(To read more on the multifamily market, click here.)
CHICAGO-Density bonuses, given to Downtown multifamily developers in exchange for payments to the city's affordable housing fund, could be expanded to outlying neighborhoods. One example would be the Homan Square area on the West Side, Mayor Richard Daley notes, where 300 single-family and multifamily units have been developed under the city's affordable housing effort.
"Homan Square stands as an example of what can happen when we target resources into a neighborhood, toward the people who need our help the most," Daley says. "It changes not only the face of the community, but the lives of the families who live here, and that is what community redevelopment is all about."
Developers have contributed $12 million to the affordable housing opportunity fund in exchange for permission to build beyond zoning restrictions. The city's low-income housing trust fund will get 40% of that money, which will then go for rental assistance.
The city's department of planning and development uses a complex formula based on land costs. For example, a developer proposing to build a 190-unit condominium tower on the northeast corner of Washington and DesPlaines streets is paying $181,146 to build at extra 12,000 sf beyond current zoning limits.
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