On October 11th, the Chicago City Council passed two ordinances creating three new Affordable Requirements Ordinance zones. The new requirements eliminate the option to pay an in-lieu fee in the pilot zones, and require affordable units to be built on-site, or within the same pilot zone. Maps of the pilot zones, provided by Department of Planning and Development, can be found here and here.

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% affordable, with the first 10% on-site or within 2 miles and in the same Pilot zone and/or higher income ARO zone; 10% additional may be built anywhere in the same Pilot zone;
  • The Near West Zone requires 15% affordable, with the first 10% on-site or within 2 miles and in the Pilot zone and/or higher income ARO zone; 5% additional may be built anywhere in the same Pilot zone;
  • The Milwaukee Corridor requires 15% affordable on-site units or 20% off-site units within the same Pilot zone; and
  • Each of the pilot zones will require 20% on-site if the project receives TIF funding.

These new requirements will effect 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.