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What is ARO- Chicago’s Affordable Requirements Ordinance?
*This information does not replace the counsel of an attorney. There are a number of pending changes to the ordinance being considered by the Chicago City Council and substantive pieces of even this Q and A may be modified or nullified as a result. Refer to the City Clerk of Chicago/ Housing for the most recent ordinance.
What is the Affordable Requirements Ordinance (ARO)?
The ARO is designed to economically blend rental or owner occupied market rate developments to allow for occupancy by qualified individuals or families at an affordable rate. It impacts new or existing residential developments which add 10 or more units and require new zoning, city land purchase or city financial assistance.
How is affordability defined?
Affordability is defined in a number of ways. For rental, housing that is affordable means a household earning up to 60% of the area median income. For owner occupied housing, housing that is affordable means an applicant earns up to 100% of the AMI. This changes if the subject RENTAL property is funded by TIF (Tax Increment Financing). In that case the AMI drops to 50%; and for owner occupied it drops to 80% of AMI. Units are required to remain affordable for 30 years. If the owner occupies the unit for a continuous period of 30 years the city will release the affordable housing agreement.
Getting one of these “affordable” apartments is not easy and not everyone can qualify. It is possible to live in a “luxury building” in a $2000 1 bedroom apartment for under $900! BUT, you must have great credit, usually above 675 and make under $35,000 a year. – and these figures will vary from building to building.
The demand for affordable apartments is off the charts and not nearly enough inventory to keep up with the demand. This is a complex topic and always changing. Same goes for the proposed rent control bills.
I will try to cover more on the topic, in the near future!
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