Mayor Emanuel’s proposal to address gentrification concerns and the lack of affordable housing in hot neighborhoods was passed by City Council in October and was effective November 1. The existing Affordable Requirements Ordinance is amended by changing the rules in three geographies, or ARO pilot areas.
The rules will expire in three years, increase the portion of dwelling units that must be rented or sold to households meeting a maximum income requirement, and disallows developers from paying the “in lieu” fee.
The areas are called Near North, Near West, and Milwaukee Corridor. Our Address Snapshot reports will indicate if a property is within a pilot area.
The new rules in the pilot areas affect any ARO-applicable project proposed on or after November 1, 2017. This includes developments that have to go to City Council for a zoning change, planned development, or are receiving city-owned land or financial assistance.
Read the City’s 2015 ARO rules
Near West
Includes nearly all of East Garfield Park, most of West Garfield Park, and a large portion Humboldt Park, and a fifth of the Near West Side. View map.
- Affordable unit set aside increases from 10% to 15%
- First 10% must be either (1) built on-site, or (2) within 2 miles and (a) in the Pilot Area or (b) in a Higher Income ARO zone (look up an address to check its current ARO zone status)
- Remaining 5 of the 15% can be built anywhere in pilot area, and may be affordable for household earning up to 100% of AMI if the underlying ARO zone is Low-Moderate Income, and up to 80% of AMI if the underlying ARO zone is Higher Income or Downtown. (This means that a higher rent can be charged; versus normal 60%.)
- In rental projects, these ARO requirements can be satisfied by building for-sale units
- If TIF-funded, 20% of the units must be affordable and built on-site
Near North
Includes a third of the Near North Side, a fifth of the Near West Side, and nearly a fifth of West Town. View map.
- In lieu fee option not available
- Affordable unit set aside increases from 10% to 20%
- First 10% must be either (1) built on-site, or (2) within 2 miles and (a) in the Pilot Area or (b) in a Higher Income ARO zone
- For-sale projects: First 10 of the 20% may instead be built as rental units
- Remaining 10 of the 20% can be built on-site, or off-site anywhere else in pilot area, and may be affordable for household earning up to 100% of AMI if the underlying ARO zone is Low-Moderate Income, and up to 80% of AMI if the underlying ARO zone is Higher Income or Downtown. (This means that a higher rent can be charged; versus normal 60%.)
- In rental projects, these ARO requirements can be satisfied by building for-sale units
- If TIF-funded, all of the 20% must be built on-site
Milwaukee Corridor
Includes nearly all of Avondale, most of Logan Square and West Town, and portions of Irving Park and Humboldt Park. View map.
- Affordable unit set-aside increases from 10%, with 1/4 of the units on-site, to 15% and all on-site, or 20% if any of the units are off-site (and all off-site units must be within pilot area)
- Rental units are priced for households earning up to 60% of the AMI, but can be rented to households earning up to 80% of the AMI