Will it Work? Mayor Johnson’s New Plan to Make Chicago Housing Affordable…
Though ahead of its contemporaries, Chicago still has room to grow when it comes to housing affordability. With housing supply dropping to record lows both during and after the pandemic, Chicago Mayor Brandon Johnson has unveiled a new plan to bring affordable real estate back to the city.
The Chicago ‘Cut the Tape’ report includes over 100 new measures to improve housing affordability by making it easier and cheaper for developers to build in the city.
Chicago ‘Cut the Tape’ Report:
More Houses, Less Regulations
Mayor Johnson’s ‘Cut the Tape’ report addresses the housing affordability crisis in Chicago by streamlining development and removing bureaucratic obstacles to real estate construction. “This strategy will quickly increase residential and commercial projects,” the mayor claims, “stimulating business sectors and addressing the urgent need for housing.” Over one hundred unique measures are in the April 2024 report, including the following:
Establishing a process for expedited home development
Reducing the number of design review meetings for the Department of Planning & Development from three to one
Eliminating phase one and two environmental site assessments for selling certain city-owned plots of land
Forming working groups to reduce city-wide administrative burden, overhaul zoning regulations, and simplify construction approvals
Requiring city aldermen to approve construction projects worth more than $5 million
Setting aside 5% of the Chicago housing budget for construction of permanent supportive housing for individuals facing homelessness
Illinois Policy Institute to Mayor Johnson:
“You got it right with Plan B.”
With median single household prices increasing 8.5% year-over-year in March of 2024, the state of Chicago housing affordability left many residents struggling to stay afloat. Mayor Johnson’s initial plan to fund construction with a new luxury property tax was rejected by voters in a March referendum, sending him back to the drawing board during spring of 2024. The ‘Cut the Tape’ report is the latest in a long line of measures taken by Mayor Johnson to boost housing supply and cut costs for residents of the city.
'Bring Chicago Home' Referendum
By making housing development easier and more affordable Mayor Johnson hopes to emulate the successful model set by cities like Minneapolis, where housing supply skyrocketed after implementing new zoning reforms. This proposal has enjoyed a warm reception across Chicago, with experts at the Illinois Policy Institute saying “You got it right with Plan B.”
The Mayor’s $1.25 Billion-dollar Housing Development Plan
The Chicago ‘Cut the Tape’ report wasn’t the only move Mayor Johnson took in 2024, however, with a new plan to borrow $1.25 billion for affordable housing development being introduced to the city council back in February. “The bond proceeds will provide the city with much-needed resources to invest in our neighborhoods.” Mayor Johnson announced. Although the proposal was held up by city council shenanigans, the plan was just recently approved by a 32-17 vote on April 19th. With a massive cash influx for new housing development, as well as new legislation to make construction easier than ever before, many now hope that the mayor’s promise of a ‘new day in Chicago’ is right around the corner.
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