Chicago Sun Times Editorial - City should do more to expand affordable housing

Chicago Sun Times Editorial - City should do more to expand affordable housing
Copyright by The Chicago Sun Times
November 27, 2006


A distressing consequence of Chicago's recent real estate boom is that the city has become less affordable for many citizens -- including some teaching in our schools, responding to life-threatening emergencies and working in many other city jobs. Mayor Daley has responded by proposing to expand a city program aimed at developing more affordable housing. But a coalition of neighborhood and housing groups argues that Daley's plan, while encouraging, doesn't go far enough.

The problem is real. One out of three homeowners is spending more than 35 percent of their income on housing. And only 20 percent of Chicago households can afford to pay the current median home price of about $250,000.

More renters are also spending a greater percentage of their income on housing. Meanwhile, the inventory of rental apartments has fallen, and of those left, just 7 percent were affordable to the poorest 20 percent of households in Chicago in 2000, down from 14 percent in 1980.

Chicago already requires developers who receive city subsidies to make 20 percent of their units affordable. If they are building on city-subsidized land, they must set aside 10 percent of their units as affordable. The mayor's expanded proposal would require developments of buildings with 10 or more units to set aside 10 percent as affordable if the building is part of a planned development, if it uses any city land or if it needs a zoning change that increases density or creates a new residential use.

Developers could opt to pay an affordable housing trust fund $100,000 per unit in lieu of building affordable housing. The fund is used to subsidize rent for low-income citizens.

Several aldermen and a group called the Balanced Development Coalition want an even broader expansion of the program. They are pushing a plan to require all developers of buildings of 10 or more units to set aside 15 percent of their units for affordable housing. They also favor lowering the prices of the affordable homes so that more Chicago families can buy them.

Daley and others have argued against such mandatory set-asides for all development, including buildings that receive no public funding. But we believe the requirement can be justified, given the need and the public good of maintaining affordable housing in the city. Who wants a city that only the rich can afford to live in? And other cities have similar programs that have not stopped or slowed development.

Daley's proposal is a good plan, and we'd be satisfied if that was all the City Council approved. But the city would be better served if aldermen adopted in whole or in part an even greater expansion.