The Affordable Requirements Ordinance MCC 2-44-080 requires residential projects with ten-plus units that receive city support or upzoning to dedicate 10 to 30 percent affordable units, paying in-lieu fees or earning density and FAR bonuses.
Chicago's inclusionary zoning is the Affordable Requirements Ordinance (ARO), most recently amended in 2021. MCC 2-44-080 applies to residential projects of ten or more units that receive city financial assistance, downtown bonus density, planned developments, or zoning amendments. Standard requirement is 20 percent affordable units citywide, rising to 30 percent in selected neighborhoods. At least half must be built on-site or off-site within two miles; the rest may be paid in-lieu to the Affordable Housing Opportunity Fund at $50,000 to $200,000 per unit depending on submarket. Downtown bonus FAR is calibrated to ARO compliance; planned developments score Sustainable Development Policy points for additional affordability.
Failure to comply blocks the certificate of occupancy and triggers liquidated damages equal to in-lieu fee per missing unit, plus $1,000 to $5,000 daily fines under MCC 2-44-085 and possible TIF clawback.
Chicago, IL
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Chicago, IL
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