Chicago Department of Housing releases Inclusionary Housing Task Force Staff Report; public comment being accepted until October 29

On September 14, 2020, the Chicago Department of Housing (DOH) released its Staff Report on Inclusionary Housing and opened a 45-day public comment period on the topic.

The report outlines the history and evolution of the city’s Affordable Requirements Ordinance (ARO) and other existing affordable housing tools used in Chicago and in a few locations elsewhere in the country. First adopted in 2007 and later modified, the ARO requires a minimum affordable housing commitment from certain triggering residential developments that have city involvement, such as projects requiring a zoning change, city financial assistance or the sale of city property. Modifications to the current ARO are anticipated.

The report provides staff recommendations, which include the following:

• Increase the number of units priced at lower area median incomes (AMIs) to be accessible to a larger group of rent-burdened households, perhaps by allowing for a sliding scale that allows for a tradeoff between the minimum number of units required and AMI levels.
• Incentivize larger family-sized units either by a similar sliding scale or utilizing off-site options.
• Modify location requirements for affordable units so that locating units close to the triggering market-rate development is prioritized in gentrifying neighborhoods, and flexibility to deliver units citywide in areas that lack affordable housing is allowed for projects in stable, high-income neighborhoods with less pronounced displacement.
• Encourage the delivery of off-site units by partnering with affordable housing developers and the Chicago Community Land Trust.
• Increase the minimum number of required accessible units and require preferential leasing of affordable units for people with disabilities for some units.
• Create a centralized leasing system for affordable units.
• Retain and add additional geographical classifications to modify affordable requirements based on location.
• Expand existing density and bulk bonuses and consider offering additional bonuses and tax incentives related to affordable housing.

The City is accepting public comment on the report until October 29, 2020. Additionally, the Committee on Housing and Real Estate will hold a subject matter hearing on the report at 10 a.m. on Wednesday, September 23.

It is anticipated that the comments and other outreach by the DOH will inform an ordinance revising the current ARO, which the city expects to be introduced this winter.

For more information about this proposed ordinance, contact any of the members of the Chicago Land Use team at DLA Piper: 

Katie Jahnke Dale
Theodore J. Novak
Richard F. Klawiter
Paul W. Shadle
Mariah F. DiGrino
Liz Butler
John Gholar