The Chicago City Council this month approved Mayor Richard M. Daley's proposed multifaceted affordable housing initiative.
The City's initiative is designed to address the rising cost of housing in the city by keeping at least 20 percent of units affordable in any project that receives City financing, while projects using City-subsidized land would be required to keep at least 10 percent of the units affordable. As an alternative to hard units, developers could donate to a new affordability fund, which will be used toward the creation of affordable housing citywide.
Under the new initiative, for-sale units will have affordability requirements geared to a household at 100 percent of area median income. Area median income is $75,400 for a family of four. Rental units will be affordable to households at 60 percent of area median income or, roughly, $45,240 for a family of four.
Under Chicago Partnership for Affordable Neighborhoods (CPAN), the Department of Housing currently supports the creation and preservation of affordable housing in appreciating neighborhoods by encouraging developers of market-rate housing to include at least 10 percent affordable units in their developments.
In return, the City helps builders and developers expedite the permit process, absorb permit fees and identify qualified homebuyers. As part of the program, the City also offers purchase price assistance to income eligible homebuyers.
Mayor Daley said that the affordable housing initiative builds on the City's current five-year, $1.4 billion affordable housing plan by continuing to invest in projects that improve neighborhood quality of life. By increasing home ownership and rental options in the City, the program brings a healthy economic mix of affordable and market-rate units to neighborhoods throughout Chicago. The initiative works to continually support the development of affordable housing.
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