Chicago's Affordable Requirements Ordinance MCC 2-44-080 requires residential developments of 10 or more units that receive city zoning bonuses, financial assistance, or are on city-owned land to set aside 20 percent affordable units, build off-site, or pay an in-lieu fee.
Adopted in 2003 and significantly revised in 2021, the Affordable Requirements Ordinance (ARO) under MCC 2-44-080 covers residential projects of 10 or more units that receive city zoning bonuses, public land, financial assistance, or planned development approval. Developers must provide 20 percent of units affordable on-site (rental at 60 percent area median income, ownership at 100 percent AMI), build replacement units within two miles, or pay an in-lieu fee that varies by zone: roughly $135,000 per unit in the downtown high-cost zone, lower in low-income community zones. The Department of Housing administers the ARO Bonus and the Chicago Low-Income Housing Trust Fund collects fees. Density bonuses up to 40 percent reward higher on-site set-asides.
Failure to comply blocks zoning approval and certificate of occupancy. The Department of Housing may seek injunctive relief, recapture of bonuses, fines up to $500 per day per unit, and revocation of city financial assistance under MCC 2-44-090.
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