The Chicago City Council will likely vote this week on the Sweet Home Chicago Ordinance, which would require the City to provide an amount equal to at least 20 percent of the aggregate tax increment collected through the TIF Districts in the City during a fiscal year to the development and preservation of affordable housing during the next fiscal year. The Ordinance passed out of the City Council Joint Committee on Finance and Housing on November 15th by a vote of 13 to 8.
The Ordinance establishes criteria for residential developments to receive a portion of the affordable housing set-aside. Residential rental developments would qualify to receive funds if at least 50 percent of the units are affordable to households earning less than $37,000 per year for a family of four, 50% of the Chicago Metropolitan Statistical Area median income adjusted for household size. Residential for-sale developments would qualify to receive funds if at least 50 percent of the units are affordable to families of four earning less than $60,300 per year, 80% of the Chicago Metropolitan Statistical Area median income adjusted for household size.
In addition, the Ordinance requires that, on a citywide basis, 40 percent of the units created with affordable housing funds be affordable for households earning less than $22,600 per year for a family of four, 30% of the Chicago Metropolitan Statistical Area median income adjusted for household size.
Proponents of the Ordinance, which has been held in the City Council Joint Committee on Finance and Housing since March, say that approximately $100 Million would be available in TIF money in 2011 to build or rehabilitate affordable housing in the City. In addition, proponents claim that the Ordinance would help create approximately 3,000 Chicago jobs in construction, architecture and real estate. If the Ordinance is adopted by the full City Council on Wednesday, it would still have to survive a possible veto by Mayor Daley.