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(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.
(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)
(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)
(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.
(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)
(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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