Record #: O2021-746   
Type: Ordinance Status: Passed
Intro date: 2/24/2021 Current Controlling Legislative Body: Committee on Finance
Final action: 3/24/2021
Title: Amendment of Municipal Code Chapter 2-44 by adding new Section 2-44-135 imposing building demolition surcharge tax pilot program until April 1, 2022 in Pilsen and 606 trail neighborhoods
Sponsors: Lightfoot, Lori E. , La Spata, Daniel , Ramirez-Rosa, Carlos
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 44 Dept. of Housing
Attachments: 1. O2021-746.pdf, 2. O2021-746 (V1).pdf
ORDINANCE

WHEREAS, The City of Chicago (the "City") is a home rule unit of government pursuant to Article VII, Section 6(a) of the 1970 State of Illinois Constitution and, as such, may exercise any power and perform any function pertaining to its government and affairs; and

WHEREAS, The City has determined that a shortage of affordable housing available to low- and moderate-income households is harmful to the health, prosperity, economic stability and general welfare of the City; and

WHEREAS, The City's current Five Year Housing Plan (2019-2023) recognizes that most ofthe City's existing affordable housing is in unsubsidized, naturally occurring housing, often in the form of older 2-flats and smaller multi-family residential buildings; and

WHEREAS, Protecting such naturally occurring affordable housing is critical to protecting vulnerable households from displacement; and

WHEREAS, Two particular areas in the City are experiencing high levels of gentrification and displacement of vulnerable households: the area adjacent to the 606 trail and the Pilsen neighborhood; and

WHEREAS, The area adjacent to the 606 trail is a transit-rich neighborhood that has experienced significant change due to a major public investment in a neighborhood amenity, and Pilsen is a transit-rich neighborhood that has experienced significant change due to its proximity to downtown jobs and cultural vibrancy; and

WHEREAS, With respect to the 606 area, the Institute for Housing Studies at DePaul University estimates the area lost almost sixty 2- to 6-flat residential buildings to redevelopment as single-family homes between 2013 and 2018, representing hundreds of vulnerable households displaced by the elimination of such unsubsidized and naturally occurring affordable housing; and

WHEREAS, The Institute for Housing Studies has further found that while prices for 1-to 4-unit buildings in areas vulnerable to displacement in the 606 trail area west of Western Avenue were 30 percent below the...

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