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