Samuel Paler-Ponce, MPA
Associate Editor
Loyola University Chicago School of Law, JD 2026
In December 2023, Chicago Mayor Brandon Johnson took a significant step toward revolutionizing the city’s real estate development process by signing Executive Order No. 2023-21. This directive tasked 14 city departments with identifying the key barriers that complicate housing and commercial development that subsequently lead to delays, increased costs, and uncertainty. The goal was to find solutions to accelerate the approval processes, reduce regulatory redundancies, and streamline compliance with city, state, and federal regulations, ultimately making Chicago’s real estate development process more efficient and predictable.
Cut the Tape report
The outcome of this extensive review was a report with over 100 recommendations. The Cut the Tape report focuses on improving communication and accountability, optimizing city resources, and eliminating unnecessary steps in the development process, all while ensuring strict adherence to regulatory requirements. The city identified its top 10 goals, including: creating a new Director of Process Improvement role in the Mayor’s Office, initiating expedited reviews for affordable housing projects, adopting transformative zoning changes, and streamlining design reviews to ensure they meet regulatory standards without unnecessary delays, among others.
The efforts initiated by Mayor Brandon Johnson through Executive Order No. 2023-21 mark a significant shift in how Chicago approaches real estate development with a strong emphasis on regulatory compliance. By focusing on eliminating regulatory barriers, streamlining compliance processes, and fostering greater cross-department coordination, the city is laying the groundwork for a more efficient and predictable development process.
Implications of zoning changes
Zoning and land use policies are critical in shaping the character and quality of Chicago’s neighborhoods and ensuring that development complies with the city’s comprehensive plan and zoning regulations. However, overly restrictive zoning regulations have created a significant bottleneck in the approval process, impeding the timely and cost-effective completion of development projects.
Recognizing this, Mayor Johnson is advocating for transformative zoning changes that aim to streamline regulatory compliance in the development process across the city. One of the most ambitious proposals is the elimination of minimum parking requirements citywide. This move represents a bold shift in urban planning philosophy, prioritizing denser, more walkable, and transit-friendly developments over car-centric designs while easing the regulatory burden on developers.
For developers, the implications of these zoning changes are profound in terms of regulatory compliance. Eliminating minimum parking requirements could significantly reduce the time and cost associated with securing entitlements and complying with zoning codes, as developers would no longer need to allocate large portions of their projects to parking infrastructure. This change also provides greater design flexibility, allowing developers to maximize the use of available land for housing and commercial spaces, aligning with regulatory requirements for urban density and sustainability.
The role of cross-department coordination
A key aspect of streamlining the real estate development process is improving coordination and accountability across the various city departments involved. The creation of a new Director of Process Improvement role in the Mayor’s Office is a crucial step in achieving this goal. This dedicated position will serve as the central point of coordination, ensuring that all departments work together efficiently and effectively to implement the recommendations outlined in the report, while maintaining strict compliance with all relevant regulations.
By fostering greater collaboration between departments, the city can reduce the duplication of efforts and ensure that projects move through the regulatory approval process more quickly and with fewer compliance-related delays. This cross-department coordination is particularly important in complex projects that require input and approvals from multiple agencies.
Addressing compliance challenges in affordable housing development
Chicago is currently facing a significant shortage of affordable housing, with an estimated need for an additional 120,000 affordable units to meet demand. This shortage has made it increasingly difficult for low- and middle-income residents to find housing that meets their needs. Mayor Johnson has made it a top priority to accelerate the production of affordable housing in the city.
To address the compliance challenges that often slow down affordable housing projects, the Mayor’s Office is partnering with relevant departments to design an expedited review and approval process specifically for affordable housing developments. This expedited process will encompass various critical regulatory reviews, including building permit reviews, accessibility compliance, restoration agreements, and environmental impact assessments. These reviews ensure that all regulatory requirements are met without unnecessary delays.
These projects often face significant delays due to the complexity of navigating multiple regulatory requirements. By creating a more efficient review process that remains fully compliant, the city can help developers bring affordable housing units to market more quickly, helping to alleviate the housing crisis.
In addition to expediting reviews, the city is also looking at ways to provide more support to developers of affordable housing. This includes offering technical assistance to help developers navigate the regulatory landscape and ensuring that city resources are optimized to support compliance with affordable housing regulations.
The path forward
The focus on addressing compliance challenges in affordable housing development is crucial for tackling Chicago’s housing crisis. By expediting reviews and offering additional support to developers, the city can accelerate the production of much-needed affordable housing units. If successfully implemented, these changes have the potential to transform the city’s development landscape, making it easier and more efficient to build the housing and commercial spaces that Chicagoans need.