Earlier this week, after a four-hour hearing, the Chicago City Council’s Committee on Housing and Real Estate recommended approval of a three-year pilot initiative to expand and modify the City of Chicago’s Affordable Requirements Ordinance (the “ARO”) in certain areas along the Milwaukee Avenue Corridor and portions of the Near North and Near West areas of Chicago.
It is expected to be approved by the full City Council on October 11, 2017, and will take effect upon its approval and passage. Only the following pending projects in these pilot areas are exempt: (1) an ordinance authorizing a City land sale or financial assistance that is introduced by November 1, 2017; (2) planned developments that receive a favorable recommendation from the Plan Commission by November 1, 2017 (effectively, these must be heard by the Plan Commission at its October 19 hearing); or (3) zoning amendment applications that receive a favorable vote from the Committee on Zoning by November 1, 2017.
The Pilot Program will affect distinct areas that the City has identified as the Milwaukee Corridor Pilot Area, and the Near North/West Pilot Area, which is split into two separate zones. The two pilot areas, and the two zones within the Near North/Near West Pilot Area have differing requirements. The City has created helpful fact sheets showing the areas along with the basic parameters of the ordinances, and how they compare to the wider 2015 ARO. The maps and ordinances can be found at the links below:
Milwaukee Corridor ARO Pilot Area Map
Near North/Near West ARO Pilot Area Map
ARO Pilot Ordinance: Milwaukee Corridor
ARO Pilot Ordinance: Near North/Near West
Milwaukee Pilot Area
Near North/Near West Pilot Area
Near North Zone:
Near West Zone:
An additional provision in both proposed ordinances permits the Commissioner of the Department of Planning and Development to enter into service agreements with outside providers to market affordable housing created under the Pilot Program, to help with income qualification of potential tenants and homebuyers of such affordable units and to conduct educational programs to ensure units are marketed appropriately. The Commissioner will have access to funds from the Affordable Housing Opportunity Fund for providing these services.
It should be noted that several aldermen, including Alderman Dowell (3rd Ward), Alderman Sophia King (4th Ward), and Alderman Arena (45th Ward) indicated a desire to evaluate the possibility of including similar expanded ARO pilot programs in their wards.
If you have any questions about these expanded ARO requirements, please contact Katriina McGuire or Bernie Citron.
Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you (an ‘engagement letter’).
By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and, further, even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you. Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.