted is on private land so they could have easily done housing or mixed use there, they just didn't want to. The zoning is B3-5 which would have allowed some pretty dense housing.
The requirements here are super complicated and honestly make my head spin sometimes. That said, the CHA land is horrifically screwed up by the consent decree which is basically tailor-made to ensure that the land doesn't get redeveloped.
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la forme d'une ville change plus vite, hélas! que le coeur d'un mortel...
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