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Chicago Passes New Affordable Housing Requirements in Three Pilot Zones

On October 11th, the Chicago City Council passed two ordinances creating three new Affordable Requirements Ordinance zones. The new requirements eliminate the option to pay an in-lieu fee in the pilot zones, and require affordable units to be built on-site, or within the same pilot zone. Maps of the pilot zones, provided by Department of Planning and Development, can be found here and here.

Each zone contains slightly different requirements for the percentage of affordable housing which must be included in a development:

  • The Near North Zone requires 20% affordable, with the first 10% on-site or within 2 miles and in the same Pilot zone and/or higher income ARO zone; 10% additional may be built anywhere in the same Pilot zone;

  • The Near West Zone requires 15% affordable, with the first 10% on-site or within 2 miles and in the Pilot zone and/or higher income ARO zone; 5% additional may be built anywhere in the same Pilot zone;

  • The Milwaukee Corridor requires 15% affordable on-site units or 20% off-site units within the same Pilot zone; and

  • Each of the pilot zones will require 20% on-site if the project receives TIF funding.

These new requirements will effect new residential developments in the respective zones that contain 10 or more units and a zoning change, or new residential developments in the respective zones that involve a City land sale, or receive City funding.

© 2017 Foley & Lardner LLP

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About this Author

Matthew Gomez-Mesquita, Foley Lardner Law Firm, Land Use Planner
Land Use Planner

Matthew Gomez is a land use planner with Foley & Lardner LLP, where he is a member of the Zoning and Land Use team within the Real Estate Practice at the firm’s Chicago office.

Mr. Gomez brings keen insight into the planning process, having previously worked as a planner and project manager for the New York City Department of Parks and Recreation and the Naval Facilities Engineering Command in Washington, D.C.

312-832-4763
Michael Noonan, Foley Lardner Law Firm, Real Estate Attorney
Special Counsel

Michael Noonan is a special counsel and real estate business lawyer with Foley & Lardner LLP. He focuses his practice on obtaining land use and zoning entitlements and working to build consensus between property owners, government officials, and community groups.

Mr. Noonan has experience in a wide variety of land use matters, including driving the site acquisition and permitting processes for a large-scale wireless communication construction project, assisting with eminent domain proceedings in Illinois and managing property tax appeals for all types of property in Cook County, Illinois. He also has a background researching legal issues concerning federal, state, and local environmental laws and regulations and assisting on issues surrounding public guardianship, and estate planning matters.

312-832-5119
Donna Pugh, Foley Lardner Law Firm, Real Estate and Business Attorney
Partner

Donna J. Pugh is a partner and real estate business lawyer with Foley & Lardner LLP where she focuses on obtaining land use and zoning entitlements on behalf of her retail, health care and corporate clients. With her approach of bridging the gap between client, civic and municipal needs, Ms. Pugh has an exceptionally high success rate of securing necessary approvals for land development projects in the Chicago area. She is a member of the firm’s Real Estate Practice and Health Care Industry Team.

312-832-4596