Expanded ARO Pilot Pprogram Poised For Chicago City Council Approval

Earlier this week, after a four-hour hearing, the Chicago City Council's Committee on Housing and Real Estate recommended approval of a three-year pilot initiative to expand and modify the City of Chicago's Affordable Requirements Ordinance (the "ARO") in certain areas along the Milwaukee Avenue Corridor and portions of the Near North and Near West areas of Chicago.

It is expected to be approved by the full City Council on October 11, 2017, and will take effect upon its approval and passage. Only the following pending projects in these pilot areas are exempt: (1) an ordinance authorizing a City land sale or financial assistance that is introduced by November 1, 2017; (2) planned developments that receive a favorable recommendation from the Plan Commission by November 1, 2017 (effectively, these must be heard by the Plan Commission at its October 19 hearing); or (3) zoning amendment applications that receive a favorable vote from the Committee on Zoning by November 1, 2017.

The Pilot Program will affect distinct areas that the City has identified as the Milwaukee Corridor Pilot Area, and the Near North/West Pilot Area, which is split into two separate zones. The two pilot areas, and the two zones within the Near North/Near West Pilot Area have differing requirements. The City has created helpful fact sheets showing the areas along with the basic parameters of the ordinances, and how they compare to the wider 2015 ARO. The maps and ordinances can be found at the links below:

Milwaukee Corridor ARO Pilot Area Map Near North/Near West ARO Pilot Area Map

Ordinances: ARO Pilot Ordinance: Milwaukee Corridor ARO Pilot Ordinance: Near North/Near West

Highlights of the ARO Pilot Ordinances

Milwaukee Pilot Area

ARO requirement: 15% if ALL required units are on-site 20% if ANY required units are off-site (off-site units can be located anywhere in Milwaukee Corridor Pilot Area) No ability to buy out of required affordable unit obligations; Affordability and AMI: Eligible tenants can earn up to 80% of AMI Rents must be affordable for households earning 60% of AMI Therefore, although the tenant pool grows, the maximum allowable rent does not increase Notwithstanding the changes in the Pilot Program, projects receiving City financial assistance must make 20% of the proposed units affordable; and projects receiving TIF assistance must locate all required affordable units on site. Near North/Near West Pilot Area Near North Zone:

ARO requirement: 20% First...

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