OFFICE OF THE MAYOR
CITY OF CHICAGO
LORI E. LIGHTFOOT Mayor
January 27, 2021
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request of the Commissioner of Housing, I transmit herewith an ordinance amending 2-44-080 ofthe Municipal Code regarding a 30-year renewable term supporting Chicago Community Land Trust properties under the Affordable Requirements Ordinance.
Your favorable consideration of this ordinance will be appreciated.
Very truly yours,
CITY OF CHICAGO
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OFFICE OF THE CITY CLERK ANNA M. VALENCIA
,Chicago City Council Co-Sponsor Form
02021-446
Amendment of Municipal Code 2-44-080 regarding thirty year affordability requirement restrictions
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121 NORTH LASALLE STREET, ROOM 107, CHICAGO, ILLINOIS 60602
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
WHEREAS, Pursuant to its home rule power, the City may exercise any power and perform any function pertaining to its government and affairs, including the power to regulate for the protection of the public health, safety, morals and welfare; and
WHEREAS, The adoption of Section 2-44-080 (the "2015 ARO") of the Municipal Code of the City of Chicago (the "Code"), was in response to affordable housing issues that are on-going; and
WHEREAS, the 2015 ARO is currently undergoing significant revisions that will include a provision to renew the 30-year term at every point of resale for ownership units created; and
WHEREAS, creating a renewable term will sustain the affordable housing units created before the adoption of the revised 2015 ARO; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 2-44-080 of the Code is hereby amended by deleting the struck-through language and inserting the underscored language, as follows:
2-44-080 2015 Affordable Requirements
(Omitted text is unaffected by this ordinance)
(H) Duration of affordability restrictions. Tho affordable units required by this soction shall continue to bo affordable housing for a minimum period of 30 years after tho initial sale or rental of tho affordable unit, as follows!
(1) In the case of owner-occupied housing, the affordability period is 30 years, provided that if the affordable unit is sold within an existing 30-year term, such units shall be subject to a new affordability period of 30 years beginning on the date of such sale tho owner of the affordable unit at the expiration ofthe 30 year affordability period shall have the option, when the owner elects to soil, of: (a) paying an amount equal to fifty percent (50%) ofthe difforencobotwecn the affordable unit'G market value ond its affordable price, ao determined at the time of ouch sale, in which ovent the Deportment will reloase the affordable housing agreement reoordod against the unit, or (b) in lieu of paying the amount specified in (a), selling the unit to an eligible household at on affordable price, subject toon affordable housing agreement in the City's then current
F
In the case of rental housing, the affordability period is 30 years after the initial rental; provided that if the affordable unit is converted to a condominium unit within 30 years after its initial rental, such units shall be subject to the provisions of this section that apply to owner-occupied units and a new afford ability period of 30 years shall begin on the date of the initial sale of such condominium unit.
Notwithstanding subsection (H)( 1), if the owner of the affordable unit occupies the affordable unit as his principal residence for a continuous period of 30 years, the City shall release the afford able housing agreement without further obligation on the owner's part.
SECTION 2. This ordinance shall be in full force and effect upon passage and approval.