On Friday, April 26, Chicago City Council approved a bond measure to help fund affordable housing and economic development programs for the next five years. A total of $1.25 billion was approved for the use of general obligation bonds to go towards affordable housing, economic development and homeownership programs.
The use of these bonds will cause a shift away from using Tax Increment Financing (TIF) for various programs within the city departments. The debt service for the bond program is fully paid out of existing property taxes returning to the city from expiring TIFs. Current projections make it clear that a property tax increase will not result from this bond proposal. To learn more, review Illinois REALTORS® Issue Summary regarding the proposal.
After extensive review and discussion by the Chicago Association of REALTORS® Public Policy Coordinating Committee and Board of Directors, the association voted to support this ordinance. Read the statement on the position here. On Monday, April 15th, Illinois REALTORS® 2024 President Matt Silver testified at the City Council Finance Committee in support of the shift from TIFs to bonds, and Illinois REALTORS® engaged in direct lobbying of aldermen to support the initiative. Read Matt Silver’s comments to the Finance Committee here.
REALTORS® are committed to encouraging investments throughout the City of Chicago and its 77 neighborhoods. The bond measure is an opportunity to attract various real estate development projects that were not previously eligible for financing under the TIF program. It disperses funds in a more equitable manner, which will help develop the South and West Sides, increase rates of homeownership, improve existing housing and fund critically needed affordable housing projects in Chicago.