Ald. Manaa-Hoppenworth Passes Green Social Housing Initiative
ALD. MANAA-HOPPENWORTH PASSES GREEN SOCIAL HOUSING INITIATIVE
Chicago now has the largest revolving loan fund for new housing in the country.
CHICAGO—On Wednesday, May 7, City Council voted 30-18 to pass Alderwoman Leni Manaa-Hoppenworth’s Green Social Housing Initiative that was first introduced in February. With the passing of the GSH ordinance today, Chicago now has the largest revolving loan fund for new housing in the country with $135 million. Montgomery County’s successful revolving loan fund for new housing is $100 million and is now the second largest in the country.
“Chicago is facing a dual crisis of housing and climate,” Ald. Manaa-Hoppenworth said. “Chicago has a shortage of 120,000 affordable units, and buildings account for 70% of Chicago’s emissions. Green Social Housing is an incredibly efficient tool that addresses both of these issues without relying on increasingly as-risk federal support.”
Green Social Housing is an environmentally and fiscally sustainable, mixed-income housing production model that will increase City-support for affordable and mixed-income housing production by up to 50%. The model provides permanent affordability and reinvestment. Permanent affordability with City control means that investments into affordability do not expire. Reinvesting gains means that equity builds over time and can be reinvested into additional projects and deeper levels of affordability.
Alderwoman Manaa-Hoppenworth is negotiating with DOH and CTA to bring one of the first Green Social Housing projects to the 48th Ward on Broadway. If approved, the new development would be built on the CTA-owned parcel of land on Broadway between Bryn Mawr and Hollywood that is currently being used for staging the Red Purple Line Modernization Project. No funding approval is included in this ordinance. In accordance with the HED Bond Ordinance, GSH projects utilizing $5 million or more will require City Council approval. In April 2024, City Council passed the Housing and Economic Development (HED) Bond with a set-aside of $135 million for the Green Social Housing Revolving Loan Fund.
This is one of the first major pieces of legislation from freshman Alderwoman Leni Manaa-Hoppenworth. More information about GSH and a letter from Ald. Manaa-Hoppenworth about the initiative is available on the 48th ward blog.
The GSH Revolving Loan Fund replaces the need for private equity, reducing construction costs. The Residential Investment Corporation, the non-profit developer, will form joint ventures with private developers seeking to use this financing tool, and retain a majority ownership stake during both construction and after stabilization. This approach leverages the efficiency of private sector development while creating permanent community benefits of affordable, healthy homes.
GSH developments are planned to meet Green Building Standards. These sustainability measures decrease carbon emissions, provide affordable utility bills and reduce residents’ exposure to poor indoor air quality.
“The current system is not working, and it’s time we take bold steps towards making affordable and sustainable housing available to all Chicagoans,” Alderwoman Leni Manaa-Hoppenworth said. “Green Social Housing is an innovative and proven strategy and we’re proud to bring it to Chicago today.”
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