Many cities in the U.S. are facing critical shortages of affordable housing, and Chicago officials announced a more than $300 million investment that will create or maintain more than 1,200 units across the Windy City.
During a Wednesday news conference, Mayor Brandon Johnson and officials from Chicago Department of Housing said the funding would back 15 projects selected through the city’s 2025 Qualified Allocation Plan, which governs access to federal Low-Income Housing Tax Credits and local assistance, TV station Fox32 reported.
“Today we take a transformational step forward in our mission to make ‘housing as a human right’ a reality for every Chicagoan,” Johnson said. “Each unit we build empowers families to plant their roots in our city while increasing the ability for long-time residents to stay in their communities.”
The developments are expected to create or preserve 1,223 rental units, including 1,164 designated as affordable.
Combines Public Funding, Private Investment
The total cost of the projects is an estimated $711 million, combining public funding with private investment through tax credits. Officials said the financing structure will help ensure at least 30 years of affordability for tenants, Fox32 noted.
Fox32 reported that the plan includes a mix of new construction and preservation efforts, with 12 new developments creating 798 units and three rehabilitation projects maintaining affordability for 425 existing units.
The station reported that more than a third of the units will be family-sized, and some will be reserved for households earning as little as 30% of the area median income. The initiative also includes senior housing and developments near public transit.
The total cost of the projects is estimated at $711 million, combining public funding with private investment through tax credits. Officials said the financing structure will help ensure at least 30 years of affordability for tenants.
Illinois Governor Proposed Reform
In March, Illinois Governor J.B. Pritzker proposed a housing and zoning reform initiative intended to increase housing construction and address affordability problems across the state.
Pritzker, a Democrat, announced a new initiative, “Building Up IL Developments” or BUILD, as he unveiled a new $56 billion state budget. The plan calls for modernizing building codes statewide to make it easier to build workforce housing.
“The problem is clear, rent is too high and homeownership is too far out of reach,” Pritzker said. “The cause is clear, too. We are not building enough homes fast enough.”
The plan has met with some opposition, however.
Pritzker’s plan argues that Illinois isn’t building enough homes, which has pushed rents and home prices higher. Pritzker’s proposal aims to remove regulatory barriers and encourage higher-density housing statewide.
