In spring 2000, while renovation of Phase I was underway, work began on the design of Archer Courts Phase II, a new townhouse development planned for the vacant land to the west. The design connects the renovated and new buildings through continuous walkways, complementary landscaping, and compatible building systems.

Construction of Phase II began in September 2002. The development consists of nine buildings containing forty-three three-story townhouses, each with its own garage and roof deck. To maintain affordability, the design employs a pre-engineered, load-bearing, precast concrete panel system. Shop-fabricated steel window bays, aluminum windows, pre-engineered wood trusses, and precast concrete stairs, combined with the precast wall panels, create a "kit of parts" that significantly increased construction speed and reduced labor costs.

Archer Courts Phase II is part of the City of Chicago's Homestart program, an initiative by Mayor Daley to encourage homeownership through funding that supports the development of slightly below-market-rate properties. The development provides a mix of market-rate and below-market-rate homeownership opportunities alongside CHA rental units.