The Affordable Requirements Ordinance was enacted in 2003 and revised in 2007 to expand access to housing for low-income and moderate-income households and to preserve the long-term affordability of such housing in the Chicago. The report makes a point of identifying other jurisdictions with similar ordinances and provides a synopsis. Affordable Requirements Ordinance (ARO). What is ARO- Chicago’s Affordable Requirements Ordinance? What is the Affordable Requirements Ordinance (ARO)? The organization was established with the expressed purpose to ensure that these units remain permanently affordable. The City of Chicago Office of Inspector General (OIG) has completed a follow-up to its March 2017 audit of the Department of Planning and Development’s (DPD) administration of the Affordable Requirements Ordinance (ARO). Refer to the City Clerk of Chicago for the most recent ordinance or contact us directly if you have questions or concerns . Developments subject to the ARO are required to set aside 10% of units to be built as affordable housing, with projects receiving financial assistance from the City … The City of Chicago's Affordable Requirements Ordinance requires residential developments that receive city financial assistance or involve city-owned land to provide a percentage of units at affordable prices. By: Charles Dabah. By: Charles Dabah. The Chicago Department of Housing has selected a diverse group of 20 people to strengthen the city’s Affordable Requirements Ordinance. The extension is designed to buy city leaders more time to approve a long-planned overhaul of the Affordable Requirements Ordinance. The task force consists of 20 individuals, as well as elected and unelected co-chairs. The City of Chicago’s Affordable Requirements Ordinance requires residential developments that receive city financial assistance including upzoning or involve city-owned land to provide a percentage of units at affordable prices. Affordable Requirements Ordinance INTRODUCTION The Affordable Requirements Ordinance (ARO) is one of the City’s strongest, most efficient tools to create affordable housing. To date, no paperwork has been offered to substantiate this, and the Building Commissioner has no knowledge of this requirement. The Chicago Department of Housing published its interactive Affordable Requirements Ordinance dashboard today. Contact. Refer to the City Clerk of Chicago/ Housing for the most recent ordinance. There are a number of pending changes to the ordinance being considered by the Chicago City Council and substantive pieces of even this Q and A may be modified or nullified as a result. The Affordable Requirements Ordinance (ARO) Dashboard is a tool developed by the Chicago Department of Housing to make the Department’s data on the ARO more accessible and transparent, and to inform future decision-making. The Affordable Requirements Ordinance was first implemented in 2007. The ordinance applies to residential developments of 10 or more units and requires that developers provide 10 percent of their units at affordable prices, based on the Area Median Income (AMI). Chicago Baseball 2003 Consumer Confidence Index The unit would be associated with another project of the developers and would be aimed at achieving the off-site unit requirements outlined within Chicago’s Affordable Requirements Ordinance (ARO). The City of Chicago Office of Inspector General (OIG) has completed a follow-up to its March 2017 audit of the Department of Planning and Development’s (DPD) administration of the Affordable Requirements Ordinance (ARO). The Ordinance requires the City, in turn, to use these fees to advance affordable housing development in Chicago. Affordable Requirements Ordinance Articles and posts. A significant complaint of the current way the ARO functions is builders have affordable units that sit vacant for long periods of time and conversely, potential renters and purchasers do not know how to be certified as affordable housing candidates. The Affordable Requirements Ordinance has not remained free from legal challenges, as the Home Builders Association of Greater Chicago recently filed suit challenging the 2007 iteration. The City of Chicago’s Affordable Requirements Ordinance requires residential developments that receive city financial assistance including upzoning or involve city-owned land to provide a percentage of units at affordable prices. Chicago Council Passes Affordable Housing Ordinance For Woodlawn - Chicago, IL - The city also enacted a pilot program that gives tenants first right of refusal if their building goes up for sale. It's the first step to revamping Chicago's Affordable Requirements Ordinance, which requires developers to include affordable apartments or condos in … In March 2015, the city approved regulatory changes to the ARO that came into effect in October 2015. Each iteration of the ARO sought to incorporate lessons learned, account for changing behavior in the housing market, and reposition the City to increase its housing affordability. The elected co-chairs are Aldermen Walter Burnett (27th), Harry Osterman (48th) and Byron Sigcho-Lopez (25th). In October 2015, the City of Chicago revised its Affordable Requirements Ordinance (ARO), marking its third amendment to the policy since its adoption in 2003. The 2015 Affordable Requirements Ordinance (ARO) is effective on October 13, 2015, and available to read in its entirety online in Section 2-45-115 of the City's Municipal Code at City's Municipal Code. A federal judge recently dismissed a lawsuit by the Home Builders Association of Greater Chicago and a Chicago developer that challenged the city's Affordable Requirements Ordinance… The City of Chicago’s Affordable Requirements Ordinance requires residential developments that receive city financial assistance including upzoning or involve city-owned land to provide a percentage of units at affordable prices. chicago affordable requirements ordinance Contact Us. It’s the fourth development Martin has approved that provides at least twice as many units below market value than required, said Josh Mark, director of development and infrastructure for the 47th Ward. When costs prevent housing developments to be built, problems arise because demand is high while supply has been restricted. It replaced an initial but limited program adopted in 2003. All Rights Reserved. The mayor is looking to review the city's Affordable Requirements Ordinance as she pushes back on demands by the Chicago Teachers Union that its … The website shows where residential units have been built as a result of the City’s ARO law, in place since 2003. Goal. Developers and low-and-moderate income families. UPDATE 9/29/2020: On Monday, September 14, the City of Chicago Department of Housing released the Affordable Housing Task Force Report, which can be read in full here. As of November 2019, the Mayor convened an Inclusionary Housing Task Force. One program the department oversees is the Affordable Requirements Ordinance (ARO), which requires developers who receive something from the city, like funding or a zoning change, to keep a percentage of their units affordable. A housing developer that is seeking city financial assistance or a zoning change to increase housing density is required to set aside 10 percent of the units for long-term affordability or make a payment in lieu of setting aside units. Established in 2003 and expanded in 2007, the ARO applies to new or rehabilitated housing developments with 10 or more units that involve a zoning increase or The Affordable Requirements Ordinance sets the rules for developers that receive city support to either provide housing units for lower-income residents or … Chicago’s current Affordable Requirements Ordinance (ARO) mandates a minimum of 10 percent affordable housing in projects seeking a zoning change or financial assistance from the city. The City of Chicago's Affordable Requirements Ordinance requires residential developments that receive City financial assistance or involve City-owned land to provide a percentage of units at affordable prices. The Naperville City Council unanimously directed staff to begin work on a zoning ordinance that would require developers to include affordable options in new housing developments. INTRODUCTION Since its adoption in 2003, Chicago’s Affordable Requirements Ordinance (ARO) has been an important mechanism for the creation of affordable rental and for-sale housing in private-market developments. Any changes to the Affordable Requirement Ordinance will go through a public comment period and will need the support of the Chicago City Council to take effect. 430 North Michigan Ave. Suite 800 Chicago, IL 60611, The Chicago Association of REALTORS® Foundation, Customizable Social Graphics with Photofy, Initial Reaction to the City of Chicago’s ARO Task Force Report, Chicago REALTORS® Meet with Representatives from the ARO Task Force, Aldermen OK New Affordable Requirements Ordinance, Navigating the New Affordable Requirements Ordinance (ARO), Aldermen get an earful on eve of affordable task force’s first meeting, he debate over how Chicago should build affordable housing, explained. Originally passed in 2003, the program was amended in 2007 and, most recently, in 2015. Want to live downtown? AFFORDABLE REQUIREMENTS ORDINANCE (ARO) FAQ’S. Financing . chicago affordable requirements ordinance Contact Us. Here’s how Chicago’s Affordable Requirements Ordinance works. Each zone contains slightly different requirements for the percentage of affordable housing which must be included in a development: The Near North Zone requires 20 percent affordable housing, with the first 10 percent on-site or within two miles and in the same pilot zone and/or higher income ARO zone; 10 percent additional may be built anywhere in the same pilot zone; The Near West Zone requires 15 percent affordable housing, with the first 10 percent on-site or within two miles and in the pilot zone and/or higher income ARO zone; five percent additional may be built anywhere in the same pilot zone; The Milwaukee Corridor requires 15 percent affordable on-site units or 20 percent off-site units within the same Pilot zone; and. CHICAGO (WLS) -- For many it's a real struggle to find an affordable place to live in Chicago, despite an ordinance that's supposed to help create more homes people can afford. The ARO requires certain private market residential developers1 to designate a percentage of units on site as affordable and/or pay an in-lieu fee to the City. Chicago Affordable Requirements Ordinance Dashboard. Related Contact. The proposal includes four affordable units, rather than the two required by the Affordable Requirements Ordinance. Copyright © 2021 WLS-TV. Since its adoption in 2003, Chicago’s Affordable Requirements Ordinance (ARO) has been an important mechanism for the creation of affordable rental and for-sale housing in private-market developments. But activists and real estate interests have focused on the city’s Affordable Requirements Ordinance as the most immediate way to reduce the shortfall of affordable homes, said Leah Levinger, executive director of the Chicago Housing Initiative and a lead organizer with the Our Home, Chicago … The ARO is designed to economically blend rental or owner occupied market rate developments to allow for occupancy by qualified individuals or … Post-2015 changes being advocated for include: These new requirements will affect new residential developments in the respective zones that contain 10 or more units and a zoning change, or new residential developments in the respective zones that involve a city land sale or receive city funding. A zoning change is granted that increases project density or allows a residential use not previously allowed, The development is a “planned development” within the downtown area. News. of Chicago’s Affordable Requirements Ordinance (ARO) and the changes that the City made applicable in October 2015. Target. In March 2015, the city approved regulatory The ordinance also applies if: Since the 2015 revisions, the Department of Housing has unveiled a dashboard to provide transparency for both the ARO units built and how they are occupied, which can be viewed here. Traditionally, REALTORS® oppose any increases in real estate-related taxes and/or fees that will increase the cost of a transaction. Chicago's Affordable Requirements Ordinance, known as the ARO, was developed years ago as a tool to help create more affordable units, but a developer-friendly … Chicago IL: Affordable Requirements Ordinance Chicago, with its population of 2.8 million, is now the largest jurisdiction with an inclusionary zoning program. Chicago IL: Affordable Requirements Ordinance INTRODUCTION The City of Chicago passed its current mandatory inclusionary zoning program, the Affordable Requirements Ordinance (ARO), in May 2007. CAR is hosting an ARO Focus Group to discuss these matters and ensure the city understands our position. The REALTORS® may submit a FOIA to substantiate the claim. "Chicago Affordable Requirements Ordinance: Lessons Learned" presented by Anthony Simpkins from Chicago's Department of Planning and Development. Since 2004, what the city now calls its Affordable Requirements Ordinance, or ARO, has funded construction of about 1,500 units for households with low or moderate incomes, the report said. Affordable Requirements Ordinance. Recently adopted after resistance from a powerful mayor, this program represents a political compromise that falls short of what was sought by the proponents of the program. 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