Tag:Chicago Affordable Housing
Can Cutting Red Tape Improve Chicago’s Affordable Housing Crisis?
On April 5th, 2024, Chicago Mayor Brandon Johnson published the Cut the Tape Report as part of his administration’s focus on confronting Chicago’s affordable housing shortage. The report marks the completion of the first step in the process put in place by Mayor Johnson’s Executive Order 2023-21. The order aimed to identify inefficiencies and redundancies in the city’s administrative processes to shorten Chicago’s residential and commercial development timelines. The report resulted from collaboration between fourteen city departments, numerous external stakeholders, and six peer cities, identifying over 100 recommendations for improvements to the development process.
Streamlining Regulatory Compliance in Chicago’s Real Estate Development
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.
Affordable Housing: No Oversight, No Progress
Originally passed in 2003, the Illinois Affordable Housing Planning and Appeal Act (AHPAA) requires cities with populations of at least 1,000 residents and less than ten percent affordable housing to submit their affordable housing plans to the state. Gail Schechter sits on the Illinois Housing Appeals Board, but she has never heard a case. The board was brought together in 2009 and fully appointed by Governor Pat Quinn in 2012 to provide checks and balances while Illinois communities create affordable housing. Affordable housing developers who believe they have been treated unfairly or rejected by a municipality are given a chance to appeal a city’s decision to reject their project. However, developers are not utilizing the appeals process. According to Schechter via WBEZ, “a developer just wants to do business. If they can’t build what they want to build, they’ll go to another community.”
Chicago Legalizes Accessory Dwelling Units in Effort to Increase Affordable Housing Supply
Starting May 1, 2021, Accessory Dwelling Units (“ADUs”) will be legalized in five pilot areas around the city of Chicago. Chicago faces a declining population, a slow homebuilding pace, and an affordable housing gap of approximately 116,000 units. These ADUs are intended to increase access to affordable housing, but the ordinance isn’t expected to make a large impact on Chicago’s affordable housing gap.