Lightfoot administration unveils updated affordable housing ordinance
Today, Chicago Mayor Lori Lightfoot introduced a new affordable requirements ordinance (ARO) to the Chicago City Council which would expand the City’s affordable housing requirements for developers of market-rate residential projects.
Projects approved prior to October 1, 2021 would not be affected, so long as a building permit is applied for prior to October 1, 2025. In the case of a planned development (PD) approved prior to October 1, 2021, the PD “sunset” period would apply. Projects in pilot zones would remain subject to the pilot zone requirements if they are approved prior to October 1, 2021.
The new 2021 ARO would expand the trigger for the affordability requirements to include certain administrative approvals, including minor changes to PDs, and FAR and dwelling unit transfers among PD subareas.
With the exception of low-moderate income areas, the new 2021 ARO would increase the number of affordable units required to be provided from 10 percent to up to 20 percent of the total units. Developers would be able to provide less than 20 percent by providing units at lower affordability levels. The new ordinance would also increase the number of units a developer must deliver from 25 percent to 50 percent of the required units. The first 25 percent would be required to be provided on-site. The second 25 percent could be provided either on-site or off-site. Developers would be able to provide on- or off-site units or pay an in-lieu fee for the remaining 50 percent of the required units. The per-unit fee would vary depending on the location of the project and affordability levels of the on-site units.
Other notable provisions include authorizing the Housing Commissioner to reduce the required number of affordable units in exchange for providing units with more bedrooms. It also loosens the one-mile radius requirement applicable to off-site units, but retains some control over where off-site units can be located to promote equitable distribution in certain targeted areas.
The ordinance still requires approval by the Committee on Housing, and then by the full City Council.
For more information about this ordinance, contact any of the members of the Chicago Land Use team at DLA Piper:
Mariah F. DiGrino
Theodore J. Novak
Richard F. Klawiter
Paul W. Shadle
Katie Jahnke Dale
John Gholar
