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MUNICIPAL CODE OF CHICAGO
TITLE 1 GENERAL PROVISIONS
TITLE 2 CITY GOVERNMENT AND ADMINISTRATION
CHAPTER 2-4 MAYOR
CHAPTER 2-8 CITY COUNCIL AND WARDS OF THE CITY
CHAPTER 2-12 CITY CLERK
CHAPTER 2-14 DEPARTMENT OF ADMINISTRATIVE HEARINGS
CHAPTER 2-16 ANIMAL CARE AND CONTROL*
CHAPTER 2-20 DEPARTMENT OF AVIATION
CHAPTER 2-21 RESERVED*
CHAPTER 2-22 DEPARTMENT OF BUILDINGS
CHAPTER 2-23 RESERVED*
CHAPTER 2-24 RESERVED*
CHAPTER 2-25 DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION
CHAPTER 2-26 RESERVED*
CHAPTER 2-28 DEPARTMENT OF CULTURAL AFFAIRS AND SPECIAL EVENTS
CHAPTER 2-29 OFFICE OF EMERGENCY MANAGEMENT AND COMMUNICATIONS
CHAPTER 2-30 MULTIAGENCY REGULATION OF IMPLOSIONS*
CHAPTER 2-31 DEPARTMENT OF THE ENVIRONMENT*
CHAPTER 2-32 DEPARTMENT OF FINANCE
CHAPTER 2-36 FIRE DEPARTMENT
CHAPTER 2-38 RESERVED*
CHAPTER 2-40 CITYWIDE LANGUAGE ACCESS TO ENSURE THE EFFECTIVE DELIVERY OF CITY SERVICES*
CHAPTER 2-44 DEPARTMENT OF HOUSING*
CHAPTER 2-45 DEPARTMENT OF PLANNING AND DEVELOPMENT
CHAPTER 2-48 RESERVED*
CHAPTER 2-50 DEPARTMENT OF FAMILY AND SUPPORT SERVICES
CHAPTER 2-51 DEPARTMENT OF FLEET AND FACILITY MANAGEMENT*
CHAPTER 2-52 RESERVED*
CHAPTER 2-53 CITY COUNCIL OFFICE OF FINANCIAL ANALYSIS*
CHAPTER 2-55 RESERVED*
CHAPTER 2-56 OFFICE OF INSPECTOR GENERAL
CHAPTER 2-57 RESERVED*
CHAPTER 2-60 DEPARTMENT OF LAW
CHAPTER 2-64 MUNICIPAL LIBRARIES
CHAPTER 2-68 DEPARTMENT OF TECHNOLOGY AND INNOVATION*
CHAPTER 2-70 RESERVED*
CHAPTER 2-72 RESERVED*
CHAPTER 2-74 DEPARTMENT OF HUMAN RESOURCES*
CHAPTER 2-76 RESERVED*
CHAPTER 2-78 CIVILIAN OFFICE OF POLICE ACCOUNTABILITY
CHAPTER 2-80 COMMUNITY COMMISSION FOR PUBLIC SAFETY AND ACCOUNTABILITY*
CHAPTER 2-84 DEPARTMENT OF POLICE
CHAPTER 2-92 DEPARTMENT OF PROCUREMENT SERVICES*
CHAPTER 2-96 OFFICE OF PUBLIC SAFETY ADMINISTRATION*
CHAPTER 2-100 DEPARTMENT OF STREETS AND SANITATION*
CHAPTER 2-102 DEPARTMENT OF TRANSPORTATION
CHAPTER 2-106 DEPARTMENT OF WATER MANAGEMENT
CHAPTER 2-108 RESERVED*
CHAPTER 2-112 DEPARTMENT OF PUBLIC HEALTH
CHAPTER 2-116 ZONING AND EXAMINATION BOARDS
CHAPTER 2-120 COMMISSIONERS AND COMMISSIONS
CHAPTER 2-124 COMMUNITY DEVELOPMENT COMMISSION
CHAPTER 2-132 RESERVED*
CHAPTER 2-140 PUBLIC BUILDING COMMISSION
CHAPTER 2-148 CHICAGO COMMITTEE ON URBAN OPPORTUNITY
CHAPTER 2-150 RESERVED*
CHAPTER 2-151 EMPOWERMENT ZONE / ENTERPRISE COMMUNITY COORDINATING COUNCIL
CHAPTER 2-152 OFFICERS AND EMPLOYEES
CHAPTER 2-154 DISCLOSURE OF OWNERSHIP INTEREST IN ENTITIES
CHAPTER 2-156 GOVERNMENTAL ETHICS
CHAPTER 2-157 LARGE LOT PROGRAM
CHAPTER 2-158 SALE OF SURPLUS LAND
CHAPTER 2-159 ADJACENT NEIGHBORS LAND ACQUISITION PROGRAM
CHAPTER 2-160 RESERVED*
CHAPTER 2-164 PRIVATIZATION - TRANSPARENCY, ACCOUNTABILITY AND PERFORMANCE*
CHAPTER 2-165 DEBT TRANSACTIONS - TRANSPARENCY, ACCOUNTABILITY AND PERFORMANCE
CHAPTER 2-168 CHICAGO FAIR LABOR PRACTICES
CHAPTER 2-172 RESERVED*
CHAPTER 2-173 WELCOMING CITY ORDINANCE
CHAPTER 2-176 MUNICIPAL IDENTIFICATION CARD
CHAPTER 2-178 PROHIBITION ON PARTICIPATION IN REGISTRY PROGRAMS
TITLE 3 REVENUE AND FINANCE
TITLE 4 BUSINESSES, OCCUPATIONS AND CONSUMER PROTECTION
TITLE 5 HOUSING AND ECONOMIC DEVELOPMENT
TITLE 6 HUMAN RIGHTS*
TITLE 7 HEALTH AND SAFETY
TITLE 8 OFFENSES AFFECTING PUBLIC PEACE, MORALS AND WELFARE
TITLE 9 VEHICLES, TRAFFIC AND RAIL TRANSPORTATION
TITLE 10 STREETS, PUBLIC WAYS, PARKS, AIRPORTS AND HARBORS
TITLE 11 UTILITIES AND ENVIRONMENTAL PROTECTION
TITLE 12 RESERVED
TITLE 13 BUILDINGS AND CONSTRUCTION
TITLE 14 RESERVED*
TITLE 14A ADMINISTRATIVE PROVISIONS OF THE CHICAGO CONSTRUCTION CODES*
TITLE 14B BUILDING CODE*
TITLE 14C CONVEYANCE DEVICE CODE*
TITLE 14E ELECTRICAL CODE*
TITLE 14F FIRE PREVENTION CODE*
TITLE 14G FUEL GAS CODE*
TITLE 14M MECHANICAL CODE*
TITLE 14N 2022 ENERGY TRANSFORMATION CODE*
TITLE 14P PLUMBING CODE*
TITLE 14R BUILDING REHABILITATION CODE*
TITLE 14X MINIMUM REQUIREMENTS FOR EXISTING BUILDINGS*
TITLE 15 FIRE PREVENTION
TITLE 16 LAND USE
TITLE 17 CHICAGO ZONING ORDINANCE
TITLE 18 BUILDING INFRASTRUCTURE
APPENDIX TO THE MUNICIPAL CODE OF CHICAGO (RESERVED)*
TABLES
Chicago Zoning Ordinance and Land Use Ordinance
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2-44-080 2015 affordable requirements.
   This section shall apply to any residential housing project, or portion thereof, for which (i) the City Council has passed an ordinance approving a rezoning, City land sale, or financial assistance, as described in subsection (C), prior to October 1, 2021, and (ii) a building permit has been applied for prior to October 1, 2025, or in the case of planned developments before the sunset or other date specified in the planned development, unless such residential housing project is subject to the affordable housing requirements of former Section 2-44-070 as in effect prior to October 1, 2021.
   (A)   Title and purpose. This section shall be known and may be cited as the "2015 Affordable Requirements Ordinance" or "2015 ARO," and shall be liberally construed and applied to achieve its purpose, which is to expand access to housing for low-income and moderate-income households and to preserve the long-term affordability of such housing.
   (B)   Definitions. For purposes of this section, the following definitions shall apply:
   "Affordable" means a sales price or rent less than or-equal to the amount at which total monthly housing costs, as specified in the rules, would total not more than 30% of household income for a household whose income is the maximum allowable for an eligible household.
   "Affordable housing" means: (1) with respect to rental housing, housing that is affordable to households earning up to sixty percent (60%) of the area median income, and (2) with respect to owner-occupied housing, housing that is affordable to households earning up to one hundred percent (100%) of the area median income. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, "affordable housing" for that project means:
      (i)   with respect to rental housing, one-half of the housing units required to be affordable are affordable to households earning up to sixty percent (60%) of the area median income, and one-half of the housing units required to be affordable are affordable to households earning up to fifty percent (50%) of the area median income; and
      (ii)   with respect to owner-occupied housing, one-half of the housing units required to be affordable are affordable to households earning up to one hundred (100%) of the area median income, and one-half of the housing units required to be affordable are affordable to households earning up to eighty percent (80%) of the area median income.
   "Affordable housing agreement" means a covenant, lien, regulatory agreement, promissory note, mortgage, deed restriction, right of first refusal, option to purchase or similar instrument, governing how the developer and subsequent owners or occupants of affordable units shall comply with this section.
   "Affordable unit" means a housing unit required by this section to be affordable, whether located on-site or off-site and whether a rental unit or an owner-occupied unit.
   "Area median income" means the median household income for the Chicago Primary Metropolitan Statistical Area as calculated and adjusted for household size on an annual basis by HUD.
   "Authorized agency" means the Chicago Housing Authority, the Chicago Low-Income Housing Trust Fund, or another non-profit agency acceptable to the City, which administers subsidies under HUD’s McKinney-Vento Homeless Assistance Grants program, or the Veterans Administration Supportive Housing program, or another housing assistance program approved by the City.
   "Chicago Community Land Trust" means the Illinois not-for-profit corporation established by ordinance adopted on January 11, 2006, and published at pages 67997 through 68004 in the Journal of Proceedings of the City Council of such date, as amended, and having as its primary mission the preservation of long-term affordability of housing units, or any successor organization.
   "Commissioner" means the Commissioner of Housing, or his or her designee.
   "Common ownership or control" refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member, as that term is defined in Section 4-284-020, of an investor of the entity owns ten percent (10%) or more of the interest in the property.
   "Condominium" means a form of property established pursuant to the Illinois Condominium Property Act.
   "Contiguous parcels" means any parcel of land or lot that is: (1) touching another parcel or lot at any point, (2) separated from another parcel or lot at any point only by a public or private street, road, or other right-of-way, (3) separated from another parcel or lot at any point only by a public or private utility, service, or access easement, or (4) separated from another parcel or lot only by other real property under common ownership or control which is not subject to the requirements of this section at the time of application for the City approval that triggers the obligation to comply with this section.
   "Department" means the Department of Housing or any successor department, acting by or through its Commissioner.
   "Developer" means the owner, as that term is defined in Chapter 14A-2, of the residential housing project and, if different from the owner, any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which develops the residential housing project and, if applicable, provides off-site affordable units, together with their successors and assigns, but does not include a lender, any governmental entity or the general contractor working for any developer.
   "Development" or "develop" means, for purposes of determining whether the requirements of this section are triggered, the construction or substantial rehabilitation of housing units or the conversion of any building into residential condominiums.
   "Downtown districts" means the "D" zoning districts as now or hereafter designated in the Chicago Zoning Ordinance, Chapter 17-4 of the Municipal Code.
   "Eligibility criteria" means: (1) with respect to rental housing, at the time of the first rental by that household, a household earning up to sixty percent (60%) of the area median income, provided that, subject to the Commissioner's discretion, rental eligibility criteria may be set at a weighted average of sixty percent (60%) of the area median income across the totality of affordable dwelling units provided pursuant to this Section, with no individual unit's eligibility criteria set above eighty percent (80%) of area median income; or (2) with respect to owner-occupied housing, at the time of the purchase of the unit, a household earning up to one hundred twenty percent (120%) of the area median income. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, "eligibility criteria" for that project means:
      (i)   with respect to rental housing, at the time of the first rental by that household, a household earning up to sixty percent (60%) of the area median income for one-half of the affordable units, and a household earning up to fifty percent (50%) of the area median income for the other half; and
      (ii)   with respect to owner-occupied housing, at the time of purchase of the unit, a household earning up to one hundred (100%) of the area median income for one-half of the affordable units, and a household earning up to eighty percent (80%) of the area median income for the other half.
   "Eligible household" means a household whose combined annual income, adjusted for household size, does not exceed the maximum income specified in the eligibility criteria for the applicable affordable unit.
   "Financial assistance" means any assistance provided by the City through grants, direct or indirect loans, or allocation of tax credits for the development of residential housing units.
   "Higher income area" means any area that is not a low-moderate income area, provided that if any portion of a higher income area is located in a downtown district, that portion of the area will be treated as a downtown district for purposes of this section.
   "Housing unit" or "unit" means a room or suite of rooms designed, occupied or intended for occupancy as a separate living quarter with cooking, sleeping and sanitary facilities provided within the unit for the exclusive use of the occupants of the unit; provided that a "housing unit" does not include: (1) dormitories that are owned and operated by or on behalf of an educational institution, (2) hotels as that term is defined in Chapter 14B-2 of the Code, or (3) mobile homes.
   "HUD" means the United States Department of Housing and Urban Development or any successor department.
   "In lieu fee" means a fee in lieu of the establishment of on-site or, if applicable, off-site affordable units, adjusted annually, beginning on January 1 of the year following the second anniversary of the effective date of this section, based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Chicago metropolitan area, or some other comparable index selected by the Commissioner in his or her reasonable discretion if this index no longer exists.
   "Initial sale" means the first sale of an affordable unit by a developer to an eligible household or an authorized agency pursuant to subsection (Q).
   "Low-moderate income area" means an area designated by the Commissioner as a low-moderate income area pursuant to published data regarding Chicago or area median income or the cost of housing or other data relating to gentrification or loss of affordable housing, such as Chicago or area median home sale prices or census tract information. The criteria for designating low-moderate income areas will be set forth in the rules. The Department will publish a list of low-moderate income areas, and will update the list at least every five years. If any portion of a low-moderate income area is located in a downtown district, that portion of the area will be treated as a downtown district for purposes of this section.
   "Market-rate unit" means a housing unit in a residential housing project or, if applicable, off-site location that is not an affordable unit as defined in this section, and may sell or rent at any price.
   "Off-site" means on a site different from the site of the residential housing project.
   "On-site" means on the same site as the residential housing project.
   "Planned development" has the same meaning ascribed to that term in Section 17-17-02120.
   "Publication date" means the date this ordinance is published in the Journal of the Proceedings of the City Council of the City of Chicago.
   "Residential housing project" means one or more buildings that collectively contain ten or more new or additional housing units on one or more parcels or lots under common ownership or control, including contiguous parcels. A "residential housing project" may be developed in one or more phases and may consist of new construction, substantial rehabilitation, or the conversion of rental housing to condominiums. In determining whether a development constitutes a residential housing project, the Department will consider all relevant factors, including whether the development is marketed as a single or unified project, shares common elements, or is a phase of a larger development. The definition of "residential housing project" shall be interpreted broadly to achieve the purposes of this section and to prevent evasion of its terms.
   "Rezoning of property" means a change in the zoning of property in any of the following circumstances: (1) to permit a higher floor area ratio than would otherwise be permitted in the base district, including through transit-served location floor area premiums where the underlying base district does not change; (2) to permit a higher floor area ratio or to increase the overall number of housing units than would otherwise be permitted in an existing planned development, as specified in the Bulk Regulations and Data Table, even if the underlying base district for the planned development does not change; (3) from a zoning district that does not allow household living uses to a zoning district that allows household living uses; (4) from a zoning district that does not allow household living uses on the ground floor of a building to a zoning district that permits household living uses on the ground floor; or (5) from a downtown district to a planned development, even if the underlying base district for the property does not change.
   "Substantial rehabilitation" means the reconstruction, enlargement, installation, repair, alteration, improvement or renovation of a building, structure or portion thereof requiring a permit issued by the City, provided the cost of the substantial rehabilitation must be $75,000 or more per housing unit.
   "TIF Act" means the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq., as amended from time to time.
   "TIF Funds" means incremental ad valorem taxes which, pursuant to the TIF Act, have been collected and are allocated to pay redevelopment project costs and obligations incurred in the payment thereof.
   "Zoning Ordinance" means Title 17 of the Municipal Code.
   (C)   Applicability; Minimum percentage of affordable units. The requirements of this section apply in the following circumstances:
      (1)   Rezonings. Whenever the City approves the rezoning of property, and such property is subsequently developed with a residential housing project, the developer shall be required to establish no less than ten percent (10%) of the housing units in the residential housing project as affordable housing or satisfy the requirements of this section through one of the alternative methods in subsection (F); provided that if a developer also receives financial assistance, the developer instead shall comply with the requirements of subsection (G)(3). Developers shall not submit piecemeal applications for zoning approval to avoid compliance with this section. The provisions of this subsection (C)(1) shall not apply to any existing residential housing project located on property that was rezoned and thereby converted to a nonconforming use, if the City Council approves a change in zoning solely for the purpose of restoring the residential housing project to a conforming use.
      (2)   City land sales. Whenever the City sells real property to any developer and such property or any portion thereof is (a) subsequently developed with a residential housing project, or (b) incorporated into a residential housing project site in order to satisfy minimum off-street parking, minimum lot area, setback or other zoning or Municipal Code requirements or standards, the developer shall be required to establish no less than ten percent (10%) of the housing units in the residential housing project as affordable housing or satisfy the requirements of this section through one of the alternative methods in subsection (F); provided that if a developer also receives financial assistance, the developer instead shall comply with the requirements of subsection (C)(3).
      (3)   Financial assistance. Whenever the City provides financial assistance to any developer in connection with the development of a residential housing project, the developer shall be required to establish no less than twenty percent (20%) of the housing units in the residential housing project as affordable housing or satisfy the requirements of this section through one of the alternative methods in subsection (F).
   (D)   Application of 2015 ARO to existing buildings. In the case of existing buildings subject to the requirements of subsection (C), subsection (C) shall apply as follows:
      (1)   for an existing building that contains housing units at the time of the approval of a zoning change, only the additional housing units permitted by the rezoning are subject to the affordable housing requirement;
      (2)   for an existing building that contains a mixed-use occupancy with one use being residential at the time of the approval of the zoning change, only the additional housing units permitted by the rezoning are subject to the affordable housing requirement; or
      (3)   for an existing building with respect to which the developer has received financial assistance or has purchased City land, the entire building is subject to the affordable housing requirement.
   (E)   [Reserved.]
   (F)   Methods of compliance.
      (1)   Low-moderate income areas. In low-moderate income areas, a developer subject to the provisions of subsection (C) must provide at least 25% of the required affordable units on-site. The developer may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site affordable units; (b) payment of a fee in lieu of the establishment of on-site affordable units in the amount of $50,000 per unit; or (c) any combination thereof.
      (2)   Higher income areas. In higher income areas, a developer subject to the provisions of subsection (C) must provide at least 25% of the required affordable units on-site or off-site. The developer may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site or off-site affordable units; (b) payment of a fee in lieu of the establishment of affordable units; or (c) any combination thereof. The amount of the in lieu fee shall be $125,000; provided that, if the developer provides and then sells or leases at least 25% of the required affordable units in the residential housing project to an authorized agency pursuant to subsection (Q), the in lieu fee shall be reduced to $100,000 per unit. If the developer elects to provide affordable units off-site, the off-site affordable units must be located within a two mile radius from the residential housing project and in the same or a different higher income area or downtown district.
      (3)   Downtown districts – Rental units. In the downtown districts and in planned developments with an underlying downtown district zoning classification, a developer of rental units subject to the provisions of subsection (C) must provide at least 25% of the required affordable rental units on-site or off-site. The developer may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site or off-site affordable rental units; (b) payment of a fee in lieu of the establishment of affordable rental units; or (c) any combination thereof. The amount of the in lieu fee shall be $140,000 per unit through and including the first anniversary of the publication date, and $175,000 per unit thereafter; provided that, if the developer sells or leases at least 25% of the required affordable rental units in the residential housing project to an authorized agency pursuant to subsection (Q), the in lieu fee shall be reduced to $115,000 per unit through and including the first anniversary of the publication date, and $150,000 per unit thereafter. If the developer elects to provide affordable rental units off-site, the off-site affordable rental units must be located within a two-mile radius from the residential housing project and in a downtown district or higher income area.
      (4)   Downtown districts – Owner-occupied units. In the downtown districts and in planned developments with an underlying downtown district zoning classification, a developer of owner-occupied units subject to the provisions of subsection (C) may establish affordable housing by one or more of the following: (a) the establishment of affordable owner-occupied units as part of the residential housing project; (b) the establishment of off-site affordable owner-occupied units; (c) payment of a fee in lieu of the establishment of on-site or off-site affordable owner-occupied units; or (d) any combination thereof. The amount of the in lieu fee shall be $140,000 per unit through and including the first anniversary of the publication date, and $175,000 per unit thereafter; provided that, if the developer sells or leases at least 25% of the required affordable units in the residential housing project to an authorized agency pursuant to subsection (Q), the in lieu fee shall be reduced to $115,000 per unit through and including the first anniversary of the publication date, and $150,000 per unit thereafter; and provided further that, if the developer elects not to provide a minimum of 25% of the required affordable owner-occupied units either on-site or off-site, the in lieu fee shall be increased to $160,000 per unit through and including the first anniversary of the publication date, and $225,000 per unit thereafter. If the developer elects to provide affordable owner-occupied units off-site, the off-site affordable units may be located anywhere in the City, subject to the Department’s approval.
      (5)   Incentive for family-sized units. The Commissioner may reduce the required number of affordable units in exchange for units with more bedrooms, according to the following equivalency table. Developers who reduce the required number of affordable units pursuant to this incentive shall give preference in leasing or selling units of two bedrooms or more to multi-person households as specified in the rules.
 
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
Studio
1 studio
1.25 studio
2 studios
2.5 studios
One-Bedroom
1.25 one-bedroom units
1.5 one-bedroom units
2 one-bedroom units
Two-Bedroom
1.25 one-bedroom units
1.5 one-bedroom units
Three-Bedroom
1.25 one-bedroom units
 
   (G)   Affordable Housing Opportunity Fund. The in lieu fees and other fees collected under this section, former Section 2-44-070 as in effect prior to October 1, 2021, and former Section 17-4-1004 as in effect prior to October 12, 2015, shall be deposited in the Affordable Housing Opportunity Fund, unless required to be deposited into another fund pursuant to federal or state law.
      (1)   fifty percent (50%) shall be used: (i) as provided under Section 2-44-106(o), or (ii) for the construction, rehabilitation or preservation of affordable housing, or (iii) in connection with such other housing programs as shall be specifically approved by the City Council for such revenues; and
      (2)   fifty percent (50%) shall be contributed to the Chicago Low-Income Housing Trust Fund or a successor organization.
   (H)   Duration of affordability restrictions.
      (1)   In the case of owner-occupied housing, the affordability period is 30 years, provided that if the affordable unit is sold within an existing 30-year term, such units shall be subject to a new affordability period of 30 years beginning on the date of such sale.
      (2)   In the case of rental housing, the affordability period is 30 years after the initial rental; provided that if the affordable unit is converted to a condominium unit within 30 years after its initial rental, such units shall be subject to the provisions of this section that apply to owner-occupied units and a new affordability period of 30 years shall begin on the date of the initial sale of such condominium unit.
      (3)   Notwithstanding subsection (H)(1), if the owner of the affordable unit occupies the affordable unit as his principal residence for a continuous period of 30 years, the City shall release the affordable housing agreement without further obligation on the owner’s part.
   (I)   Eligibility criteria. Except for the sale or lease of affordable units to an authorized agency pursuant to subsection (Q), all affordable units required under this section shall be leased or sold only to eligible households.
   (J)   Tax increment financing.
      (1)   With respect to the development of residential housing projects and planned developments assisted by the City with TIF Funds in redevelopment project areas established pursuant to the TIF Act, to the extent that the requirements of this section conflict with any TIF guidelines now or hereinafter in effect, the TIF guidelines shall prevail.
      (2)   To the extent that redevelopment plans approved pursuant to the TIF Act provide that developers who receive TIF Funds for market rate housing set aside twenty percent (20%) of the units to meet affordability criteria established by the Department (or any successor or predecessor City department), the requirements of this section shall be deemed to be such affordability criteria and shall supersede all others.
   (K)   Compliance required prior to issuance of building permit. Prior to the issuance of a building permit for any residential housing project subject to the affordable housing requirements of this section, including, without limitation, excavation or foundation permits, the developer shall do one or both of the following, as applicable:
      (1)   pay an amount equal to the required fee in lieu of establishing on-site or, if applicable, off-site affordable units pursuant to subsection (F); or
      (2)   execute and record an affordable housing agreement against the residential housing project or off-site location to secure the requirements of this section relating to the establishment of on-site or, if applicable, off-site affordable units.
   (L)   Affordable housing agreement. The affordable housing agreement required pursuant to subsection (K) shall be recorded against the residential housing project and, if applicable, the off-site affordable units, and shall run with the land and be binding on successors and assigns; provided, however, in the case of projects with owner-occupied units, the City shall periodically release the agreement from the market-rate units to permit the sale of such units in accordance with this section. Each affordable housing agreement shall:
      (1)   specify the number, type, location, size and phasing of construction of all affordable units and such other information as the Department requires to determine the developer’s compliance with this section; provided, however, that the Commissioner shall consult with the Commissioner of Planning and Development when the affordable requirement is triggered by a rezoning of property, as defined in Section 2-44-080(B) of the Municipal Code, a City land sale, or other financial assistance provided by the Department of Planning and Development;
      (2)   specify maximum qualifying incomes and maximum affordable rents or safes prices, and include resale and refinancing procedures and limitations;
      (3)   Include provisions for income certification of potential purchasers or renters of affordable units;
      (4)   limit the rental or sale of affordable units for the affordability period;
      (5)   for rental projects, require the developer to submit an annual report to the Department including the name, address, and income of each household occupying an affordable rental unit and identifying the monthly rent of each affordable rental unit;
      (6)   authorize a release of the affordability restrictions following foreclosure or other transfer in lieu of foreclosure if required as a condition to financing pursuant to procedures set forth in the rules;
      (7)   describe remedies for breach of the agreement; and
      (8)   include any other provisions required by the City to document the obligations imposed by this section.
   (M)   Chicago Community Land Trust. The Department may delegate to the Chicago Community Land Trust the administration of this section.
   (N)   Enforcement provisions.
      (1)   Failure by the developer to pay the required fee in lieu, or provide the on-site or off-site affordable units required by this section, or sell or rent such affordable units in accordance with the requirements of this section, shall be a violation of this section punishable by a fine in an amount equal to two times the payment of fees in lieu required in subsection (F) and, in the case of a residential real estate developer licensed pursuant to Chapter 4-40 of the Municipal Code or any successor chapter, the revocation of the developer’s residential real estate developer license.
      (2)   Upon the rental of any affordable unit at a rental price that is not affordable, or to a household that does not meet the eligibility criteria, the owner shall pay a fee of $500.00 per unit per day for each day that the owner is in noncompliance.
      (3)   In addition to any other available remedy, the City may seek an injunction or other equitable relief in court to stop any violation of this section and to recover any funds improperly obtained from any sale or rental of an affordable unit in violation of this section, plus costs and interest at the rate prescribed by law from the date a violation occurred.
      (4)   The City may seek such other remedies and use other enforcement bowers, as allowed by law. The remedies and enforcement powers established in this section are cumulative, and the City may exercise them in any order.
      (5)   Any fines or penalties imposed by the City for a violation of this section, and any fees collected under this section, shall be deposited into the Affordable Housing Opportunity Fund, unless required to be deposited into another fund pursuant to federal or state law, and shall be used and disbursed in accordance with subsection (G).
   (O)   Rules. The Commissioner is authorized to adopt such rules as the Commissioner may deem necessary for the proper implementation, administration and enforcement of this section.
   (P)   Hardship waiver. The Commissioner shall have discretion, in certain limited circumstances as specified in the rules, to waive, adjust or reduce the requirements of this section, including, without limitation, the income eligibility, resale price and other affordability covenants and restrictions, for developers or owners of affordable units who have used good faith efforts to comply with such requirements. The Commissioner shall exercise his discretion in the best interests of the City and with the goal of balancing long-term affordability and private investment. The rules shall set forth criteria for granting waivers, adjustments and reductions, such as establishing a minimum time period that developers and owners must market affordable units, establishing criteria related to unusual economic or personal circumstances, and providing a maximum percentage for the increase above the maximum income limit or resale price currently allowed.
   (Q)   Sale or rental to authorized agency. Affordable units required to be provided pursuant to this section may be sold or leased to an authorized agency, subject to the following provisions:
      (1)   The initial sale or lease of affordable units to the authorized agency is not subject to the price restrictions set forth in this section. Instead, the developer may sell or rent affordable units to the authorized agency at any price, similar to market-rate units.
      (2)   The authorized agency must sign a 30-year lease or, if the unit is purchased, record a 30-year deed restriction or similar instrument guaranteeing that all affordable units will be leased to households that meet the income eligibility requirements for rental housing under this section for a minimum of 30 years, and may not sell, transfer, or otherwise dispose of the affordable units.
      (3)   The authorized agency must submit a report on an annual basis to the Commissioner that provides the following information and any additional information requested by the Commissioner: number of affordable units currently in the authorized agency’s inventory and the monthly rental rate for each affordable unit, information concerning each tenant household’s composition and gross income, affordable unit operating expenses and revenues received by the authorized agency.
   (R)   Applying percentages – Fractional units. Calculations of the number of affordable units required by this section shall be based on the total number of housing units in the residential housing project, including any density bonus units. Where the application of the percentage requirements of this section results in a fractional housing unit, the developer shall round up to the nearest whole number for any portion of 0.5 or above and round down to the nearest whole number for any portion less than 0.5.
   (S)   Projects with both owner-occupied and rental units. When a residential housing project includes both owner-occupied and rental units, the provisions of this section that apply to owner-occupied projects shall apply to that portion of the project that consists of owner-occupied units, while the provisions of this section that apply to rental projects shall apply to that portion of the project that consists of rental units; provided, however, with the Commissioner’s approval, a developer may provide rental units where the developer would otherwise be required to provide owner-occupied units, in which event such units shall be subject to the provisions of this section that apply to rental projects.
   (T)   Supplemental incentives for on-site affordable units in transit-served locations. Residential housing projects in transit-served locations, as defined in Section 17-10-0102-B, that qualify for and are granted the floor area premiums set forth in Section 17-3-0403-B (for projects in B dash 3 and C dash 3 districts) or Section 17-4-0405-C (for projects in D dash 3 districts) or the building height increases set forth in Sec. 17-3-0408-B.1 (for projects in B dash 3 and C dash 3 districts), and that provide at least 50% of the required affordable units on-site, are eligible for supplemental incentives under Section 17-3-0403-C (additional FAR increase in B dash 3 and C dash 3 districts), Section 17-3-0408-B.2 (additional building height increase in B dash 3 and C dash 3 districts), and Section 17-4-0405-D (additional FAR increase in D dash 3 districts).
   (U)   Standards for affordable units. Affordable units required to be provided pursuant to this section shall comply with the following standards, as may be detailed further in the rules:
      (1)   Affordable units shall be reasonably dispersed throughout the residential housing project, such that no single building or floor therein has a disproportionate percentage of affordable units.
      (2)   Except as permitted in subsection (S), residential housing projects which contain owner-occupied units must comply with the provisions of this section that apply to owner-occupied projects, and residential housing projects which contain rental units must comply with the provisions of this section that apply to rental projects.
      (3)   Affordable units shall be comparable to the market rate units in the residential housing project (or off-site location in the case of off-site affordable units) in terms of unit type, number of bedrooms per unit, quality of exterior appearance, energy efficiency, and overall quality of construction; provided, however, with the Commissioner’s approval, in a residential housing project (or off-site location in the case of off-site affordable units) which contains single-family detached homes, affordable units may be attached homes rather than detached homes and lots for affordable units may be smaller than lots for market-rate units (consistent with applicable zoning), and in a residential housing project (or off-site location in the case of off-site affordable units) which contains attached multi-story housing units, affordable units may contain only one story.
      (4)   Affordable units may have different interior finishes and features than market-rate units in the residential housing project (or off-site location in the case of off-site affordable units), as long as they are durable, of good and new quality, and are consistent with then-current standards for new housing.
      (5)   Affordable units shall have access to all on-site amenities available to market rate units, including the same access to and enjoyment of common areas and facilities in the residential housing project (or off-site location in the case of off-site affordable units).
      (6)   Affordable units shall have functionally equivalent parking when parking is provided to the market rate units in the residential housing project (or off-site location in the case of off-site affordable units).
      (7)   Affordable units shall be constructed, completed, ready for occupancy, and marketed concurrently with or prior to the market rate units in the residential housing project or phase thereof. As used in this section, "concurrently" means that a proportionate share of affordable, units shall be completed for each group of market rate units completed at 25%, 50%, 75% and final completion of the residential housing project. The Commissioner may approve an alternative timing plan if the Commissioner determines, in his or her sole discretion, that there is no economically feasible way to comply with the phasing requirements, in which event the developer shall post a bond or similar security in an amount equal to one and one-half times the required in lieu fee to secure the completion of such units; provided, however, that the Commissioner shall consult with the Commissioner of Planning and Development when the affordable requirement is triggered by a rezoning of property, as defined in Section 2-44-080(B) of the Municipal Code, a City land sale, or other financial assistance provided by the Department of Planning and Development.
      (8)   The marketing requirements and procedures for affordable units shall be contained in the rules.
      (9)   The rules may specify minimum household sizes for affordable units of different bedroom sizes, and may require that prospective purchasers complete home buyer education training or fulfill other requirements.
   (V)   Additional standards for off-site affordable units. With the Commissioner’s approval, a developer of a residential housing project in a downtown district or higher income area may satisfy all or part of its affordable housing obligation through the establishment of off-site affordable units, subject to the following standards, as may be detailed further in the rules:
      (1)   The developer may either build new affordable units, or purchase and convert existing market-rate units to affordable units. In either case, the construction or acquisition and rehabilitation budget for the off-site affordable units must equal or exceed the in lieu fee that would otherwise be due pursuant to subsection (F).
      (2)   Off-site affordable units must meet all of the requirements set forth in this section for on-site affordable units, except that: (a) off-site locations are not subject to (U)(1); and (b) all off-site affordable units for a residential housing project must receive certificates of occupancy prior to issuance of the first certificate of occupancy for the market-rate units in the residential housing project.
      (3)   The off-site location shall be appropriately zoned to allow for the proposed project. No increase in density or financial assistance from the City shall be required in order to accommodate the off-site affordable units.
      (4)   Developers must pay a fee of $5,000 per unit to pay the expenses of the Department in connection with monitoring and administering compliance with the requirements of this subsection. Any fees collected under this subsection shall be deposited into the Affordable Housing Opportunity Fund and used and disbursed in accordance with subsection (G).
(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1; Amend Coun. J. 4-10-19, p. 100029, Art. II, § 8; Amend Coun. J. 12-16-20, p. 26066, § 2; Amend Coun. J. 3-24-21, p. 28625, § 1; Amend Coun. J. 4-21-21, p. 29627, § 2; Amend Coun. J. 4-19-23, p. 62501, § 1)
2-44-085 2021 affordable requirements.
   This section shall apply to any residential development covered under subsection (C), unless such residential development is subject to the affordable housing requirements in effect prior to the effective date of this section pursuant to the prefatory clause of Section 2-44-080.
   (A)   Title and purpose. This section shall be known and may be cited as the "2021 Affordable Requirements Ordinance" or "2021 ARO", and shall be liberally construed and applied to achieve its purpose, which is to expand access to housing for low-income and moderate-income households in all areas of the City and to preserve the long-term affordability of such housing.
   (B)   Definitions. For purposes of this section, the following definitions shall apply:
   "Affluent zone" means two or more contiguous census tracts in which the median household income is above 150 percent of the citywide median household income based upon published data or includes either (a) the Loop community area, or (b) the Hyde Park community area. The Department will publish a map showing the boundaries of the affluent zones, and will update the map at least every five years but no more often than every two years.
   "Affordable" means a sales price or monthly rent less than or equal to the amount at which total monthly housing costs, as specified in the rules, would total not more than 30 percent of household income for a household whose income is the maximum allowable for an eligible household.
   "Affordable housing" means rental or owner-occupied housing, as applicable, which is affordable to eligible households.
   "Affordable housing covenant and agreement" means a covenant, lien, regulatory agreement, promissory note, mortgage, deed restriction, right of first refusal, option to purchase or similar instrument recorded against an owner-occupied affordable unit, governing how the initial and subsequent owners of affordable owner-occupied units shall comply with this section.
   "Affordable unit" means a dwelling unit required by this section to be affordable, whether located on-site or off-site and whether a rental unit or an owner-occupied unit.
   "Area median income" or "AMI" means the median household income for the Chicago Primary Metropolitan Statistical Area as calculated and adjusted for household size on an annual basis by HUD.
   "Authorized agency" means the Chicago Housing Authority, the Chicago Low-Income Housing Trust Fund, or another non-profit agency acceptable to the City, which administers subsidies under HUD's McKinney-Vento Homeless Assistance Grants program, or the Veterans Administration Supportive Housing program, or another housing assistance program approved by the City.
   "Chicago Community Land Trust" means the Illinois not-for-profit corporation established by ordinance adopted on January 11, 2006 and published at pages 67997 through 68004 in the Journal of the Proceedings of the City Council of the City of Chicago of such date, as amended, and having as its primary mission the preservation of long-term affordability of dwelling units, or any successor organization.
   "Commissioner" means the Commissioner of Housing, or the Commissioner's designee.
   "Common ownership or control" refers to property owned or controlled by the same person, persons, or entity, or by separate entities in which any shareholder, partner, member, or family member, as that term is defined in Section 4-284-020, of an investor of the entity owns 10% or more of the interest in the property.
   "Community area" means one of the official community areas designated under Section 1-14-010.
   "Community preservation area" means any community area or portion thereof, as designated by the Commissioner, that:
      (a)   contains (i) one or more existing displacement census tracts or vulnerable displacement census tracts, (ii) is adjacent to an affluent zone, and (iii) in which not more than 30% of the existing rental housing stock is legally restricted affordable housing; or
      (b)   contains an existing displacement census tract that is contiguous with an existing displacement census tract in a community area that meets all criteria in (a) above; or
      (c)   contains two or more existing displacement census tracts and is adjacent to a community area that meets all criteria in (a) above; or
      (d)   contains three or more existing displacement census tracts.
   The Department will publish a list of community preservation areas and will update the list at least every five years but no more often than every two years.
   "Condominium" means a form of property established pursuant to the Illinois Condominium Property Act, as amended.
   "Contiguous parcel" means any parcel of land or lot that is: (a) touching another parcel or lot at any point, (b) separated from another parcel or lot at any point only by a public or private street, road, or other right-of-way, (c) separated from another parcel or lot at any point only by a public or private utility, service, or access easement, or (d) separated from another parcel or lot only by other real property under common ownership or control which is not subject to the requirements of this section at the time of application for the City approval that triggers the obligation to comply with this section or al the lime of application for a building permit.
   "Department" means the Department of Housing or any successor department, acting by or through its Commissioner.
   "Developer" means the owner, as that term is defined in Chapter 14A-2, of the residential development or the property on which the residential development is proposed and, if different from the owner, any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which develops the residential development and, if applicable, provides off-site affordable units, together with their successors and assigns, but does not include any governmental entity.
   "Development" or "develop" means, for purposes of determining whether the requirements of this section are triggered, the construction, addition, or substantial rehabilitation of dwelling units or the conversion of any building into residential condominiums.
   "Downtown districts" means the "D" zoning districts as now or hereafter designated in the Chicago Zoning Ordinance.
   "Dwelling unit" or "unit" has the same meaning as set forth in Section 17-17-0248, provided that a "dwelling unit" docs not include: (a) dormitories that are owned and operated by or on behalf of an educational institution, (b) hotels as that term is defined in Chapter 14B-2 of the Municipal Code, or (c) mobile homes.
   "Eligible household" means a household whose combined annual income, adjusted for household size, satisfies the applicable target income level requirements of subsection (F) for the applicable affordable unit.
   "Entitlement" means (a) a zoning map amendment to permit a higher floor area ratio or to increase the number of dwelling units than would otherwise be permitted in the existing zoning district; (b) an administrative adjustment under Section 17-13-1003-A or 17-13-1003-D or variation under Section 17-13-1101-R, to permit a higher floor area ratio or to increase the overall number of dwelling units than would otherwise be permitted in the base zoning district; (c) a floor area premium under Section 17-2-0304-C where the base zoning district does not change; (d) a transit-served location floor area premium or minimum lot area reduction where the base zoning district does not change; (e) an amendment to an existing planned development, or minor change approval, to permit a higher floor area ratio or to increase the number of dwelling units than would otherwise be permitted in the planned development, as specified in the Bulk Regulations and Data Table, even if the base zoning district for the planned development does not change; (f) a zoning map amendment from a zoning district that does not allow household living uses to a zoning district that allows household living uses; (g) a zoning map amendment from a zoning district that allows, only via special use, residential uses below the second floor to a zoning district which allows residential uses below the second floor by-right; or (h) a zoning map amendment from any zoning district to a planned development, even if the base zoning district for the property does not change. Developers shall not submit piecemeal applications for zoning approval to avoid compliance with this section.
   "Existing displacement census tract" means a census tract where displacement is existing, as determined by the Commissioner, based upon published census data demonstrating the following demographic and housing market changes over a maximum period of 10 years: (a) an increase of at least 10% in median rent or home values, (b) an increase of at least 10 percent in the proportion of adult residents with a bachelor's degree or higher, and (c) a loss of at least 100 low-income residents. The Department will publish a map of existing displacement census tracts, and will update the map at least every five years but no more often than every two years.
   "Financial assistance" means any financing provided by the City for a residential development, or any portion thereof, or any related infrastructure, including, but not limited to, grants, direct or indirect loans, bond financing, Low-Income Housing Tax Credits, Donation Tax Credits, Community Development Block Grant funds, HOME Investment Partnerships Program funds, Tax Increment Financing, and the Affordable Housing Opportunity Fund.
   "HUD" means the United States Department of Housing and Urban Development or any successor department.
   "In lieu fee" means a fee in lieu of the establishment of on-site or, if applicable, off-site affordable units, adjusted annually, based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Chicago metropolitan area, or some other comparable index selected by the Commissioner in the Commissioner's reasonable discretion if this index no longer exists.
   "Inclusionary housing agreement" means an agreement in conformance with subsection (N) of this section between the city and a developer, governing how the developer shall comply with this section.
   "Inclusionary housing area" means any community area designated as an inclusionary housing area by the Commissioner based upon published data demonstrating that: (a) less than 10% of the dwelling units in the community area are legally restricted affordable housing, and the average income in the community area exceeds the AMI; or (b) less than 35% of the dwelling units in the community area are either legally restricted affordable housing or naturally occurring affordable housing. The Department will publish a list of inclusionary housing areas, and will update the list at least every five years but no more often than every two years.
   "Initial sale" means the first sale of an affordable unit by a developer to an eligible household or an authorized agency pursuant to subsection (S).
   "Legally restricted affordable housing" means housing operated under subsidy programs of government agencies, including programs operated or subsidized by the Chicago Housing Authority and the Illinois Housing Development Authority.
   "Low-moderate income area" means any area that is not designated an inclusionary area or a community preservation area. The Department will publish a list of low-moderate income areas and will update the list at least every five years but no more often than every two years. If any portion of a low-moderate income area is located in a downtown district, that portion of the area will be treated as a downtown district for purposes of this section.
   "Market-rate unit" means a dwelling unit in a residential development or, if applicable, at an off-site location that is not an affordable unit as that term is defined in this section, and that may be sold or rented at any price.
   "Naturally occurring affordable housing" means unsubsidized housing with market rents that are affordable to households earning up to 60% of the AMI.
   "Off-site" means a site different from the site of the residential development.
   "On-site" means the same site as the residential development.
   "Physical needs assessment" means a report by a qualified housing professional identifying those items that are necessary repairs, replacements and improvements at the time of the assessment or that will likely require repairs, replacements or improvements within three years of the assessment, and the estimated cost of all such items. The rules shall set forth standards for qualified housing professionals.
   "Planned development" has the same meaning ascribed to that term in Section 17-17-02120.
   "Residential development" or "residential project" means the construction, addition, substantial rehabilitation, or conversion from rental to condominium ownership, of ten or more dwelling units in one or more buildings on cither a single lot or on contiguous parcels under common ownership or control. A "residential development" or "residential project" may be developed in one or more phases. In determining whether a development constitutes a residential development or residential project, the Department will consider all relevant factors, including whether the development is marketed as a single or unified project, shares common elements, or is a phase of a larger development. The definition of "residential development" and "residential project" shall be interpreted broadly to achieve the purposes of this section and to prevent evasion of its terms.
   "Substantial rehabilitation" means the rehabilitation, as that term is defined in Chapter 14R-2, of a building or portion thereof requiring a building permit issued by the City, provided the actual cost of the substantial rehabilitation equals or exceeds $75,000 per dwelling unit undergoing rehabilitation. The dollar value in this definition shall be adjusted annually, based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Chicago metropolitan area, or some other comparable index selected by the Commissioner in the Commissioner's reasonable discretion if this index no longer exists.
   "Target income level" means the average affordability of the affordable units in a residential development expressed as a percentage of the AMI.
   "TIF Act" means the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq., as amended from time to time.
   "TIF Funds" means incremental ad valorem taxes which, pursuant to the TIF Act, have been collected and are allocated to pay redevelopment project costs and obligations incurred in the payment thereof.
   "Transit-served location" has the meaning set forth in Section 17-10-0102-B.
   "Vulnerable displacement census tract" means a census tract that is vulnerable to displacement, as determined by the Commissioner based upon: (a) its location in a community area that is adjacent to a community area containing an existing displacement census tract or to an affluent zone, and (b) published data demonstrating that at least 33% of the population in the census tract is below 200% of the poverty level. The Department will publish a map of vulnerable displacement census tracts, and will update the map at least every five years but no more often than every two years.
   "Zoning Ordinance" means Title 17 of the Municipal Code.
   (C)   Applicability. The requirements of this section apply whenever the City:
      (1)   approves an entitlement for property, and such property is subsequently developed with a residential development; or
      (2)   sells real property to any developer and such property or any portion thereof is (a) subsequently developed with a residential development, or (b) incorporated into a residential development site in order to satisfy minimum off-street parking, minimum lot area, setback or other zoning or Municipal Code requirements or standards; or
      (3)   provides financial assistance to any developer in connection with the development of a residential development.
   (D)   Application of ARO to existing projects. In the case of an existing residential or mixed-use project subject to this section pursuant to subsection (C)(1), only the dwelling units permitted by the entitlement are subject to the affordable housing requirements of this section; provided, however, if any existing dwelling units are also being "developed" as that term is defined in this section, then those units shall also be subject to the requirements of this section. The Department is authorized to require that developers provide reasonable evidence showing the existing number of dwelling units and the cost of rehabilitation of existing units, if applicable. The intent of this provision is to exempt existing dwelling units from the application of this section when the developer preserves the status quo for such existing units.
   (E)   Exemptions. The requirements of this section do not apply to:
      (1)   residential developments that receive government subsidies with requirements and regulations pertaining to affordability that are stricter than this section requires, as determined by the Commissioner; or
      (2)   residential developments that are rezoned solely for the purpose of restoring the residential development to a conforming use.
   (F)   Required percentage of affordable units. The percentage of dwelling units required to be affordable depends on the type of project (rental or owner-occupied), the location of the project, and the target affordability level, as specified below. The developer may provide affordable units at multiple income levels, provided the weighted average of all income levels meets the target affordability level, and further provided that all income levels must be multiples of 10 percent of the AMI.
      (1)   Rental projects in low-moderate income areas. Developers of rental projects in low-moderate income areas shall provide 10% of the dwelling units in the project as affordable housing at a weighted average of 60% of the AMI, provided the maximum income level for any affordable unit in a rental project may not exceed 80% of the AMI.
      (2)   Rental projects in all other areas. Developers of rental projects in the downtown districts, inclusionary areas, and community preservation areas shall provide 20% of the dwelling units in the project as affordable housing at a weighted average of 60% of the AMI, provided the maximum income level for any affordable unit in a rental project may not exceed 80% of the AMI, and further provided that developers required to provide six or more on-site or off-site affordable units shall select one of the following options for compliance (all subject to the foregoing 80% AMI cap):
 
Downtown, Inclusionary Areas, and Community Preservation Areas
Option 1
20% at a weighted average of 60% of the AMI, provided that at least one-third of the affordable units must be affordable to households at or below 50% of the AMI, of which one-sixth must be affordable to households at or below 40% of the AMI
Option 1A

Authorized Agency Units
Developers choosing Option 1 may lease or sell affordable units to an authorized agency. Such units shall count as 60% AMI units for the purpose of calculating the weighted average of the AMI.

If a developer sells or leases more than one-half of a project's affordable units to the Chicago Low Income Housing Trust Fund or another authorized agency that provides rent subsidies to landlords, the required percentage of affordable units under Option 1 increases to 25%.
Option 2
16% at a weighted average of 50% of the AMI, provided at least one-third of the affordable units must be affordable to households at or below 40% of the AMI
Option 3
13% at a weighted average of 40% of the AMI
Option 4
10% at a weighted average of 30% of the AMI
 
      (3)   Owner-occupied projects. Developers of owner-occupied projects shall provide the following minimum percentages of affordable units at the following target affordability levels, provided the maximum income level for any affordable unit in an owner-occupied project may not exceed 120% of the AMI:
 
Downtown, Inclusionary Areas, and Community Preservation Areas
Option 1
20% at a weighted average of 100% of the AMI
Option 2
16% at a weighted average of 80% of the AMI
Low-Moderate Income Areas
Option 1
10% at a weighted average of 100% of the AMI
Option 2
8% at a weighted average of 80% of the AMI
 
   (G)   Methods of compliance.
      (1)   Rental projects. A developer of a rental project subject to the provisions of subsection (C) must provide at least 25% of the required affordable units on-site, another 25% either on-site or off-site, and may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site or off-site affordable units; (b) payment of a fee in lieu of the establishment of on-site or off-site affordable units in the amounts specified below; or (c) any combination thereof.
      (2)   Owner-occupied projects. A developer of an owner-occupied project subject to the provisions of subsection (C) must provide at least 50% of the required affordable units either on-site or off-site, and may satisfy the balance of its affordable housing obligation through: (a) the establishment of additional on-site or off-site affordable units; (b) payment of a fee in lieu of the establishment of on-site or off-site affordable units in the amounts specified below; or (c) any combination thereof, provided that a developer of an owner-occupied project in a downtown district may satisfy its entire affordable housing obligation through the payment of an in lieu fee. If developer of an owner-occupied project in any area, including a downtown district, elects not to provide at least 25% of the required affordable units on-site, the in lieu fee amount per unit shall increase by 25%.
Location
Option
Amount of In Lieu Fee per Unit
Location
Option
Amount of In Lieu Fee per Unit
Downtown
Option 1 (20% set-aside)
$187,939
Option 2 (16% set-aside)
$234,924
Option 3 (13% set-aside) (Rental only)
$289,137
Option 4 (10% set-aside) (Rental only)
$375,878
Inclusionary Areas and Community Preservation Areas
Option 1 (20% set-aside)
$134,242
Option 2 (16% set-aside)
$157,803
Option 3 (13% set-aside) (Rental only)
$206,526
Option 4 (10% set-aside) (Rental only)
$268,484
Low-Moderate Income Areas
Option 1 (10% set-aside)
$53,697
Option 2 (8% set-aside)
$67,121
 
   (H)   Requirements for the location of off-site units. If the developer elects to provide affordable units off-site, the following regulations apply:
      (1)   Except as provided in subsection (H)(2) below, each off-site affordable unit must be located in a downtown district, inclusionary area, or community preservation area.
      (2)   If the triggering residential development is located in a community preservation area, each off-site unit must be located within a one-mile radius from the triggering project.
      (3)   In addition to the location requirements set forth in subsections (H)(1) and (2) above, if the triggering project is located in a transit-served location, each off-site unit must also be located in a substantially comparable transit-served location.
      (4)   Each off-site unit must have at least two bedrooms. Where applicable, developments may apply the incentives under subsection (V) in order to meet this requirement.
      (5)   The Commissioner shall have the authority to promulgate rules governing off-site units in order to promote the equitable distribution of off-site units across inclusionary areas and community preservation areas.
   (I)   Affordable Housing Opportunity Fund. The in lieu fees and other fees collected under this section and Section 2-44-080 shall be deposited in the Affordable Housing Opportunity Fund, unless required to be deposited into another fund pursuant to federal or state law. All annual revenues of the Affordable Housing Opportunity Fund shall be reserved and utilized exclusively to pay the administrative and monitoring costs and expenses of this section, Section 2-44-080, former Section 2-44-070 as in effect prior to October 1, 2021, and former Section 17-4-1004 as in effect prior to October 12, 2015, and, after subtracting such costs and expenses, as follows:
      (1)   fifty percent (50%) shall be used: (a) as provided under Section 2-44-106(o), or (b) for the construction, rehabilitation or preservation of affordable housing, or (c) in connection with such other housing programs as shall be specifically approved by the City Council for such revenues; and
      (2)   fifty percent (50%) shall be contributed to the Chicago Low-Income Housing Trust Fund or a successor organization.
   (J)   Duration of affordability restrictions.
      (1)   In the case of owner-occupied housing, the affordability period is 30 years after the initial sale, provided that if ownership of the affordable unit is transferred within an existing 30-year term, such units shall be subject to a new affordability period of 30 years beginning on the date of such transfer. The purchasers of affordable owner-occupied units shall record an affordable housing covenant and agreement against the affordable unit, as provided in subsection (O).
      (2)   In the case of rental housing, the affordability period is 30 years after the initial rental; provided that if an affordable unit is converted to a condominium unit within 30 years after its initial rental, such units shall be subject to the provisions of this section that apply to owner-occupied units and a new affordability period of 30 years shall begin on the date of the initial sale of such condominium unit.
      (3)   Notwithstanding subsection (J)(1), if the owner of an affordable unit or qualified heir (as that term is defined in the rules) occupies the affordable unit as the owner's or qualified heir's principal residence for a continuous period of 30 years, the City or its designee shall release the affordable housing covenant and agreement without further obligation on the owner's or qualified heir's part.
   (K)   Eligibility. Except for the sale or lease of affordable units to an authorized agency pursuant to subsection (S), all affordable units required under this section shall be leased or sold only to eligible households.
   (L)   Tax increment financing.
      (1)   With respect to the development of residential developments assisted by the City with TIF Funds, to the extent that the requirements of this section conflict with any TIF guidelines now or hereinafter in effect, the TIF guidelines shall prevail.
      (2)   To the extent that redevelopment plans approved pursuant to the TIF Act provide that developers who receive TIF Funds for market rate housing set aside more than 20 percent of the units to meet affordability criteria established by the Department (or any successor or predecessor City department), those requirements shall prevail.
   (M)   Compliance required prior to issuance of building permit. Prior to the issuance of a building permit for any residential development subject to the requirements of this section, including, without limitation, foundation permits, interior demolition permits, and other phased construction permits, but excluding demolition permits issued pursuant to Section 14A-4-407, the developer shall do one or both of the following, as applicable:
      (1)   pay an amount equal to the required fee in lieu of establishing on-site or, if applicable, off-site affordable units pursuant to subsection (G); or
      (2)   execute and record an inclusionary housing agreement against the residential development or off-site location to secure the requirements of this section relating to the establishment of on-site or, if applicable, off-site affordable units.
   The developer must apply for building permits using the same address that was included in the zoning application for the residential development, unless the Department approves a different address in writing.
   (N)   Inclusionary housing agreement. The inclusionary housing agreement required pursuant to subsection (M)(2) shall be recorded against the residential development and, if applicable, the off-site affordable units, and shall run with the land and be binding on successors and assigns; provided, however, in the case of projects with owner-occupied units, the City shall periodically release the inclusionary housing agreement from, the market-rate units to permit the sale of such units in accordance with this section. Each inclusionary housing agreement shall:
      (1)   specify the number, type, location, size and phasing of construction of all affordable units and such other information as the Department requires to determine the developer's compliance with this section;
      (2)   specify maximum qualifying incomes and maximum affordable rents or sale prices;
      (3)   include provisions for income certification of potential purchasers or renters of affordable units;
      (4)   limit the rental or sale of affordable units for the affordability period;
      (5)   for owner-occupied projects, require the developer to sell affordable units to eligible households subject to an affordable housing covenant and agreement, as provided in subsection (O);
      (6)   for rental projects, require the developer to submit an annual report to the Department including the name, address, income and demographics of each household occupying an affordable rental unit, identifying the monthly rent of each affordable rental unit, and providing such additional information as the Commissioner may request;
      (7)   authorize a release of the affordability restrictions following foreclosure or other transfer in lieu of foreclosure if required as a condition to financing pursuant to procedures set forth in the rules;
      (8)   describe remedies for breach of the agreement; and
      (9)   include any other provisions required by the City to document and secure the obligations imposed by this section.
   (O)   Chicago Community Land Trust; homebuyer execution and recording of affordable housing covenant and agreement. The Department may delegate to the Chicago Community Land Trust the administration and monitoring of owner-occupied affordable units created under this section. Concurrently with the initial sale of an affordable owner-occupied unit to an eligible household, the eligible household shall execute and record an affordable housing covenant and agreement against the unit. Each affordable housing covenant and agreement shall:
      (1)   require owners to occupy the units as their primary residence;
      (2)   prohibit owners from renting the units, unless the Commissioner finds sufficient cause to allow temporary rental of the unit under applicable rules, which may include maximum rental levels;
      (3)   specify resale and refinancing procedures and limitations, including a formula for limiting equity appreciation to a percentage of the increase in the unit's value, as determined by the difference between a fair market appraisal at the time of purchase of the unit and a fair market appraisal at the time of resale, with such adjustments as the Commissioner may approve; and
      (4)   grant an option to purchase the unit to the City or the CCLT at the maximum price that could be charged to an eligible household whenever the unit is offered for resale.
   (P)   Enforcement provisions.
      (1)   Failure to comply with any provision of this section, including without limitation, failure to pay the required fee in lieu, or provide the on-site or off-site affordable units required by this section, or sell or rent such affordable units in accordance with the requirements of this section, or record the inclusionary housing agreement against the applicable property, or apply for a building permit using the same address that was included in the zoning application (unless the Commissioner approves a different address in writing), shall be a violation of this section punishable by a fine in an amount up to two times the payment of fees in lieu required in subsection (G) and, in the case of a residential real estate developer licensed pursuant to Section 4-6-050 of the Municipal Code or any successor section, the revocation of the developer's residential real estate developer license.
      (2)   Upon the rental of any affordable unit at a rental price that is not affordable, or to a household that does not meet the eligibility criteria, the owner shall pay a fee of $500.00 per unit per day for each day that the owner is in noncompliance.
      (3)   In addition to any other available remedy, the City may seek an injunction or other equitable relief in court to stop any violation of this section and to recover any funds improperly obtained from any sale or rental of an affordable unit in violation of this section, plus costs and interest at the rate prescribed by law from the date a violation occurred.
      (4)   The City may seek such other remedies and use other enforcement powers, as allowed by law. The remedies and enforcement powers established in this section are cumulative, and the City may exercise them in any order.
      (5)   Any fines or penalties imposed by the City for a violation of this section, and any fees collected under this section, shall be deposited into the Affordable Housing Opportunity Fund, unless required to be deposited into another fund pursuant to federal or state law, and shall be used and disbursed in accordance with subsection (I).
   (Q)   Rules. The Commissioner is authorized to adopt such rules as the Commissioner may deem necessary for the proper implementation, administration and enforcement of this section.
   (R)   Hardship waiver. The Commissioner shall have discretion, in certain limited circumstances as specified in the rules, to waive, adjust or reduce the requirements of this section, including, without limitation, the income eligibility, resale price and other affordability covenants and restrictions, for developers or owners of affordable units who have used good faith efforts to comply with such requirements and who have submitted a feasibility study acceptable to the Commissioner to support their hardship claim. The Commissioner shall exercise the Commissioner's discretion in the best interests of the City and with the goal of balancing long-term affordability and private investment. Community opposition may not be a factor considered for a hardship waiver. The rules shall set forth criteria for granting waivers, adjustments and reductions, such as establishing a minimum time period that developers and owners must market affordable units, establishing criteria related to unusual economic or personal circumstances, and providing a maximum percentage for the increase above the maximum income limit or resale price currently allowed.
   (S)   Sale or rental to authorized agency. If a developer of a rental project elects to comply with Option 1A under subsection (F)(2), the following requirements shall apply:
      (1)   The rental subsidy provided by the authorized agency to the landlord combined with the rent paid by the eligible household may not exceed an amount affordable to households at 100 percent of the AMI, unless otherwise required by federal or state law.
      (2)   The authorized agency must sign a 30-year lease, Housing Assistance Payments (HAP) contract or similar instrument, or if the unit is purchased, record a 30-year deed restriction or similar instrument guaranteeing that all affordable units will be leased to households that meet the income eligibility requirements for rental housing under this section for a minimum period of 30 years, and prohibiting the authorized agency from selling, transferring, or otherwise disposing of the affordable units during this 30-year affordability period.
      (3)   The authorized agency must submit a report on an annual basis to the Commissioner that provides the following information and any additional information requested by the Commissioner: number of affordable units currently in the authorized agency's inventory and the monthly rental rate for each affordable unit, information concerning each tenant household's composition, demographics, and gross income, affordable unit operating expenses and revenues received by the authorized agency.
   (T)   Applying percentages – Fractional units. Calculations of the number of affordable units required by this section shall be based on the total number of dwelling units in the residential development, including any density bonus units. Where the calculation of affordable housing requirements described in this section results in a fractional dwelling unit equal to 0.5 or greater, the developer shall provide an additional unit to satisfy the fractional obligation. Where such calculation results in a fractional unit that is less than 0.5, the developer shall cither pay an in lieu fee or provide an additional unit to satisfy the fractional obligation. The in lieu fee for any fractional unit will be calculated as follows: [fractional unit] × [applicable in lieu fee].
   (U)   Projects with both owner-occupied and rental units.
      (1)   When a residential development includes both owner-occupied and rental units, the provisions of this section that apply to owner-occupied projects shall apply to that portion of the project that consists of owner-occupied units, while the provisions of this section that apply to rental projects shall apply to that portion of the project that consists of rental units, except as permitted under subsection (U)(2) below.
      (2)   With the Commissioner's approval, developers may substitute rental units for owner-occupied units where the developer would otherwise be required to provide owner-occupied units, and vice-versa.
   (V)   Incentive for family-sized units. The Commissioner may reduce the required number of affordable units in exchange for units with more bedrooms, according to the following equivalency table. Developers who reduce the required number of affordable units pursuant to this incentive shall give preference in leasing or selling units of two bedrooms or more to multi-person households as specified in the rules.
 
 
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
Studio
1 studio
1.25 studios
2 studios
2.5 studios
One-bedroom
1.25 one-bedroom units
1.5 one-bedroom units
2 one-bedroom units
Two-bedroom
1.25 two-bedroom units
1.5 two-bedroom units
Three-bedroom
1.25 three-bedroom units
 
   (W)   Standards for affordable units. Affordable units required to be provided pursuant to this section shall comply with the following standards, as may be detailed further in the rules:
      (1)   Affordable units shall be reasonably dispersed throughout the residential development, such that no single building or floor therein has a disproportionate percentage of affordable units.
      (2)   Except as permitted in subsection (U), residential developments which contain owner-occupied units must comply with the provisions of this section that apply to owner-occupied projects, and residential developments which contain rental units must comply with the provisions of this section that apply to rental projects.
      (3)   Affordable units shall be comparable to the market rate units in the residential development (or off-site location in the case of off-site affordable units) in terms of unit type, number of bedrooms per unit (except as provided in subsection (X)(2)), quality of exterior appearance, energy efficiency, and overall quality of construction; provided, however, with the Commissioner's approval, in a residential development (or off-site location in the case of off-site affordable units) which contains single-family detached homes, affordable units may be attached homes rather than detached homes and lots for affordable units may be smaller than lots for market-rate units (consistent with applicable zoning), and in a residential development (or off-site location in the case of off-site affordable units) which contains attached multi-story dwelling units, affordable units may contain only one story. Affordable units may also be smaller in aggregate size than the market-rate units, as specified in the rules.
      (4)   Affordable units may have different interior finishes and features than market-rate units in the residential development (or off-site location in the case of off-site affordable units), as long as they are durable, of good and new quality, and are consistent with then-current standards for new housing.
      (5)   Affordable units shall have access to all on-site amenities available to market rate units, including the same access to and enjoyment of common areas and facilities in the residential development (or off-site location in the case of off-site affordable units).
      (6)   Affordable units shall have functionally equivalent parking when parking is provided to the market rate units in the residential development (or off-site location in the case of off-site affordable units).
      (7)   Affordable units shall be constructed, completed, ready for occupancy, and marketed concurrently with or prior to the market rate units in the residential development or phase thereof. As used in this section, "concurrently" means that a proportionate share of affordable units shall be completed for each group of market rate units completed at 25%, 50%, 75% and final completion of the residential development. The Commissioner may approve an alternative timing plan if the Commissioner determines, in the Commissioner's sole discretion, that there is no economically feasible way to comply with the phasing requirements, in which event the developer shall post a bond or similar security in an amount equal to one and one-half times the required in lieu fee to secure the completion of such units.
      (8)   The marketing requirements and procedures for affordable units shall be specified in the rules.
      (9)   The rules may specify minimum household sizes for affordable units of different bedroom sizes, and may require that prospective purchasers complete home buyer education training or fulfill other requirements.
      (10)   All on-site affordable units must be accessible dwelling units, as that term is defined in Section 17-17-0202. The developer shall give preference in leasing or selling such units to people with disabilities as specified in the rules.
   (X)   Additional standards for off-site affordable units. With the Commissioner's approval and in accordance with subsections (G) and (M), a developer of a residential development may satisfy part of its affordable housing obligation through the establishment of off-site affordable units, subject to the following standards, as may be detailed further in the rules:
      (1)   The developer may either build new affordable units, or purchase and convert existing market-rate units to affordable units. In either case, the construction or acquisition and rehabilitation budget for the off-site affordable units must equal or exceed the in lieu fee that would otherwise be due pursuant to subsection (F). In the case of rehabilitation projects, the developer must submit a physical needs assessments for the off-site units to the Department to ensure the budget is sufficient to rehabilitate the units.
      (2)   Off-site affordable units must meet all of the requirements set forth in this section for on-site affordable units, except that: (a) off-site locations are not subject to subsection (W)(1) or (W)(10); (b) each off-site unit must contain at least two bedrooms; and (c) all off-site affordable units for a residential development must receive certificates of occupancy prior to issuance of the first certificate of occupancy for the market-rate units in the residential development, unless the Commissioner, in the Commissioner's sole discretion, permits the developer to contribute funds to an affordable housing project in an approved off-site location to fill a gap in financing, in which event the developer may deposit the off-site funds in escrow, subject to an escrow agreement with the affordable housing project developer in form and substance acceptable to the City. The off-site funds must equal or exceed the in lieu fee that would otherwise be due pursuant to subsection (F). Upon depositing the off-site funds in escrow, the developer shall be deemed to have satisfied its off-site unit obligation.
      (3)   Developers must pay a fee of $5,000 per unit to pay the expenses of the Department in connection with monitoring and administering compliance with the requirements of this subsection. Any fees collected under this subsection shall be deposited into the Affordable Housing Opportunity Fund and used and disbursed in accordance with subsection (I).
   (Y)   Supplemental incentives for on-site affordable units in transit-served locations. Residential developments in transit-served locations, as defined in Section 17-10-0102-B, that qualify for and are granted the floor area premiums set forth in Section 17-3-0403-B (for projects in B dash 3 and C dash 3 districts) or Section 17-4-0405-C (for projects in D dash 3 districts) or the building height increases set forth in Section 17-3-0408-B.1 (for projects in B dash 3 and C dash 3 districts), and that provide at least 50 percent of the required affordable units on-site, are eligible for supplemental incentives under Section 17-3-0403-C (additional FAR increase in B dash 3 and C dash 3 districts), Section 17-3-0408-B.2 (additional building height increase in B dash 3 and C dash 3 districts), and Section 17-4-0405-D (additional FAR increase in D dash 3 districts).
   (Z)   Commissioner's authority to enter into service agreements for marketing, income qualification and other services. In furtherance of administering this section, the Commissioner shall have the authority to enter into service agreements with outside providers selected by the Commissioner to market affordable housing created hereunder, assist developers of residential developments with income qualification of tenants and purchasers of affordable units created hereunder, conduct educational programs for potential residents of affordable units created hereunder regarding the purchase or lease of affordable housing, provide counseling and disseminate information regarding eligibility for affordable housing, and provide other services to ensure that the affordable units created hereunder are effectively marketed and provided to the target populations intended to benefit from such affordable units. Such service agreements may contain terms and conditions that the Commissioner deems appropriate, and the Commissioner shall have the authority to perform any and all acts as shall be necessary or advisable in connection with such service agreements and any renewals thereto, including the expenditure of Affordable Housing Opportunity Fund monies, or other duly appropriated funds, for such agreements.
   (AA)   Conflict. If the provisions of this section are inconsistent with one another, the more restrictive provision will control. The more restrictive provision is the one that imposes greater affordability on development as determined by the Commissioner.
(Added Coun. J. 4-21-21, p. 29627, § 3; Amend Coun. J. 12-14-22, p. 57209, § 1; Amend Coun. J. 5-22-24, p. 11837, § 1)
2-44-090 Near north/near west affordable housing pilot area.
   (A)   Title. This section shall be known and cited as the "Near North/Near West ARO Pilot Area Ordinance".
   (B)   Purpose. The purpose of this section is to establish modified affordable housing requirements for designated neighborhoods near the central business district that are experiencing gentrification or are at-risk of gentrification. The goals of these modified requirements are to mitigate the displacement impacts associated with gentrification, better protect the interests of the area’s economically vulnerable residents from demographic and housing market change, and preserve the economic diversity critical to a healthy economy.
   (C)   Relationship to 2015 ARO. The requirements in this section supplement or modify the affordable housing requirements in Section 2-44-080. In the event of a conflict between these requirements and the requirements in Section 2-44-080, the requirements in this section will control; provided, however, when a residential housing project receives financial assistance from TIF Funds, the requirements set forth in Section 2-44-080 will continue to apply and will control in the event of a conflict, except with respect to the location requirements set forth herein.
   (D)   Definitions. Except as provided below, defined terms shall have the meanings given in Section 2-44-080.
   "Accelerating" is a term used to describe a census tract that: (i) had low to moderate home values in 2015 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), but (ii) experienced a high appreciation rate between 2010 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Additional units" means the extra units required to be affordable under this section in excess of the units required to be affordable under Section 2-44-080.
   "Affordable unit" means a housing unit required by this section to be affordable, whether located on-site or off-site and whether a rental unit or an owner-occupied unit.
   "Adjacent" is a term used to describe a census tract that: (i) had low to moderate home values in 2015 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), (ii) experienced a low to moderate appreciation rate between 2010 and 2015 (i.e., appreciation rate in the bottom three quintiles of all census tracts in the City), but (iii) touches the boundary of at least one census tract that had high home values in 2015 (i.e., a median home value in the top two quintiles of all census tracts in the City) or a high appreciation rate between 2010 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Appreciated" is a term used to describe a census tract that: (i) had low to moderate home values in 2000 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), and (ii) high home values in 2015 (i.e., a median home value in the top two quintiles of all census tracts in the City), and (iii) experienced a high appreciation rate between 2000 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Demographic change" means a shift in the demographic conditions of an area in which at least three of the following four population changes have occurred from 2010 to 2015, relative to the citywide median: percentage of homeowners has increased; percentage of minorities (as defined in Section 2-92-670) has decreased; percentage of residents with a bachelor’s degree or higher has increased; and median household income has increased.
   "Early displacement" is a term used to classify census tracts that are showing early signs of gentrification. These census tracts: (i) have a vulnerable population at risk of displacement from rising housing costs, (ii) have undergone demographic change indicative of gentrification, and (iii) have adjacent, accelerated or appreciated market conditions, as determined by the Commissioner based upon published data regarding Chicago or area median income, the cost of housing, or other data indicative of gentrification or loss of affordable housing.
   "First units" means the units required to be affordable under Section 2-44-080.
   "Near North Zone" means a zone within the Near North/Near West Pilot Area that consists mainly of census tracts that are experiencing ongoing displacement.
   "Near West Zone" means a zone within the Near North/Near West Pilot Area that consists mainly of census tracts that are experiencing early displacement or are susceptible to displacement.
   "Ongoing displacement" is a term used to classify census tracts that are in the midst of gentrification. These census tracts: (i) no longer have a vulnerable population, (ii) have undergone demographic change indicative of gentrification, and (iii) have an appreciated market condition, as determined by the Commissioner based upon published data regarding Chicago or area median income, the cost of housing, or other data indicative of gentrification or loss of affordable housing.
   "Susceptible to displacement" is a term used to classify census tracts that are at-risk of gentrification. These census tracts: (i) have a vulnerable population at risk of displacement from rising housing costs, (ii) have not undergone demographic change indicative of gentrification, but (iii) have accelerating or adjacent market conditions, as determined by the Commissioner based upon published data regarding Chicago or area median income, the cost of housing or other data indicative of gentrification or loss of affordable housing.
   "Vulnerable population" means a population with at least three of the following four characteristics based on 2015 data: percentage of renters is higher than the citywide median; percentage of minorities (as defined in Section 2-92-670) is higher than the citywide median; percentage of residents without a bachelor’s degree is higher than the citywide median; and median household income is lower than the citywide median.
   (E)   Boundaries. The Near North/Near West Pilot Area is divided into two zones: the Near North Zone and the Near West Zone. A map of the Near North/Near West Pilot Area and its two zones is published in the Journal of the Proceedings of the City Council of the City of Chicago 2-28-18, page 66728, and on file in the Office of the City Clerk and made a part hereof. The boundary lines of the Near North/Near West Pilot Area follow streets, and such boundary lines are to be construed as the centerlines of said streets.
   (F)   Stage of displacement. The Near North Zone is characterized primarily by ongoing displacement. The Near West Zone is characterized primarily as either susceptible to displacement or by early displacement.
   (G)   Modified ARO requirements. The requirements of Section 2-44-080 shall apply in the Near North/Near West Pilot Area, except as modified below:
      (1)   No in lieu fee option. The option to pay a fee in lieu of the establishment of affordable units is eliminated in the Near North/Near West Pilot Area.
      (2)   Required percentage of affordable units. The percentage of units required to be affordable in a residential housing project, whether rental or for sale, is increased (i) from 10 percent to 20 percent in the Near North Zone, and (ii) from 10 percent to 15 percent in the Near West Zone, except that projects receiving City financial assistance must continue to provide 20 percent of the units in the residential housing project as affordable units in accordance with Section 2-44-080.
      (3)   Option to substitute owner-occupied units for rental units. In the Near North/Near West Pilot Area, developers may substitute owner-occupied units for rental units where the developer would otherwise be required to provide rental units.
      (4)   Specific standards for first units. The following standards apply to first units only:
         (i)   Substitution of rental units for owner-occupied units. In the Near North Zone, and in the case of first units only, developers may substitute rental units for owner-occupied units where the developer would otherwise be required to provide owner-occupied units.
         (ii)   Location requirements. In the Near West Zone, first units may be located on-site or off-site (subject to the Commissioner’s approval under subsection (V) of the 2015 ARO), but if located off-site must be provided within two miles of the residential housing project and either: (a) in a higher income area or downtown district, or (b) within the Near North/Near West Pilot Area, regardless of the income area in which the residential housing project is located. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, all affordable units must be provided on-site.
      (5)   Specific standards for additional units. The following standards apply to additional units only:
         (i)   Income eligibility for rental projects. Developers may lease additional units to households earning up to one hundred percent (100%) of the area median income at prices affordable to households at such income level, provided, however, the forgoing income eligibility and affordability limit may be decreased to eighty percent (80%) of the area median income if the Commissioner, in consultation with the Alderman of the ward in which the affordable units will be located, determines that there is a greater need for affordable housing at this income level in the subject location based on factors established by rule.
         (ii)   Location requirements. Additional units may be located on-site or off-site (subject to the Commissioner’s approval under Subsection (V) of the 2015 ARO), but if located off-site must be provided within the Near North/Near West Pilot Area. Such off-site units may be located anywhere in the Near North/Near West Pilot Area, regardless of distance from the residential housing project or income area in which the residential housing project is located. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, all affordable units must be provided on-site.
      (6)   Incentive for family-sized units. In the Near North/Near West Pilot Area, the commissioner, after consultation with the alderman of the ward in which the residential housing project is located, may reduce the required number of affordable units in exchange for units with more bedrooms, as follows:
         (i)   one 2-bedroom unit is equivalent to 1.25 studio units or 1.25 one-bedroom units:
         (ii)   one 3-bedroom unit is equivalent to 2 studio units or 1.5 one-bedroom units; and
         (iii)   one 4-bedroom unit is equivalent to 2.5 studio units or 2 one-bedroom units.
   (H)   Pending applications. This section shall apply to all residential housing projects subject to the affordable housing requirements of Section 2-44-080, unless: (1) an ordinance authorizing a City land sale or financial assistance, as described in Section 2-44-080(C), has been introduced to City Council prior to November 1, 2017; or (2) an ordinance authorizing a rezoning of property, as described in Section 2-44-080(C), has been introduced to City Council and (i) in the case of projects that are subject to planned development review, the Chicago Plan Commission has adopted a resolution recommending approval of the planned development prior to November 1, 2017, or (ii) in the case of any other rezoning of property, the Committee on Zoning, Landmarks and Building Standards has voted to approve the rezoning prior to November 1, 2017.
   (I)   Rules. The Commissioner is authorized to adopt such rules as the Commissioner may deem necessary for the proper implementation, administration and enforcement of this section. The Commissioner shall provide an annual report to the City Council Committee on Housing and Real Estate detailing the outcomes of the pilot program.
   (J)   Commissioner’s authority to enter into service agreements for marketing, income qualification and other services. In furtherance of administering this section, the Commissioner shall have the authority to enter into service agreements with outside providers selected by the Commissioner to market affordable housing created hereunder and pursuant to other City programs to residents of the Near North/Near West Pilot Area, assist developers of residential housing projects in the Near North/Near West Pilot Area with income qualification of tenants and purchasers of affordable units created hereunder, conduct educational programs for residents of the Near North/Near West Pilot Area regarding the purchase or lease of affordable housing, provide counseling and disseminate information regarding eligibility for affordable housing to residents of the Near North/Near West Pilot Area, and provide other services to ensure that the affordable units created hereunder are effectively marketed and provided to the target populations intended to benefit from such affordable units. Such service agreements may contain terms and conditions that the Commissioner deems appropriate, and the Commissioner shall have the authority to perform any and all acts as shall be necessary or advisable in connection with such service agreements and any renewals thereto, including the expenditure of Affordable Housing Opportunity Fund monies, or other duly appropriated funds, for such agreements.
   (K)   Limited continuing application. This section shall apply to any residential housing project in the Near North/Near West Pilot Area for which the City Council has passed an ordinance approving a rezoning, City land sale, or financial assistance, as described in Section 2-44-080(C), prior to October 1, 2021.
(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1; Amend Coun. J. 4-10-19, p. 98831, § 1*; Amend Coun. J. 11-20-19, p. 9510, Art. II, § 4 and Art. IV, § 3; Amend Coun. J. 12-16-20, p. 25252, § 1; Amend Coun. J. 4-21-21, p. 29627, § 4)
* Editor’s note – Coun. J. 4-10-19, p. 98831, § 1, purported to amend § 2-45-117, but that section was repealed and a substantially similar section was enacted as § 2-44-090 by Coun. J. 11-14-18, p. 90308, Art. I, § 1. This § 2-44-090 has been amended at the discretion of the editor to reflect the amendments to § 2-45-117 set forth in Coun. J. 4-10-19, p. 98831, § 1. Future legislation will correct the text if needed.
2-44-100 Milwaukee corridor affordable housing pilot area.
   (A)   Title. This section shall be known and cited as the "Milwaukee Corridor ARO Pilot Area Ordinance".
   (B)   Purpose. The purpose of this section is to establish modified affordable housing requirements for designated neighborhoods along the Milwaukee corridor adjacent to the CTA’s Blue Line that are experiencing gentrification. The goals of these modified requirements are to mitigate the displacement impacts associated with gentrification, better protect the interests of the area’s economically vulnerable residents from demographic and housing market change, and preserve the economic diversity critical to a healthy economy.
   (C)   Relationship to 2015 ARO. The requirements in this section supplement or modify the affordable housing requirements in Section 2-44-080. In the event of a conflict between these requirements and the requirements in Section 2-44-080, the requirements in this section will control; provided, however, when a residential housing project receives financial assistance from TIF Funds, the requirements set forth in Section 2-44-080 will continue to apply and will control in the event of a conflict, except with respect to the location requirements set forth herein.
   (D)   Definitions. Except as provided below, defined terms shall have the meanings given in Section 2-44-080.
   "Additional units" means the extra units required to be affordable under this section in excess of the units required to be affordable under Section 2-44-080.
   "Affordable unit" means a housing unit required by this section to be affordable, whether located on-site or off-site and whether a rental unit or an owner-occupied unit.
   "Appreciated" is a term used to describe a census tract that: (i) had low to moderate home values in 2000 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), and (ii) high home values in 2015 (i.e., a median home value in the top two quintiles of all census tracts in the City), and (iii) experienced a high appreciation rate between 2000 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Demographic change" means a shift in the demographic conditions of an area in which at least three of the following four population changes have occurred from 2010 to 2015, relative to the citywide median: percentage of homeowners has increased; percentage of minorities (as defined in Section 2-92-670) has decreased; percentage of residents with a bachelor’s degree or higher has increased; and median household income has increased.
   "Ongoing displacement" is a term used to classify census tracts that are in the midst of gentrification. These census tracts: (i) no longer have a vulnerable population, (ii) have undergone demographic change indicative of gentrification, and (iii) have an appreciated market condition, as determined by the Commissioner based upon published data regarding Chicago or area median income, the cost of housing, or other data indicative of gentrification or loss of affordable housing.
   "Vulnerable population" means a population with at least three of the following four characteristics based on 2015 data: percentage of renters is higher than the citywide median; percentage of minorities (as defined in Section 2-92-670) is higher than the citywide median; percentage of residents without a bachelor’s degree is higher than the citywide median; and median household income is lower than the citywide median.
   (E)   Boundaries. A map of the Milwaukee Corridor Pilot Area is published in the Journal of the Proceeding of the City Council of the City of Chicago, October 11, 2017, page 56919, and on file in the Office of the City Clerk and made a part hereof. The boundary lines of the Milwaukee Corridor Pilot Area follow streets, and such boundary lines are to be construed as the centerlines of said streets.
   (F)   Stage of displacement. The Milwaukee Corridor Pilot Area is characterized primarily by ongoing displacement.
   (G)   Modified ARO requirements. The requirements of Section 2-44-080 shall apply in the Milwaukee Corridor Pilot Area, except as modified below:
      (1)   No in lieu fee option. The option to pay a fee in lieu of the establishment of affordable units is eliminated in the Milwaukee Corridor Pilot Area.
      (2)   Required percentage of affordable units. The percentage of units required to be affordable in a residential housing project in the Milwaukee Corridor Pilot Area, whether rental or for sale, is increased from 10 percent to 15 percent if all of the affordable units are provided on-site or 20 percent if any affordable units are provided off-site. Notwithstanding the foregoing, whenever the City provides financial assistance, the percentage of units required to be affordable remains 20 percent in accordance with subsection (C)(3) of Section 2-44-080.
      (3)   Affordability standards and income eligibility criteria for rental units. Affordable rental units in the Milwaukee Corridor Pilot Area may be leased to households earning up to eighty percent (80%) of the area median income, but must be affordable to households earning up to sixty percent (60%) of the area median income.
      (4)   Location requirements. If the developer elects to provide affordable units in an off-site location and the Commissioner approves the developer’s off-site proposal under subsection (V) of Section 2-44-080, the off-site units must be located within the Milwaukee Corridor Pilot Area. Such off-site units may be located anywhere in the Milwaukee Corridor Pilot Area, regardless of distance from the residential housing project or income area in which the residential housing project is located. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, all affordable units must be provided on-site.
   (H)   Pending applications. This section shall apply to all residential housing projects subject to the affordable housing requirements of Section 2-44-080, unless: (1) an ordinance authorizing a City land sale or financial assistance, as described in Section 2-44-080(C), has been introduced to City Council prior to November 1, 2017; or (2) an ordinance authorizing a rezoning of property, as described in Section 2-44-080(C), has been introduced to City Council and (i) in the case of projects that are subject to planned development review, the Chicago Plan Commission has adopted a resolution recommending approval of the planned development prior to November 1, 2017, or (ii) in the case of any other rezoning of property, the Committee on Zoning, Landmarks and Building Standards has voted to approve the rezoning prior to November 1, 2017.
   (I)   Rules. The Commissioner is authorized to adopt such rules as the Commissioner may deem necessary for the proper implementation, administration and enforcement of this section. The Commissioner shall provide an annual report to the City Council Committee on Housing and Real Estate detailing the outcomes of the pilot program.
   (J)   Commissioner’s authority to enter into service agreements for marketing, income qualification and other services. In furtherance of administering this section, the Commissioner shall have the authority to enter into service agreements with outside providers selected by the Commissioner to market affordable housing created hereunder and pursuant to other City programs to residents of the Milwaukee Corridor Pilot Area, assist developers of residential housing projects in the Milwaukee Corridor Pilot Area with income qualification of tenants and purchasers of affordable units created hereunder, conduct educational programs for residents of the Milwaukee Corridor Pilot Area regarding the purchase or lease of affordable housing, provide counseling and disseminate information regarding eligibility for affordable housing to residents of the Milwaukee Corridor Pilot Area, and provide other services to ensure that the affordable units created hereunder are effectively marketed and provided to the target populations intended to benefit from such affordable units. Such service agreements may contain terms and conditions that the Commissioner deems appropriate, and the Commissioner shall have the authority to perform any and all acts as shall be necessary or advisable in connection with such service agreements and any renewals thereto, including the expenditure of Affordable Housing Opportunity Fund monies, or other duly appropriated funds, for such agreements.
   (K)   Limited continuing application. This section shall apply to any residential housing project in the Milwaukee Corridor Pilot Area for which the City Council has passed an ordinance approving a rezoning, City land sale, or financial assistance, as described in Section 2-44-080(C), prior to October 1, 2021.
(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1; Amend Coun. J. 11-20-19, p. 9510, Art. II, § 5 and Art. IV, § 5; Amend Coun. J. 12-16-20, p. 25252, § 2 Amend Coun. J. 4-21-21, p. 29627, § 5)
2-44-105 Pilsen-Little Village affordable housing pilot area.
   (A)   Title. This section shalt be known and cited as the "Pilsen-Little Village ARO Pilot Area Ordinance".
   (B)   Purpose. The purpose of this section is to establish modified affordable housing requirements for designated neighborhoods along the proposed El Paseo multi-use trail project that are experiencing gentrification. The goals of these modified requirements are to mitigate the displacement impacts associated with gentrification, better protect the interests of the area’s economically vulnerable residents from demographic and housing market change, and preserve the economic diversity critical to a healthy economy.
   (C)   Relationship To 2015 ARO. The requirements in this section supplement or modify the affordable housing requirements in Section 2-44-080. In the event of a conflict between these requirements and the requirements in Section 2-44-080, the requirements in this section will control; provided, however, when a residential housing project receives financial assistance from TIF Funds, the requirements set forth in Section 2-44-080 will continue to apply and will control in the event of a conflict.
   (D)   Definitions. Except as provided below, defined terms shall have the meanings given in Section 2-44-080:
   "Accelerating" is a term used to describe a census tract that (i) had low to moderate home values in 2015 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), but (ii) experienced a high appreciation rate between 2010 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Additional units" means the extra units required to be affordable under this section in excess of the units required to be affordable under Section 2-44-080.
   "Adjacent" is a term used to describe a census tract that (i) had low to moderate home values in 2015 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), (ii) experienced a low to moderate appreciation rate between 2010 and 2015 (i.e., appreciation rate in the bottom three quintiles of all census tracts in the City), but (iii) touches the boundary of at least one census tract that had high home values in 2015 (i.e., a median home value in the top two quintiles of all census tracts in the City) or a high appreciation rate between 2010 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Affordable unit" means a housing unit required by this section to be affordable, whether located on-site or off-site and whether a rental unit or an owner-occupied unit.
   "Appreciated" is a term used to describe a census tract that (i) had low to moderate home values in 2000 (i.e., a median home value in the bottom three quintiles of all census tracts in the City), and (ii) high home values in 2015 (i.e., a median home value in the top two quintiles of all census tracts in the City), and (iii) experienced a high appreciation rate between 2000 and 2015 (i.e., appreciation rate in the top two quintiles of all census tracts in the City).
   "Demographic change" means a shift in the demographic conditions of an area in which at least three of the following four population changes have occurred from 2010 to 2015, relative to the citywide median: percentage of homeowners has increased; percentage of minorities (as defined in Section 2-92-670) has decreased; percentage of residents with a bachelor’s degree or higher has increased; and median household income has increased.
   "Early displacement" is a term used to classify census tracts that are showing early signs of gentrification. These census tracts (i) have a vulnerable population at risk of displacement from rising housing costs, (ii) have undergone demographic change indicative of gentrification, and (iii) have adjacent, accelerated or appreciated market conditions, as determined by the Commissioner based upon published data regarding Chicago or area median income, the cost of housing, or other data indicative of gentrification or loss of affordable housing.
   "First units" means the units required to be affordable under Section 2-44-080.
   "Little Village" means the neighborhood within the Pilsen-Little Village Pilot Area that consists mainly of census tracts that are susceptible to displacement.
   "Pilsen" means the neighborhood within the Pilsen-Little Village Pilot Area that consists mainly of census tracts that are experiencing early displacement.
   "Susceptible to displacement" is a term used to classify census tracts that are at-risk of gentrification. These census tracts (i) have a vulnerable population at risk of displacement from rising housing costs, (ii) have not undergone demographic change indicative of gentrification, but (iii) have accelerating or adjacent market conditions, as determined by the Commissioner based upon published data regarding Chicago or area median income, the cost of housing or other data indicative of gentrification or loss of affordable housing.
   "Vulnerable population" means a population with at least three of the following four characteristics based on 2015 data: percentage of renters is higher than the citywide median; percentage of minorities (as defined in Section 2-92-670) is higher than the citywide median; percentage of residents without a bachelor’s degree is higher than the citywide median; and median household income is lower than the citywide median.
   (E)   Boundaries. A map of the Pilsen-Little Village Pilot Area is published in the Journal of the Proceedings of the City Council of the City of Chicago of December 12, 2018, page 92139*, and on file in the Office of the City Clerk and made a part hereof. The boundary lines of the Pilsen-Little Village Pilot Area follow streets, and such boundary lines are to be construed as the centerlines of said streets.
* Editor’s note – Coun. J. 12-12-18, p. 92132, § 2, did not include the page number; it has been inserted at the discretion of the editor.
   (F)   Stage of displacement. Pilsen is characterized primarily by early displacement. Little Village is characterized primarily as susceptible to displacement.
   (G)   Modified ARO requirements. The requirements of Section 2-44-080 shall apply in the Pilsen-Little Village Pilot Area, except as modified below:
      (1)   Increased in lieu fees. The in lieu fees for affordable units in the Pilsen-Little Village Pilot Area shall be as follows: (i) $178,469 per affordable unit in Pilsen; and (ii) $101,388 per affordable unit in Little Village. Each in lieu fee shall be subject to the annual adjustment set forth in the definition of "in lieu fee" in Section 2-44-080(B) and collected pursuant to Section 2-44-080(G). Notwithstanding Section 2-44-080(F)(2) – (4), in lieu fees collected within the Pilsen-Little Village Pilot Area shall not be reduced because of any sale or lease of required affordable units in the residential housing project to an authorized agency.
      (2)   Required percentage of affordable units. Except as provided in subsection (3) below, the percentage of units required to be affordable in a residential housing project in the Pilsen-Little Village Pilot Area, whether rental or for sale, is increased from 10 percent to 20 percent.
      (3)   Incentive for larger units. Notwithstanding subsection (2) above, in the Pilsen-Little Village Pilot Area, the Commissioner, after consultation with the alderman of the ward in which the residential housing project is located, may reduce the required number of affordable units in exchange for units with more bedrooms, as follows:
         (i)   one 2-bedroom unit is equivalent to 1.25 studio or 1-bedroom units; and
         (ii)   one 3-bedroom unit is equivalent to 2.5 studio units or two 1-bedroom units.
      (4)   Location requirements. In the Pilsen-Little Village Pilot Area, first units must be provided on-site. Additional units may either be provided on-site or the developer may pay a fee in lieu of the establishment of one or more such additional units. Notwithstanding the foregoing, when a residential housing project receives financial assistance from TIF Funds, all affordable units must be provided on-site.
   (H)   Pending applications. This section shall apply to all residential housing projects subject to the affordable housing requirements in Section 2-44-080, unless: (1) an ordinance authorizing a City land sale or financial assistance, as described in Section 2-44-080(C), has been introduced to City Council prior to January 1, 2019; or (2) an ordinance authorizing a rezoning of property, as described in Section 2-44-080(C), has been introduced to City Council and (i) in the case of projects that are subject to planned development review, the Chicago Plan Commission has adopted a resolution recommending approval of the planned development prior to January 1, 2019, or (ii) in the case of any other rezoning of property, the Committee on Zoning, Landmarks and Building Standards has voted to approve the rezoning prior to January 1, 2019.
   (I)   Rules. The Commissioner is authorized to adopt such rules as the Commissioner may deem necessary for the proper implementation, administration and enforcement of this section. The Commissioner shall provide an annual report to the City Council Committee on Housing and Real Estate detailing the outcomes of the pilot program.
   (J)   Expiration. This section shall expire and be repealed of its own accord, without further action by the City Council, on December 31, 2023.
(Added Coun. J. 12-12-18, p. 92132, § 2; Amend Coun. J. 11-20-19, p. 9510, Art. II, § 6 and Art. IV, § 6)
2-44-106 Affordable conversion units.
   (a)   Title. This section shall be known and cited as the "Affordable Conversion Unit Ordinance" or "ACU Ordinance".
   (b)   Purpose. This section establishes affordability requirements for certain conversion units established in conformity with the Chicago Zoning Ordinance, Title 17 of the Municipal Code of Chicago, in order to preserve and expand available affordable housing in the City.
   (c)   Definitions. As used in this section:
   "Additional Dwelling Unit-Allowed Areas" has the meaning ascribed to that term in Section 17-7-0570.
   "Affordable Conversion Unit(s)" means any one or more affordable housing unit(s) designated as such and required to be registered as such by the Department of Housing pursuant to subsection (e) of this section.
   "Affordable housing unit(s)" means housing that is affordable to households earning up to 60% of the area medium income ("AMI"), as published annually by the Department of Housing. As used in this definition: "Affordable" means annual rent less than or equal to the amount at which total monthly housing costs, as specified in rules duly promulgated by the Commissioner, do not exceed 30% of income for a household making 60% of the area medium income.
   "Area median income" or "AMI" means the median household income for the Chicago Primary Metropolitan Statistical Area, as calculated and adjusted on an annual basis by the United States Department of Housing and Urban Development.
   "Commissioner" means the Commissioner of the Department of Housing.
   "Conversion unit" has the meaning ascribed to that term in Section 17-17-240.6.
   "Owner" has the meaning ascribed to the term "property owner" in Section 17-17-02134.
   "Residential building" means a residential building, as defined in Section 17-17-02146, that is a principal building, as defined in Section 17-17-02125.
   (d)   Affordable conversion units – Required when. If, pursuant to Section 17-2-0303-C, two or more conversion units are added, either separately or in any combination, at any time after the effective date of this ACU Ordinance, to a residential building other than to a residential building owned, operated or maintained by the Chicago Housing Authority, the owner of such building shall maintain 50% of those newly added conversion units as affordable housing units for the duration of the affordability requirement as set forth in subsection (i) of this section; provided, however, that if this 50% calculation results in a fractional number, any such fractional result shall be rounded down to the nearest integer. This subsection (d) shall run with the land and be enforceable against any subsequent owner.
   (e)   Registration. Concurrent with the application by a building owner for a building permit with the Department of Buildings for a conversion unit, the Department of Housing will advise the owner whether any of the proposed conversion units are required to be maintained as affordable housing unit(s). If the owner is required under this section to maintain any of the proposed conversion units as affordable housing unit(s), the owner shall register those designated Affordable Conversion Unit(s) with the Department of Housing in accordance with rules duly promulgated by the Commissioner. Such registration shall be accompanied by the Affordable Conversion Unit Initial Registration Fee for each Affordable Conversion Unit, as set forth in Section 2-44-065, to defray the costs of administering this section.
   (f)   Recorded notice – Required. For each Affordable Conversion Unit, the Department of Housing shall require the owner to record, with the Cook County Recorder of Deeds, a document in a form prescribed by the Commissioner, against the property on which such Affordable Conversion Unit is located indicating that such Affordable Conversion Unit is required to be maintained as an affordable housing unit for the duration of the affordability requirement, as set forth in subsection (i) of this section. Such notice shall require owners and subsequent owners to keep owner contact information, including an e-mail address, current with the Department of Housing.
   (g)   Building permit – Prohibited when. No building permit shall be issued by the Department of Buildings for any Affordable Conversion Unit until: (i) the applicant for such permit provides the Department of Housing with a copy of the recorded notice required under subsection (f) of this section; and (ii) the Department of Housing provides written notification of such fact to the Department of Buildings.
   (h)   Annual compliance affidavit – Required. Each owner of one or more Affordable Conversion Unit(s) shall, on or before January 15 of each calendar year following initial registration of such Affordable Conversion Unit(s) with the Department of Housing, file an annual compliance affidavit with the Department of Housing certifying that each such Affordable Conversion Unit is being maintained as an affordable housing unit within the meaning of this section.
   (i)   Duration of affordability requirement. Each Affordable Conversion Unit shall be maintained as an affordable housing unit for 30 years from the date of the recorded notice required under subsection (f) of this section.
   (j)   Inapplicability of other affordability requirements. Affordable Conversion Units required under this section to be maintained as affordable housing units shall be exempt from Sections 2-44-070, 2-44-080, 2-44-090, 2-44-100 and 2-44-105.
   (k)   Rules. The Commissioner is authorized to adopt such rules as the Commissioner deems necessary or appropriate for the proper implementation, administration and enforcement of this section.
   (l)   Penalty. In addition to any other penalty provided by law, any owner of an Affordable Conversion Unit who violates this section shall be subject to a fine of $500.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.
   (m)   Private right of action. An aggrieved tenant may enforce this section against any owner subject to this section by means of a civil action in which the court may provide injunctive relief or award treble damages and the plaintiffs court costs and reasonable attorney fees.
   (n)   Chicago Low-Income Housing Trust Fund. The Commissioner is authorized to enter into agreements with the Chicago Low-Income Housing Trust Fund to reserve City-funded vouchers for use in connection with conversion units, including but not limited to Affordable Conversion Units and dwelling units in coach houses.
   (o)   Low- and moderate-income household assistance. The Commissioner is authorized to establish grant programs to assist low- and moderate-income households with the construction, rehabilitation (including modifications that enhance accessibility for people with disabilities), and preservation of conversion units, including but not limited to Affordable Conversion Units and dwelling units in coach houses. Funds from the Affordable Housing Opportunity Fund and other sources, as may be appropriated from time to time, are hereby authorized for use in connection with such programs.
   (p)   Recommendation to City Council of expansion of additional dwelling unit-allowed areas. On or before May 31, 2024, the Department of Housing and the Department of Planning and Development shall evaluate the establishment of conversion units (including Affordable Conversion Units) and coach houses in Additional Dwelling Unit-Allowed Areas to reassess best practices for their regulation and to make recommendations to the City Council regarding expansion, contraction or elimination of such Additional Dwelling Unit-Allowed Areas.
(Added Coun. J. 12-16-20, p. 26066, § 3)
2-44-110 Participation by eligible persons in eligible programs.
   (a)   With respect to each Eligible Program (as defined in paragraph (b) below), Eligible Persons (as defined in paragraph (b) below) shall not be subject to the restrictions of Section 2-156-110, but only as that section pertains to the participation of said Eligible Persons under such Eligible Program.
   (b)   As used in this section:
      (i)   "Eligible Programs" shall mean: (1) programs administered by the Department (or by delegate agencies or other entities with funds provided, in whole or in part, by the Department) which provide various forms of economic assistance (including, but not limited to, land write-downs and financial assistance in the form of grants, loans, fee waivers and tax credits) directly to individuals who are tenants in residential buildings in the City or are owner-occupants of one- to four-unit residential buildings in the City (including individuals who are owner-occupants of a condominium unit in the City), or which provide for the rehabilitation of one- to four-unit residential buildings in the City (including one to four condominium units, without regard to the total number of condominium units in the building); and (2) rental subsidy assistance for very low-income households (as "very low-income" may be defined by United States Department of Housing and Urban Development), provided by the Department through The Chicago Low-Income Housing Trust Fund, an Illinois not-for-profit corporation, or through another entity selected by the Commissioner, and which is paid directly to owners of residential buildings in the City.
      (ii)   With respect to each Eligible Program, "Eligible Persons" shall mean employees and appointed officials of the City (other than those persons described in the next succeeding sentence) who meet the eligibility requirements to participate under such Eligible Program. With respect to each Eligible Program, the following employees and appointed officials of the City shall not constitute "Eligible Persons" for such Eligible Program: any employee or appointed official who, during his/her tenure of employment or appointment, respectively, by the City (1) exercises or has exercised any contract management authority with respect to such Eligible Program, (2) is or was in a position to participate in a decision-making process with respect to such Eligible Program, or with respect to a specific project entered into pursuant to such Eligible Program, or (3) gains or has gained confidential information with regard to such Eligible Program.
      (iii)   If an employee or appointed official of the City qualifies as an "Eligible Person" pursuant to paragraph (ii) above, the following shall also qualify as "Eligible Persons": (1) such employee’s or official’s spouse or domestic partner, and (2) any entity in which such employee or official has a "financial interest" (as defined in Section 2-156-010).
   (c)   The Commissioner is authorized to promulgate rules and prepare forms to effectuate the purposes of this section in conformity, to the extent applicable, with subsection (c) of Section 2-44-050.
(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1)
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