Fall 2018 changes to the ARO Pilot Areas

Published on Nov. 30, 2018 by Steven Vance


Update: The ordinance was adopted at the December 12, 2018, City Council meeting and the Pilot Areas are now in our database. When you look up an address the Snapshot will notify you if it’s in a Pilot Area.

This month Mayor Emanuel proposed two new ARO Pilot Areas covering Pilsen and Little Village, respectively. The Affordable Requirements Ordinance (ARO) Pilot Areas program changes some of the ARO rules based on neighborhood-specific policies. Per the ARO, developers of multi-family housing who are building 10 or more units and receive a zoning change, TIF assistance, or city-owned land, must create some affordable units. In Pilot Areas, the amount they create is increased and the option to pay an in lieu fee is eliminated.

A difference in these new Pilot Areas is that the in lieu fee option is still available, but the pricing is updated.

Cityscape Pro members will be advised if a location they look up on Address Snapshot is in any of the ARO Pilot Areas (including the two proposed ones). If you don’t have a Pro membership, there’s a free trial, or consider purchasing Pro-level access to a single Address Snapshot report.

The two Pilot Areas (here’s the ordinance):

  • Pilsen — This Pilot Area “escapes” Pilsen and comes up to the West Loop area to envelop some parcels north of the Eisenhower Expressway. One of those parcels was approved recently for redevelopment by Tandem Partners, but since their approval will predate adoption, Tandem doesn’t have to comply with the revised rules. The area also envelops a lot of Little Italy, some of the University of Illinois at Chicago (UIC) campus, Roosevelt Square, and ABLA Brooks Homes. The in lieu fee here is $178,469 per unit.
Map showing a portion of the proposed Pilsen ARO Pilot Area that isn’t in Pilsen.
  • Little Village— This proposed ARO Pilot Area’s boundary is more straightforward, as it is coterminous with the majority of the South Lawndale community area boundary. The in lieu fee here is $101,388.
Map showing where the proposed Little Village ARO Pilot Area doesn’t fully overlap the South Lawndale community area boundary (between the blue and gray lines).

Our pre-development and zoning services partner MAP Strategies can provide you with more information about the details of the ARO. Their seminar is geared towards developers and architects who need to know the regulations and calculations.


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