Issue Overview
Two proposals have been introduced in Chicago that would establish a Social Housing Corporation: Social Housing Corporation (O2025-0014832) and Green Social Housing Corporation (O2025-0015560). While there are two proposals on the table, it is predicted that one comprehensive piece of legislation will move forward.
Last year, the Affordable Housing and Economic Development Bond measure was adopted, and the supplemental Social Housing Corporation proposals are intended to enable a non-profit entity to facilitate affordable housing development.
Currently, a critical funding source for affordable housing development is the Low Income Housing Tax Credit (LIHTC), but the program has significant limitations and is not meeting demand. Therefore, City Council is considering the enabling legislation as new and creative solutions to encourage affordable housing development. Similar local programs exist in Atlanta, GA; Cambridge, MA; Chattanooga, TN; and Montgomery County, MD.
Overview of Green Social Housing
Introduced on February 19th by the Mayor’s Office, the Green Social Housing Corporation would establish a not-for-profit real estate development entity that would finance, acquire, own and operate, permanently-affordable, mixed-use, and environmentally sustainable housing. When possible, using funding from Bonds, the Corporation would prioritize the creation of deeply affordable units (for those earning less than 30% of the Area Median Income).
The Corporation would be governed by a Board of Directors, members of the BOD would be city officials, including the Chief Sustainability Officer and Commissioner of Planning and Development. Between five and seven members would be appointed based on their professional expertise. They must have experience in at least one of the following: market rate real estate development, affordable housing development, tenant organization or tenant rights advocacy, affordable housing research or advocacy, environmental and sustainability research, or be a resident of affordable housing. There are no governing spots specifically for REALTORS®.
Reporting would be on a quarterly basis through the Chair of the Committee on Finance within City Council. Any other funding sources (loan or grant) would require approval by the Budget Director. Projects proposed by the Corporation above $5 million would be approved by City Council.
Social Housing Corporation
Introduced by Aldermen Gil Villegas (36) and Maria Hadden (49) on January 15th, the bill would enable a ‘Social Housing Corporation,’ a not-for-profit entity that is intended to enhance affordable housing development by acquiring, developing, and operating housing developments. The Corporation would be governed by a Board of Directors, including the Chairs of both the Housing and Zoning Committee, and the Commissioners of both Housing and Planning. There would also be appointed members from the community applying to serve on the Corporation, although there are no governing spots specifically for REALTORS®.
The Corporation would use funding from the Affordable Housing and Economic Development Bond program that was authorized in 2024 but would be able to apply for various grants or loans for development funding.
COMPARISON OF SOCIAL HOUSING CORPORATION PROPOSALS
Key Similarities
- Purpose to fill a gap in affordable housing development.
- Governance of the “Corporation” is through a combination of city staff and community representatives.
- Mixed income approach to development and housing.
- Supplementation to the Affordable Housing and Economic Development Bond measure that passed in April 2024.
- REALTORS® could apply to serve on the Corporation’s Board, although they must have specific experience to be considered.
Key Differences
- ‘Green Social’ has a priority for deeply affordable housing of 30% AMI.
- ‘Social’ does not define “affordable housing,” but it is assumed the housing would be in alignment with the Bond measure that passed Bond measure.
- ‘Green Social’ has specified tenant rights advocacy groups as eligible for participation in governance/service on Board of Directors.
- ‘Green Social’ has a “sustainability” building requirement for construction.
- ‘Green Social’ is intended for development projects, whereas the ‘Social’ proposal is intended to retrofit and turn vacant properties into use.
Legislative Outlook
Both ordinances were sent to Rules Committee following introduction. However, Rules re-referred the Green Social Housing proposal to a joint Committee of Finance and Housing and Real Estate, advancing this proposal over the Social Housing Corporation proposal. Since the Green Social Housing version has moved out of Rules, it is assumed this proposal will be the one council negotiates and/or amends.
A Joint Committee with Finance and Housing and Real Estate is scheduled for Wednesday, April 9. A substitute proposal may be available prior to the meeting or the substitute proposal could be directly introduced at the Joint Committee meeting.
REALTOR® Stance
REALTORS® are supportive of efforts to increase housing affordability and were supportive of efforts to shift community funding from TIFs to Bonds in 2024.
REALTORS® strongly support policies that advance increasing housing supply for affordable housing and market rate units. Some existing examples of policy changes immediately needed that would increase housing supply include: reducing regulatory burdens on the development/permitting process and enacting a city-wide policy for Accessory Dwelling Units (ADUs). While there are many tools in the toolbox to address affordability, REALTORS® stand ready to offer perspective on various hurdles to housing development throughout all neighborhoods.