Chicago City Wire

Chicago is grappling with challenges in its affordable housing sector, partly due to complex regulations. Mayor Brandon Johnson has pledged to streamline the approval process for new housing projects through his "Cut the Tape" campaign. However, developers continue to face lengthy delays.

A specific rule requiring developers to submit an economic disclosure statement has drawn criticism. This rule mandates that all parties involved in a project prove their companies have no historical financial ties to slavery before the U.S. Civil War. According to Cat Vielma, director of acquisitions for Red Stone Equity Partners and a member of the mayor’s task force, this requirement adds significant costs and time burdens on developers.

City Hall defends the rule as a means "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." Despite these intentions, no contractor has been denied participation based on this requirement.

The city's Chicago Low-Income Housing Trust Fund is facing financial difficulties, being $10 million short for its 2025 budget. The real estate market is also struggling, with Chicago experiencing poor growth in home values compared to other major cities.

Proposed solutions include reducing restrictions on building and revising land-use policies to allow more multi-family residences. It remains uncertain whether these changes will be implemented by Mayor Johnson and the City Council.