CHICAGO — A new property tax incentive meant to create or preserve affordable housing is already generating results within Chicago’s newest downtown apartment towers and in neighborhoods across the South and West Sides. City officials, housing advocates and some builders say it could also ensure future development doesn’t keep families with modest incomes locked out of downtown’s most vibrant neighborhoods.
“This is something Chicago really needed, and that’s why we spent years and years working on it and getting it through the legislature,” said Curt Bailey, president of Related Midwest, which will soon put the finishing touches on The Row Fulton Market, a 300-unit rental tower in Fulton Market, the city’s hottest market. The tower will include 60 affordable units, the first major project using the incentive. “We’re the first, but there will be many, many more.”
The Affordable Illinois incentive package, signed into law by Gov. J.B. Pritzker in the summer of 2021, requires participating developers in high-income areas such as Fulton Market and other downtown neighborhoods to keep 20% of the units affordable for 30 years. They also must provide all affordable units on-site. That’s a big change. The city has for years required developers securing zoning changes or other benefits to provide some affordable housing. But many grouse that building on-site is expensive, and they often fulfill requirements by paying fees or building affordable units in cheaper neighborhoods.
