(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)