Latest news with #CuttheTape
Chicago Tribune
18-05-2025
- Politics
- Chicago Tribune
Editorial: It's not the messaging, Mr. Mayor. Your policies and governance are the problems.
We're halfway through Mayor Brandon Johnson's term, and the city the mayor described in a series of recent interviews to mark the milestone hardly resembles what we see. We agree with the mayor that Chicago is a great American city, made so by the people who live, work, play and love here. But in many other respects — a transit system that continues to perform unacceptably, public schools that cost too much and do a poor job of teaching our children, violent crime levels well above peer American cities and a local economy needlessly deprived of the dynamism that produced our uniquely beautiful skyline — Chicago is ailing. For all the unfair shots ideologically motivated critics take at the city, Chicagoans who've grown up here and made adult lives here know something has gone wrong these last two years. They've seen what this city looks and feels like when things are going well. And, judging from Johnson's rock-bottom public-approval numbers, many of them have concluded he's a big part of the current problem. The job of mayor is tough no matter who's in the office, but Chicago could be doing so much better with a different brand of leadership — and, really, a wholly different philosophy — than Johnson has brought to the fifth floor. Before we discuss what we think is wrong, let's recognize what Johnson has done well. Topping that list is appointing Chicago police Superintendent Larry Snelling, who has helped restore some measure of morale to the force, overseen a noteworthy reduction in violent crime and led a smooth Democratic National Convention in which protesters were allowed to have their say without sparking chaos. Likewise, Johnson's recent choice of Michael McMurray in the crucial post of aviation commissioner was solid. On the policy front, his Cut the Tape initiative, aimed at reducing the inexcusably long time it takes to win city approval for development projects, is laudable. The execution, however, has been too slow. And, more generally, no one doubts Johnson's love for Chicago and his honest desire to lift up neighborhoods that long have been neglected. But the losses and setbacks have far outnumbered the wins despite the City Council being populated with record numbers of self-described progressives, who (on paper at least) are allies of the mayor. Leave aside more moderate aldermen who from the start were unlikely to back Johnson's agenda; the mayor has struggled time and again to win support even from fellow progressives for high-priority initiatives. Many of those progressives have openly feuded with his administration. Likewise, when they've had the chance, voters have clearly expressed their displeasure with the mayor. The most striking example was the March 2024 rejection of his Bring Chicago Home referendum, which would have allowed the city to dramatically hike taxes on the sale of higher-priced residential and most all commercial property to fund homelessness programs. The school board elections last November were another warning sign. Improbably, candidates not endorsed by the mayor's most important political ally, the Chicago Teachers Union, won six of nine contested elections — a clear rebuke of the mayor. In interviews, Johnson's message at the halfway mark has consisted largely of the time-honored political tradition of acknowledging mistakes in the same way a job applicant responds to the question of describing their biggest flaw by saying they work too hard at times. In the mayor's telling, it's not any of the policies or their execution that explain his unpopularity; it's that he hasn't done enough to communicate all the wonderful things that are happening on his watch. He points to city initiatives like the so-called green social housing ordinance — one of his few victories in the City Council — which will have the city financing and for the first time taking direct ownership of affordable housing projects. He mentions early-term policy changes like eliminating the subminimum wage for tipped employees and imposing paid-leave mandates on businesses — initiatives that raise costs for existing businesses and discourage the creation of new ones. While the intentions behind these policies were mostly good, they don't make up for the lack of confidence private investors and job creators feel in the city under Johnson's leadership. It's not even close. The oft-cited dearth of cranes in Chicago's sky represents tangible evidence. More generally, the numbers confirm what Chicagoans see and feel as they move about the city. With the exception of a few retail strips in affluent neighborhoods, Chicago isn't thriving. It's not growing. It's lacking energy. And it's losing ground to competitors. Every year, on behalf of state government, Moody's produces a detailed and illuminating report on Illinois' economy. Those reports tell a damning tale of Johnson's term so far. In February 2023, three months before Johnson took office, Moody's pointed to Chicago employment growth of 3.5% over the previous year and observed that the performance 'outpaced' the Midwest and the U.S. as a whole. A year later, in February 2024, nine months into Johnson's term, Moody's said, 'Chicago's economy is showing signs of fatigue.' Job growth had slowed to just 0.8%, with most private-sector industries other than health care lagging. Wage gains also were worse in Chicago than in the country as a whole. The most recent report, from February 2025, was sadder still. 'Chicago's economy is trailing its large peers and the U.S. overall,' Moody's said. Employment was 'relatively flat for the past year and a half.' Throughout Johnson's tenure, the city's unemployment rate consistently has been about a percentage point above the national rate. Johnson describes himself as 'pro-business' and told Crain's Chicago Business he will 'put his record up against' any past mayor with a business-friendly reputation. Very few people actually doing business in Chicago would agree with the mayor's self-assessment. Johnson still doesn't seem to understand that economic development doesn't emanate mainly from City Hall and its programs — or shouldn't, anyway, in a healthy commercial ecosystem. Far more jobs and economic opportunity, including for people living on the South and West sides, are created when the city provides essential services at a reasonable cost and engenders confidence in those considering establishing new businesses or expanding existing ones that stability along those lines can be expected in the future. Thus far, the Johnson administration has failed in that basic task. On his watch, the city's debt rating has been downgraded for the first time in a decade. Unlike in past years, the administration last week barred journalists from attending any part of a two-day gathering with investors in which Johnson's finance team attempted to persuade them to buy hundreds of millions in new bonds the city wants to issue this year. Hardly inspires confidence. Facing a daunting budget deficit last year, the mayor proposed a $300 million property tax hike, summarily rejected by the City Council, thereby breaking a categorical campaign promise while refusing to consider layoffs or even furloughs to make ends meet. He's piling more debt on a city awash in IOUs and even pushed hard — again, failing so far, thankfully — for Chicago Public Schools to take on hundreds of millions in more debt despite being the largest issuer of junk-rated municipal bonds in the country. The mayor could be considered the epitome of a tax-and-spend Democrat, only he's typically unable to persuade fellow officeholders with similarly progressive views to green-light the taxes. So he's become a borrow-and-spend Democrat. For any mayor, the job entails two primary tasks before all else: public safety and financial stewardship. On the latter count, this mayor has been deeply disappointing so far. In our view, that's a major reason why Chicago's economy is stuck in the mud. It's not that Chicagoans haven't understood what you're selling, Mr. Mayor. The problem is what has been on offer.
Yahoo
13-05-2025
- Business
- Yahoo
As Johnson administration touts ‘Cut the Tape,' affordable housing developers want faster progress
Veronica Gonzalez aims to build 50 units of affordable housing and a food hall in East Garfield Park. She is a long way from getting there, though. Her nonprofit affordable housing development firm's deal was financed by the state's federally funded tax credit program for low-income housing — an essential piece of capital to move affordable housing projects forward — in April 2024 after applying about nine months prior. The project then went through multiple city design reviews starting in early August, which were not completed until early January 2025. She submitted her plan to the City Council in March and various departments are reviewing the proposal before it will go through about four more multipronged steps for evaluation before shovels can be in the ground. Gonzalez expects work to begin in the second quarter of 2026 — about three years after she applied for tax credits to fund the project — and construction to be completed about 18 months later, which is standard for building apartments. '(Developers) are all frustrated (when it comes to the process) to deliver affordable housing,' Gonzalez said, who is the Midwest director of development for the NHP Foundation. 'A lot of the costs are embedded in the cost of doing business with the city.' Mayor Brandon Johnson signed an executive order in December 2023 to launch one of his signature agenda items, 'Cut the Tape.' The initiative seeks to reduce the bureaucratic red tape to speed up housing development and, in turn, reduce costs. Johnson convened a task force of local real estate professionals and city leaders roughly a year ago to help propel the initiative. Affordable housing professionals like Gonzalez, who is on the initiative's two-year task force, say they are happy these conversations are happening but are still waiting to see if the Johnson administration follows through on its promises. Some are frustrated with the lack of progress a year later. While she understands that shifting organizational culture takes time and appreciates the Johnson administration's focus on this issue, Gonzalez said developers like her signed up for an 'Army haircut' when it comes to changes in the building process, not a light trim. As Cut the Tape efforts take shape, another Johnson housing initiative aimed at spurring affordable development was passed by the City Council Wednesday after weeks of debate. These endeavors come as Chicago, like other cities across the country, faces serious housing shortages, especially for affordable units. Cut the Tape is a collaborative effort across various city bodies, including the Department of Housing, Department of Planning and Development and City Council. The changes that have happened fastest were done administratively by department commissioners and did not have to be approved by the City Council, said Abby Sullivan, the mayor's office point person for departments involved in Cut the Tape. Sullivan said many changes for the affordable housing development space haven't come to fruition yet. 'Everyone that's involved in this would really like the process to be going faster,' Sullivan said. 'It would be wonderful if we could get some of these ordinances to pass quickly, but that's just not the nature of the process.' Chicago Department of Planning and Development Commissioner Ciere Boatright pushed back on the idea that no progress has been made on the initiative in an interview with the Tribune. The Chicago Plan Commission, in charge of evaluating development proposals, has reduced its review timeline from 135 days to 79 days, Boatright said, in a year when 37 projects worth $11 billion dollars were approved in 2024. The commission did this by reducing the number of design reviews from three to one and improving collaboration across departments. The department is also proactively seeking zoning changes for corridors instead of waiting for large projects to be proposed for the areas. More than 1,000 properties have been or are in the process of being rezoned in the last 12 months, Boatright said. While these rezoning efforts are happening, the planning department has speeded up its disposition of the 10,000 city-owned lots for residential and commercial development. The timeline of parcel valuations has been cut from six months to one month, Boatright said, and the previously monthslong process for a prospective buyer to survey the property by going on site now takes days. Titles to the land are being sought when a parcel is listed for sale as opposed to a few days before the close of a deal as well. 'Time kills deals,' Boatright said. 'At DPD, we are bullish on both mitigating risk and also working really collaboratively with our developers and other departments to advance these projects at a much faster, more aggressive timeline.' The zoning change approval process has also been amended for some projects, Sullivan said, to cut out the zoning board of appeals. Over 100 projects have benefitted from that change, she said. Additionally, Sullivan said wait times for developers to get in front of the Zoning Board of Appeals have shortened, as well as the lengths of the meetings themselves, helping to reduce developers' zoning attorney fees. Mayor Brandon Johnson plan to spur affordable housing with public money passes council Cook County housing authority facing potential multimillion-dollar budget shortfall as agencies brace for funding cuts Chicago housing market off to slightly busier start in 2025 Illinois affordable housing projects on pause as Trump administration evaluates funds Mayor Brandon Johnson's second year found him fighting unexpected battles Meanwhile, Johnson has talked about the need for affordable housing several times recently. On Wednesday, the mayor offered a solution to high rents in a WGN-TV town hall appearance: 'Build more units.' 'Because the demand is so strong with limited supply, landlords and other developers are able to grow those prices,' he said. In April, rents in Chicago increased 2.1% compared to .5% nationally, which was the fastest month-over-month rent growth of the nation's largest 100 cities, according to Apartment List. And while rents are increasing, Apartment List data shows Chicago's apartment vacancy rate of 4.9% slipped 0.7 percentage points compared to this time last year. Affordable housing developers and their advocates who spoke with the Tribune said they face more hurdles in comparison to market rate developers when it comes to building housing. They want to be treated the same, which would reduce costs, they say. Market rate developers get to build to city code, while affordable housing developers have to build to city code and extra standards laid out in the city's Architectural Technical Standards manual. 'It makes us feel like the same level of trust is not given to the affordable housing developers that is given to the market rate developers,' Gonzalez said. In response to a question about why affordable housing developers have to build to extra standards, the Chicago Department of Housing said in a written response that lower income residents don't have as much power to choose where they live or to move if the 'quality of their home degrades for reasons outside of their control' as market rate tenants do. 'Every Chicagoan regardless of their income deserves a respectable home, which to me absolutely includes sufficient countertop and storage space for the size of their family,' said Chicago Department of Housing Commissioner Lissette Castañeda. 'So, we believe it is imperative to establish and enforce these standards. … We are actively working to better simplify, clarify, and effectively communicate these policies to all stakeholders.' Real estate professionals said they are eager to see changes to the city's architecture standards manual. The housing department is in the process of 'overhauling' this manual, according to an April memo sent by Castañeda to the Chicago affordable housing development community. The department's staff received feedback on the manual through a yearlong steering committee that broke off from the Cut the Tape task force, as well as from other city and state housing bodies. A draft of the new standards are expected in June, the memo said, with a final manual coming this fall. The memo said some changes could be to the general contractor bidding process and the removal of the required third-party construction cost estimate. Members of the Chicago real estate community said they were happy to see the city release this update, but the memo is not tangible policy changes. 'A year is a long time to be talking about an issue while hundreds of thousands of Chicagoans struggle to pay rent,' said Cat Vielma, a member of the mayor's task force and director of acquisitions for Red Stone Equity Partners, a firm that brokers public and private partnerships for developers who receive Low Income Housing Tax Credits, like Gonzalez. Castañeda said that due to the manual's importance, the department is focused on 'making sure we get it right … and doing that work to get it right takes time.' In her role, Vielma helps developers sell their tax credits to banking institutions so the firms can more rapidly secure the financing they need to build. She said she is unable to tap into a certain type of financing for Chicago developers because of a lengthy, and, in turn, costly, part of the city's requirements for developers' economic disclosure statements, causing developers to not have access to billions of dollars in capital annually. The main issue with the statement, Vielma said, is the section that asks developers (and any city contractors) and their funders if they have records indicating if they have ever invested in or profited from slavery. 'That response takes hundreds of hours of diligence and costs and is a question that no other city or state requires,' Vielma said. 'This is a great example of what a city can do that adds costs and stifles private capital from working here.' A mayoral spokesperson said in a statement that as far as the mayor's office knows, no group has been denied city funding as a result of reporting this information. Per the section's guidelines, the purpose of question is 'to promote full and accurate disclosure to the public about any slavery policies sold by any companies, or profits from slavery by other industries (or their predecessors) who are doing business with the city.' The statement did not address the Tribune's question about the future of this requirement. Sullivan from the mayor's office said the timeline for receiving tax credits should be reduced in the next round because the preliminary project assessment application has been shortened. The burden on developers for the application process, she said, should also be diminished. The housing department said it does not expect the timeline to shift much, but it does expect the application process change to 'reduce work for developers.' Allison Clements, a member of the task force and executive director of the Illinois Housing Council, a membership association that represents organizations involved in affordable housing development, said there have 'definitely been some wins' for developers through the mayoral initiative. 'I think the fact that the city is paying attention to this entire effort is really, really important and a long time coming,' Clements said, especially given the increasingly challenging construction climate because of President Donald Trump's trade wars and higher interest rates. But, she said, there is 'still work to do.' Chicago Tribune's Jake Sheridan contributed. ekane@
Chicago Tribune
13-05-2025
- Business
- Chicago Tribune
As Johnson administration touts ‘Cut the Tape,' affordable housing developers want faster progress
Veronica Gonzalez aims to build 50 units of affordable housing and a food hall in East Garfield Park. She is a long way from getting there, though. Her nonprofit affordable housing development firm's deal was financed by the state's federally funded tax credit program for low-income housing — an essential piece of capital to move affordable housing projects forward — in April 2024 after applying about nine months prior. The project then went through multiple city design reviews starting in early August, which were not completed until early January 2025. She submitted her plan to the City Council in March and various departments are reviewing the proposal before it will go through about four more multipronged steps for evaluation before shovels can be in the ground. Gonzalez expects work to begin in the second quarter of 2026 — about three years after she applied for tax credits to fund the project — and construction to be completed about 18 months later, which is standard for building apartments. '(Developers) are all frustrated (when it comes to the process) to deliver affordable housing,' Gonzalez said, who is the Midwest director of development for the NHP Foundation. 'A lot of the costs are embedded in the cost of doing business with the city.' Mayor Brandon Johnson signed an executive order in December 2023 to launch one of his signature agenda items, 'Cut the Tape.' The initiative seeks to reduce the bureaucratic red tape to speed up housing development and, in turn, reduce costs. Johnson convened a task force of local real estate professionals and city leaders roughly a year ago to help propel the initiative. Affordable housing professionals like Gonzalez, who is on the initiative's two-year task force, say they are happy these conversations are happening but are still waiting to see if the Johnson administration follows through on its promises. Some are frustrated with the lack of progress a year later. While she understands that shifting organizational culture takes time and appreciates the Johnson administration's focus on this issue, Gonzalez said developers like her signed up for an 'Army haircut' when it comes to changes in the building process, not a light trim. As Cut the Tape efforts take shape, another Johnson housing initiative aimed at spurring affordable development was passed by the City Council Wednesday after weeks of debate. These endeavors come as Chicago, like other cities across the country, faces serious housing shortages, especially for affordable units. Cut the Tape is a collaborative effort across various city bodies, including the Department of Housing, Department of Planning and Development and City Council. The changes that have happened fastest were done administratively by department commissioners and did not have to be approved by the City Council, said Abby Sullivan, the mayor's office point person for departments involved in Cut the Tape. Sullivan said many changes for the affordable housing development space haven't come to fruition yet. 'Everyone that's involved in this would really like the process to be going faster,' Sullivan said. 'It would be wonderful if we could get some of these ordinances to pass quickly, but that's just not the nature of the process.' Chicago Department of Planning and Development Commissioner Ciere Boatright pushed back on the idea that no progress has been made on the initiative in an interview with the Tribune. The Chicago Plan Commission, in charge of evaluating development proposals, has reduced its review timeline from 135 days to 79 days, Boatright said, in a year when 37 projects worth $11 billion dollars were approved in 2024. The commission did this by reducing the number of design reviews from three to one and improving collaboration across departments. The department is also proactively seeking zoning changes for corridors instead of waiting for large projects to be proposed for the areas. More than 1,000 properties have been or are in the process of being rezoned in the last 12 months, Boatright said. While these rezoning efforts are happening, the planning department has speeded up its disposition of the 10,000 city-owned lots for residential and commercial development. The timeline of parcel valuations has been cut from six months to one month, Boatright said, and the previously monthslong process for a prospective buyer to survey the property by going on site now takes days. Titles to the land are being sought when a parcel is listed for sale as opposed to a few days before the close of a deal as well. 'Time kills deals,' Boatright said. 'At DPD, we are bullish on both mitigating risk and also working really collaboratively with our developers and other departments to advance these projects at a much faster, more aggressive timeline.' The zoning change approval process has also been amended for some projects, Sullivan said, to cut out the zoning board of appeals. Over 100 projects have benefitted from that change, she said. Additionally, Sullivan said wait times for developers to get in front of the Zoning Board of Appeals have shortened, as well as the lengths of the meetings themselves, helping to reduce developers' zoning attorney fees. Meanwhile, Johnson has talked about the need for affordable housing several times recently. On Wednesday, the mayor offered a solution to high rents in a WGN-TV town hall appearance: 'Build more units.' 'Because the demand is so strong with limited supply, landlords and other developers are able to grow those prices,' he said. In April, rents in Chicago increased 2.1% compared to .5% nationally, which was the fastest month-over-month rent growth of the nation's largest 100 cities, according to Apartment List. And while rents are increasing, Apartment List data shows Chicago's apartment vacancy rate of 4.9% slipped 0.7 percentage points compared to this time last year. Affordable housing developers and their advocates who spoke with the Tribune said they face more hurdles in comparison to market rate developers when it comes to building housing. They want to be treated the same, which would reduce costs, they say. Market rate developers get to build to city code, while affordable housing developers have to build to city code and extra standards laid out in the city's Architectural Technical Standards manual. 'It makes us feel like the same level of trust is not given to the affordable housing developers that is given to the market rate developers,' Gonzalez said. In response to a question about why affordable housing developers have to build to extra standards, the Chicago Department of Housing said in a written response that lower income residents don't have as much power to choose where they live or to move if the 'quality of their home degrades for reasons outside of their control' as market rate tenants do. 'Every Chicagoan regardless of their income deserves a respectable home, which to me absolutely includes sufficient countertop and storage space for the size of their family,' said Chicago Department of Housing Commissioner Lissette Castañeda. 'So, we believe it is imperative to establish and enforce these standards. … We are actively working to better simplify, clarify, and effectively communicate these policies to all stakeholders.' Real estate professionals said they are eager to see changes to the city's architecture standards manual. The housing department is in the process of 'overhauling' this manual, according to an April memo sent by Castañeda to the Chicago affordable housing development community. The department's staff received feedback on the manual through a yearlong steering committee that broke off from the Cut the Tape task force, as well as from other city and state housing bodies. A draft of the new standards are expected in June, the memo said, with a final manual coming this fall. The memo said some changes could be to the general contractor bidding process and the removal of the required third-party construction cost estimate. Members of the Chicago real estate community said they were happy to see the city release this update, but the memo is not tangible policy changes. 'A year is a long time to be talking about an issue while hundreds of thousands of Chicagoans struggle to pay rent,' said Cat Vielma, a member of the mayor's task force and director of acquisitions for Red Stone Equity Partners, a firm that brokers public and private partnerships for developers who receive Low Income Housing Tax Credits, like Gonzalez. Castañeda said that due to the manual's importance, the department is focused on 'making sure we get it right … and doing that work to get it right takes time.' In her role, Vielma helps developers sell their tax credits to banking institutions so the firms can more rapidly secure the financing they need to build. She said she is unable to tap into a certain type of financing for Chicago developers because of a lengthy, and, in turn, costly, part of the city's requirements for developers' economic disclosure statements, causing developers to not have access to billions of dollars in capital annually. The main issue with the statement, Vielma said, is the section that asks developers (and any city contractors) and their funders if they have records indicating if they have ever invested in or profited from slavery. 'That response takes hundreds of hours of diligence and costs and is a question that no other city or state requires,' Vielma said. 'This is a great example of what a city can do that adds costs and stifles private capital from working here.' A mayoral spokesperson said in a statement that as far as the mayor's office knows, no group has been denied city funding as a result of reporting this information. Per the section's guidelines, the purpose of question is 'to promote full and accurate disclosure to the public about any slavery policies sold by any companies, or profits from slavery by other industries (or their predecessors) who are doing business with the city.' The statement did not address the Tribune's question about the future of this requirement. Sullivan from the mayor's office said the timeline for receiving tax credits should be reduced in the next round because the preliminary project assessment application has been shortened. The burden on developers for the application process, she said, should also be diminished. The housing department said it does not expect the timeline to shift much, but it does expect the application process change to 'reduce work for developers.' Allison Clements, a member of the task force and executive director of the Illinois Housing Council, a membership association that represents organizations involved in affordable housing development, said there have 'definitely been some wins' for developers through the mayoral initiative. 'I think the fact that the city is paying attention to this entire effort is really, really important and a long time coming,' Clements said, especially given the increasingly challenging construction climate because of President Donald Trump's trade wars and higher interest rates. But, she said, there is 'still work to do.' Chicago Tribune's Jake Sheridan contributed. ekane@
Axios
20-03-2025
- Business
- Axios
Crisis to opportunity: 4 strategies to expand housing supply
Families across the U.S. face an increasingly unaffordable housing market. As of 2024, an estimated deficit of 3.7 million homes is driving up costs in almost every state, including Illinois. More than half of all renters spend more than 30% of their income on housing costs. Over 12 million pay more than 50% of their income toward these expenses. Why it's important: The rising cost to rent or own a home undercuts neighborhood stability, local economic vitality and overall economic growth. What's missing: The "missing middle" refers to a range of moderate-cost housing types. Think: duplexes, townhomes, single-family "starter" homes and older private multifamily rental buildings. This housing, historically prevalent in urban areas like Chicago, has become less common and underproduced due to restrictive zoning practices and other market dynamics. This missing middle housing is also largely unsubsidized. That means if the mainstream real estate and construction industry isn't building it, few public resources are available to fill construction and rehabilitation cost gaps for more mission-focused developers. Here's what else: Naturally-Occurring Affordable Housing (NOAH) — which refers to existing rental housing in typically older, privately-owned buildings — makes up the majority of affordable housing in the U.S. Generally, it's more cost effective to preserve and renovate NOAH than construct new units, but regulatory, financial and market barriers prevent achieving meaningful scale to meet local demand. Some strategies: Working closely with national and local partners, JPMorganChase has identified several place-based strategies to increase affordable housing supply — all based on business insights, philanthropic investment, and research and policy expertise. These insights present an opportunity for public and private sector stakeholders to target the dynamic circumstances underlying the national housing shortage and tailor solutions to local markets — like Chicago. 🏠 Strategy 1: Streamline municipal zoning and land use processes Zoning regulations that limit density, target and restrict housing types, or add cost prohibitive requirements (see: high parking ratios) limit the ability to deliver the full spectrum of housing options and price points needed for a diverse housing market. Removing redundancies and standardizing processes can help municipalities facilitate faster approvals and reduce bureaucratic hurdles, creating a more predictable development process and making investing in housing more attractive for developers. An example: Chicago is implementing the Cut the Tape initiative, a suite of recommended process improvements aimed at removing barriers, establishing more concurrent review steps, increasing transparency and streamlining application processes. The City is also piloting expedited reviews for affordable housing development and expanding reduced parking minimums across Chicago, already established in areas near public transit. JPMorganChase has supported the implementation of these reforms by supporting the Metropolitan Planning Council and the Civic Consulting Alliance — both of which provide consultative strategic support to Chicago departments. 🏠 Strategy 2: Facilitate effective property acquisition strategies Acquiring land suitable for development can be challenging, time-intensive and costly. Municipalities have several levers at their disposal to ensure land acquisition strategies are efficiently tailored to meet local housing market needs. An example: The City of Chicago has prioritized developing a comprehensive strategy around its landholdings. One of the most visible manifestations of underinvestment in Chicago's South and West sides is property and land vacancy. Efforts to redevelop these lots in targeted neighborhoods will create equity for homebuyers, allow for upward housing mobility for residents, and stabilize and increase the value of surrounding homes and properties. United Power's Reclaiming Chicago targets city blocks to acquire and build homes. The coalition also prepares and connects homebuyers to affordable mortgages and helps them plan for long-term maintenance and repairs. The goal: To build 2,000 affordable for-sale homes in Chicago's South and West sides in the next decade. JPMorganChase has supported the coalition since 2020, providing over $10 million to help leverage vacant city-owned land to build affordable homes in partnership with local government. 🏠 Strategy 3: Support construction innovations Housing development construction is a costly and capital-intensive endeavor — even with reduced costs from streamlining bureaucratic development processes and adopting more efficient land acquisition strategies. Macroeconomic factors, like supply chain disruptions and rising material and labor costs, further increase the capital required. An example: Local developers in Chicago are exploring new models to reduce construction time and design costs and scale production for more affordable homes — like modular building. With modular building, construction is done offsite and then assembled onsite. The results: This method can shorten development timelines and extend the construction season, which is beneficial in areas with colder winters — like Chicago. It can also provide year-round employment for construction workers. The Connecting Capital and Community (3C) program, supported by JPMorganChase, has formed an alliance of homebuilders using traditional and modular construction to organize over 60 lots under site control and build six new affordable homes so far, with 30 more pending approval. 🏠 Strategy 4: Strengthen local financing and development capacity for production and preservation Because of the capital-intensive nature of housing development, it's often economically inefficient for a developer to build new or rehabilitate housing at rent or purchase prices affordable for low- and moderate-income households. Nonprofit and other mission-driven organizations are an essential part of the housing supply ecosystem because they can effectively assemble public and private sources of capital at scale. These organizations rely on a mix of philanthropic investment, public funding and private capital. That means coordinated efforts across the public, private and civic sectors — and aligned financing solutions — are fundamental to constructing affordable housing at scale. An example: The Preservation Compact within the Community Investment Corporation, a local community development financial intuition (CDFI), has coordinated and co-designed strategies across government, non-profit, real estate, philanthropic and finance to preserve government subsidized housing and NOAH properties. Since its inception in 2008, the coalition has preserved the ongoing affordability of 7,000 rental units; raised, supported and helped develop a $48 million loan program and $5 million Chicago CDFI collaborative to redevelop 1,500 units; and more. The takeaway: JPMorganChase is committed to powering local economies, and affordable and resilient housing markets for low- and moderate-income families in Chicago and cities across the U.S. are essential to drive economic growth and opportunity.
Yahoo
24-02-2025
- Politics
- Yahoo
Editorial: Frigid temperatures highlight the harshness of Chicago homeless experience — and the need for new ideas
Bitter winds cut through Chicago streets last week, covering sidewalks with ice and driving people indoors. For thousands of unhoused Chicagoans, these conditions weren't just uncomfortable — they were life-threatening. Right now, Chicago activates warming areas at six community service centers across the city when temperatures drop below 32 degrees. The city also offers up to 190 other public spaces, including Park District facilities, libraries and more, and officials encourage anyone in need to dial 311 for assistance. Many hardworking private organizations are also helping meet the demand for beds and warmth. But the people on the frontlines struggle to keep up with demand. In 2023, Chicago's homeless population was 6,139, nearly the same as it was a decade earlier. As the migrant crisis deepened, Chicago data showed the homeless population rose to 18,836 last year. Chicago has nearly tripled its homelessness budget in a decade, yet the crisis persists. This isn't just about money — it's about spending it effectively, with a clear, results-driven strategy. We endorsed voting against the mayor's 'Bring Chicago Home' plan, which would've raised taxes on higher end property sales with the aim of funding programs to alleviate homelessness, not only because the ever-growing tax burden on Chicagoans motivates many to leave the city (which actually reduces city funding) but because we felt little confidence that there was a solid strategy behind how to invest any potential revenue to improve the city's homelessness crisis. The mayor never laid out specific plans for how he'd spend the money. And the plan is the important part, because money isn't always necessarily the answer. The immediate need is for shelter during cold weather. The bigger solution to the homelessness problem is long-term housing that people can afford, and there has to be a partnership with the private sector. Nearly 60% of low-income Chicagoans are severely rent burdened, meaning they spend half their income on housing, and officials estimate Chicago is short 120,000 affordable units. Chicago faces two major challenges on that front. First, much of the city's ill-conceived 'affordable' housing has become unaffordable for Chicago, which we've decried on these pages. A recent project in East Garfield Park came with a $38 million projected cost for just 43 units, amounting to an eye-popping $884,000 per taxpayer-subsidized rental unit. The second problem is restraints on building, such as zoning restrictions and a difficult permitting process, making it challenging to get private-sector developers to keep up with the demand for low-cost options. A full implementation of Johnson's excellent 'Cut the Tape' proposals could really help there. In the absence of reform, this crisis will continue to plague the city. With a shortage of shelter beds after the pandemic and housing costs pricing people out of finding a home, and the arrival of thousands of migrants, Chicago has seen a rise in homeless encampments in parks and other public spaces. The city cleared out one of those encampments in Humboldt Park in December. While some decried this move for displacing residents as winter deepened, there has been some good news on the city's efforts – 106 people living in parks were matched with long-term housing since 2023, according to Ald. Jessie Fuentes, who said that 'leaving individuals exposed to harsh winter conditions is not acceptable.' We agree. Chicago's troubles with homelessness are both acute and chronic, with the immediate need being to help everyone find safe housing and the long-term need being a real plan to reduce poverty. About 450,000 Chicagoans, or 17% of the city's population, live in poverty — significantly higher than the national average of 11%. The Brookings Institution, which studies homelessness and poverty, identified seven key factors that are strongly linked to success later in life, providing a useful roadmap for the areas upon which our elected officials should focus. Unsurprisingly, affordable housing was one. Another was education. As education goes up, poverty goes down. That doesn't just mean passing kids along from grade to grade; it means ensuring they have the skills needed to thrive as adults. As this board has said before, improving reading and other outcomes should be a point of emphasis not only in Chicago but across the state. In 2024, just 30% of fourth graders across Illinois were proficient in reading, according to the Nation's Report Card. In 2019, 34% of Illinois fourth graders were proficient in reading. To reduce poverty, we need leaders to put forth a platform that boosts childhood literacy so today's students are better armed against ending up on the streets later in life. Chicago's homelessness crisis reflects deeper inequities. Without a strategic plan that prioritizes affordable housing, streamlines development, and strengthens education, the cycle will persist. Submit a letter, of no more than 400 words, to the editor here or email letters@
