Chicago City Council Passes Mayor Johnson’s Landmark Green Social Housing Ordinance
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CHICAGO ~ Chicago City Council Passes Mayor Johnson's Green Social Housing Ordinance

In a groundbreaking move, the Chicago City Council has passed Mayor Brandon Johnson's Green Social Housing (GSH) Ordinance. This innovative initiative aims to expand affordable housing in the city while also upholding Chicago's green building standards. With this ordinance, Chicago becomes the first major city in the country to implement this model for developing permanent affordable housing.

Mayor Johnson expressed his confidence that GSH will become a model for the nation, stating, "At a time when federal funds for housing are uncertain, we continue to develop tools to make Chicago the safest and most affordable big city in America." He also highlighted that this work is part of the Housing and Economic Development Bond, which is the largest investment in affordable housing and economic development in Chicago's history.

The urgency behind this ordinance is clear as over half of all Chicago renters are considered 'cost-burdened,' meaning they spend more than 30% of their income on housing costs. With federal support for housing programs like the Low-Income Housing Tax Credit (LIHTC) becoming increasingly precarious, Chicago is taking proactive steps towards developing progressive and community-centered solutions.

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Department of Housing Commissioner Lissette Castañeda emphasized that this model allows for the creation of permanently affordable, mixed-income housing that is sustainable, community-led, and responsive to the real needs of Chicagoans. She stated, "We are not just building homes; we are creating healthier communities and ensuring long-term affordability for generations to come."

The GSH will be funded with $135 million from Mayor Johnson's Housing and Economic Development (HED) Bond. A newly created nonprofit called The Residential Investment Corporation (RIC) will operate independently from the Department of Housing and primarily own and operate these developments. Profits from these projects will be reinvested into future developments or used to increase affordability.

The RIC will collaborate with private developers and retain majority ownership during construction and after stabilization. This model combines the efficiency of the private sector with lasting community benefits. Through this initiative, Chicago is also reinforcing its Climate Action Plan and Environmental Justice Action Plan, which aim to protect the city's natural resources, reduce emissions, and help residents thrive.

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The first Green Social Housing development is expected to break ground in 2026. Angela Tovar, Chicago's Chief Sustainability Officer and Department of Environment Commissioner, highlighted the importance of this ordinance in promoting both housing justice and climate action. She stated, "Through Green Social Housing, Chicago is advancing a new model for sustainable development where affordable housing meets green building standards and also provides safe, healthy, and affordable living for families."

In addition to promoting sustainability and affordability, the GSH ordinance also includes protections for workers and reinforces Chicago's values around equity and inclusion. Projects will follow the Illinois Prevailing Wage Act and the City's M/WBE program. Additional preferences have been added for veterans and people with disabilities, and the governance structure was shaped with input from the City Council to ensure effective oversight and transparency.

While other cities such as Atlanta, Chattanooga, and Montgomery County have experimented with the Social Housing model, Chicago will be the largest city in the nation to implement this cutting-edge approach. The city has also authorized the largest revolving fund for this purpose.

With the passage of this ordinance, Chicago has taken a significant step towards addressing its housing crisis while also promoting sustainability and equity. This bold move sets an example for other cities to follow in creating innovative solutions to pressing social issues.

Filed Under: Government, City

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