REALTOR® efforts ensure affordable housing ordinance reflects developers’ needs

 

Image/Bigstock

The City of Chicago passed revisions to the Affordable Requirements Ordinance after over a year and half of intense, often contentious debate on the future of development of residential units.

Brian Bernardoni

The ordinance was created 11 years ago and updated again in 2010. It provides guidelines for providing affordable housing in the city.

REALTOR® advocacy was at the table from the very beginning as Chicago Mayor Rahm Emanuel appointed IAR GAD Brian A. Bernardoni to serve on the task force making recommendations on the new ordinance.

The Home Builders Association of Greater Chicago which ultimately became part of a real estate coalition that worked in collaboration through the arduous process.

The key takeaways about today’s ordinance are:

  • Developers will see a reduction in in-lieu fees outside of the Downtown Zoning Districts
  • There is phase in on increased fees throughout the ordinance
  • The option to develop off-site affordable units rather than only on site

Perhaps the biggest win was the collaboration of major real estate interests who were able to persuade the Mayor’s office and the City Council to be sensitive to development issues. All in all, REALTOR® advocacy was able to compel over 20 major changes in the ordinance to Keep Chicago building and REALTORS® selling.

There will be slight increase in fees for higher income areas, and a reduction in low- to moderate-income areas. Increased fees downtown will be phased in over 18 months with the first increase phased in in 6 months and the balance in 18 months.

Leave a Reply

Your email address will not be published. Required fields are marked *