Chicago Sun Times: The case for green-lighting green social housing in Chicago
Green social housing is an environmentally and fiscally sustainable, mixed-income housing production model that will enable our city to develop permanently affordable housing for all Chicagoans, write four City Council members.
By Ald. Walter Burnett, Ald. Lamont Robinson , Ald. Angela Clay and Ald. Leni Manaa-Hoppenworth
The city of Chicago faces two pressing challenges that cannot be ignored: a lack of housing options, especially affordable housing, and the growing impact of climate change. These challenges affect all of us, no matter what community you reside in.
Currently, there are an estimated 119,000 fewer affordable housing apartments than there are families in need. Over 51% of Chicago renters are cost-burdened, meaning they spend more than 30% of their income on rent and utilities. Simultaneously, it is estimated that buildings make up 70% of carbon emissions in Chicago, exacerbating our challenges with poor indoor air quality that can lead to negative health outcomes for all residents. Together, these issues make it challenging for young people, families and seniors to thrive.
For years, the city has been leveraging resources like the Low-Income Housing Tax Credit to address the need for affordable housing. But unfortunately that tax credit, like other federal funding sources, is unlikely to grow in the coming years — and may even face significant cuts.
That’s why we have been working with Mayor Brandon Johnson, the Chicago Department of Housing and a coalition of advocates and national experts to propose a solution that prioritizes our residents and the planet. Green social housing is an environmentally and fiscally sustainable, mixed-income housing production model that will enable our city to develop permanently affordable housing for all Chicagoans. Under the green social housing model, a minimum of 30% of all development units are permanently affordable for households making up to 80% of the area median income and the rest are market rate, allowing for rent to remain affordable without requiring ongoing city subsidies.
OPINION
In the spring of 2024, the Johnson administration and City Council passed the Housing and Economic Development bond that will fuel our equitable housing and community development priorities for the next five years. The bond set aside $135 million for the Green Social Housing Revolving Loan Fund to provide a low-cost capital investment in housing developments, thereby reducing construction costs. The Residential Investment Corporation, a nonprofit developer to be established by the city, will form joint ventures with private developers seeking to use this financing tool and retain a majority ownership. By investing in the revolving loan fund and establishing the investment corporation to administer it, we can create a self-sustaining funding source that will continue to produce new housing developments in the city independent of state, federal or additional city appropriations.
Not only are green building standards expected to increase city-supported affordable and mixed-income housing production by up to 50%, but they will also improve indoor air quality and reduce tenant utility bills, saving hundreds of dollars each year. With the cost of living on the rise, our residents need relief now.
The Department of Housing is seeking authority from City Council to establish the investment corporation, which follows national best practices and frees up the subsidiary to move “at the speed of the market,” keeping costs down and maximizing opportunities to develop. Additional administration and Council approvals will still be required to fund each project using the green social housing model — a model we stand ready to support.
It is time for bold and innovative solutions to tackle our challenges with housing instability and climate change. We look forward to collaborating with our City Council colleagues to achieve a common goal of increasing the housing supply and affordability in a sustainable, resilient city without overrelying on taxpayers or federal funding.
Alds. Walter Burnett (27th), Lamont Robinson (4th), Angela Clay (46th) and Leni Manaa-Hoppenworth (48th) all currently serve on the City Council.
The views and opinions expressed by contributors are their own and do not necessarily reflect those of the Chicago Sun-Times or any of its affiliates.
The Sun-Times welcomes letters to the editor and op-eds. See their guidelines.