OFFTCE OF THE MAYOR
CITY OF CHICAGO
LORI E. LIGHTFOOT
MAYOR
December 15, 2021
TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO
Ladies and Gentlemen:
At the request ofthe Commissioner ofthe Department of Housing, I transmit herewith, together with Alderman Mitchell, an ordinance authorizing the establishment of a debt waiver program for the purpose of community revilalization.
Your favorable consideration ofthis ordinance will be appreciated.
Very truly yours.
ORDINANCE
WHEREAS, The City of Chicago Department of Housing is committed to creating programs to support acquisition, redevelopment, rehabilitation and re-occupahcy of abandoned buildings citywide; and
WHEREAS, Many buildings that have fallen into disrepair are in low- to moderate-income communities that have experienced significant disinvestment over the past two decades; and
WHEREAS, As part ofthe effort to reclaim and revitalize communities, the Department of Housing has created numerous programs to promote the redevelopment of distressed residential properties; and
WHEREAS, Departmental programs work to support neighborhood efforts to increase safety and security, as well as build community wealth; and
WHEREAS, Many buildings that may benefit from these programs have accrued fines, judgments, water and sewer charges, and other City debt that make redevelopment of these buildings nearly impossible; and
WHEREAS, City debt is a major obstacle to acquisition and rehabilitation, as it often drives the redevelopment costs above the after-rehabilitation value, which effectively eliminates the possibility of a home buyer obtaining mortgage financing; and
WHEREAS, Supporting local developers and removing City debt as an obstacle to the rehabilitation of distressed homes aids the Department of Housing in achieving its goals of promoting community wealth building and encouraging City revitalization; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 2-8-065 of the Municipal Code of Chicago is hereby amended by adding the language underscored, as follows:
2-8-065 Discounted or waived fees - Restrictions.
(a) Definitions. As used in this section:
(Omitted text is unaffected by this ordinance)
(c) Exemptions. The requirements of this section shall not apply to any ordinance or amendment thereto authorizing individual fee waivers (1) for any governmental entity, as defined in subsection (a) of this section, or (2) in connection with a block party, or (3) in connection with the waiver under Section 2-120-815 of any fee charged by the City of Chicago forthe issuance ofany permit requiring approval ofthe Commission on Chicago Historical and Cultural Landmarks, or (4) in connection with the Homeowner-Initiated LSLR Program, or (5) pursuant to the authority granted to the Commissioner of Housing to support neighborhood revitalization efforts under Section 14A-3-313.6.
(Omitted text is unaffected by this ordinance)
SECTION 2. Section 14A-3-313 of the Municipal Code of Chicago is hereby amended by adding a new subsection 14A-3-313.6, as follows:
14A-3-313 NUISANCE ABATEMENT.
14A-3-313.1 Scope.
The following buildings and structures are declared to be public nuisances subject to abatement proceedings under Section 14A-3-313:
(Omitted text is unaffected by this ordinance) 14A-3-313.6 Debt Waiver.
Notwithstanding anv other inconsistent or contrary provision of this Code, following consultation with the building official, or their designee, the Commissioner of Housing is authorized to waive any debt and release associated liens for anv residential or mixed-use building that is included in a Department of Housing initiative or program that supports neighborhood revitalization efforts and is subject to an abatement proceeding under this Section. The Comptroller shall coordinate with the Commissioner of Housing to ensure that the approved waiver is executed.
Approval by the Commissioner of Housing forthe removal of City debt must take into consideration whether the waiver will: (i) promote the redevelopment and re-occupancv of a specific vacant or abandoned building; (ii) support neighborhood development and stabilization efforts; (iii) improve the health, safety, and welfare ofthe surrounding community; and (iv) encourage City revitalization.
For purposes ofthis subsection only, "debt" means a sum of money owed to the City, including, but not limited to, (i) anv water or sewer assessment, or (ii) anv obligation or payment of a sum of money owed to the City pursuant to a court order or an order of the Department of Administrative Hearings. Provided, however, the term "debt" shall not include property tax debt.
SECTION 3. This ordinance shall take full force and effect upon its passage and approval.
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CITY OF CHICAGO
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OFFICE OF THE CITY CLERK ANNA M. VALENCIA
Chicago City Council Co-Sponsor Form
Document No.: 1°2021-587.1 I"
Amendment of Municipal Code Sections 2-8-065,14A-3-313,14A-3-313.1 and 14A-3-313.6
regarding waiver of City debt for distressed residential and mixed-use properties enrolled
in community revitalization and re-occupancv programs . :
Adding Co-Sponsor(s)
Please ADD Co-Sponsor(s) Shown Below-(Principal Sponsor's Consent Required)
(Signature)
Principal Sponsor:. Mayor Lightfoot
(Signature)
Removing Co-Sponsor(s) Please REMOVE Co-Sponsor(s) Below - {Principal Sponsor's Consent NOT Required)
Date Filed:
Final Copies To Be Filed With: • Chairman of Committee to which legislation was referred
• City Clerk
121 NORTH LASALLE STREET, ROOM 107, CHICAGO, ILLINOIS 60602
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